News Guide Africa

Tag: Ghana Gold Board (GoldBod)

  • GoldBod orders full in-country processing of gold exports in decisive downstream push

    GoldBod orders full in-country processing of gold exports in decisive downstream push

    By Adnan Adams Mohammed

     

    Ghana is officially shutting the door on raw mineral exports, setting up a high-stakes showdown for foreign buyers and local aggregators as the nation asserts full domestic control over its most lucrative natural resource.

    Starting September 1, 2026, the Ghana Gold Board (GoldBod) will block the shipment of all unrefined gold doré out of the country. The aggressive regulatory overhaul requires all licensed Self-Financing Aggregators (SFAs) to process their yields entirely at approved domestic refineries before shipping a single ounce overseas.

    A Masterstroke for Economic Sovereignty

    Rather than viewing the move as a simple administrative update, industry watchers see it as a bold geopolitical play to force international bullion markets to build value on Ghanaian soil.

    “The biggest change is that Ghana is moving primarily from being just an exporter of raw minerals to becoming a country that captures more value from its gold,” declared GoldBod Media Relations Officer Prince Kwame Minkah. “Instead of exporting doré and allowing refining and certification as well as other value-generating activities to happen elsewhere, we want it to happen right here in Ghana.”

    By holding the line on raw exports, GoldBod aims to secure massive downstream economic dividends that have historically slipped into off-shore accounts.

    “That means jobs, refining capacity, greater transparency, better traceability, stronger foreign exchange retention, and ultimately greater economic value for my country, Ghana,” Minkah asserted. “This is in line with the vision of the President of Ghana, His Excellency John Dramani Mahama, whose aim is to ensure that we achieve zero raw mineral exports by the year 2030. So we’ve started.”

    The government’s crackdown builds on momentum from recent supply chain interventions.

    “GoldBod says as far as our anti-smuggling interventions are concerned, we’ve been able to help significantly ensure that large volumes of gold are retrieved from the informal economy, with 170 tonnes absorbed through formal channels over the past one and a half years,” Minkah added, signaling that the state now has the leverage to tighten its grip on the market.

    Zero Tolerance for Non-Compliance

    Under powers granted by the Ghana Gold Board Act, 2025 (Act 1140), GoldBod’s Compliance Directorate has given aggregators until August 31 to rewrite existing foreign contracts to reflect mandatory local refining.

    Starting September 1, export paperwork will be denied until local refineries verify that all assaying, domestic refining fees, and processing standards have been fully satisfied.

    In a stern warning issued to market participants, GoldBod made its zero-tolerance policy explicit:

    “Failure to comply with this directive, including the export or attempted export of unrefined gold contrary to this Notice, shall constitute a breach of the conditions of an SFA licence.”

     

    Defiant exporters risk swift administrative penalties, instant export bans, and the permanent cancellation of their operating licenses. The message to global commodity markets is clear: adapt to Ghana’s terms, or lose access to its gold.

     

  • GoldBod rejects MP’s claims of GH₵1bn overdraft as “Base Falsehood”

    GoldBod rejects MP’s claims of GH₵1bn overdraft as “Base Falsehood”

    The Ghana Gold Board (GoldBod) has issued a stinging rebuttal against allegations by Tano South MP and Deputy Ranking Member on Parliament’s Finance Committee, Dr. Gideon Boako, who alleged that the state body owes an unpaid GH₵1 billion overdraft to the Bank of Ghana (BoG).

    In an official statement addressing the matter, GoldBod labeled the lawmaker’s assertions as “totally false,” “contrived,” and a deliberate effort to misinform the public regarding its financial health, demanding an immediate retraction and a full apology.

    The controversy stems from comments made by Dr. Boako during a televised panel discussion on Adom TV on Monday, August 24, where he cast doubt on the financial performance of the institution’s gold acquisition operations.

    “I’ve heard people say that GoldBod says they made a profit of GH¢907m, but that cannot be true because GoldBod took a GH¢1bn overdraft from the Bank of Ghana, and if that is reflected in their books, they’ll actually be in a loss,” Dr. Boako stated during the broadcast.

     

    His comments ignited swift backlash from GoldBod leadership, who moved quickly to set the record straight regarding their credit history and operational ledger.

    Through a formal press release issued by Media Relations Officer Prince Kwame Minkah, the corporate entity clarified that it operates without central bank debt instruments or external commercial liabilities.

    “For the records, the GoldBod has never at any time since its establishment taken a loan, overdraft or any debt instrument from the Bank of Ghana or any financial institution whatsoever,” Minkah stated.

     

    The statement further called into question the motives behind the claims, emphasizing that the body’s financial statements remain fully transparent and solvent.

    “The claim attributed to Dr. Gideon Boako is contrived and should be treated with utmost contempt,” the release noted, adding: “We entreat the MP to unequivocally retract and apologise for putting out this falsehood.”

     

    The clash marks the latest point of friction in an ongoing political debate over the management and auditing of the Domestic Gold Purchase Programme (DGPP). GoldBod maintains that its declared GH₵907 million operating profit reflects genuine corporate performance, cautioning political actors against conflating central bank balance sheets with GoldBod’s independent financial accounting.

     

  • Industry Leaders Demand Policy Overhaul to End Foreign Monopoly on Ghana’s Mineral Wealth

    Industry Leaders Demand Policy Overhaul to End Foreign Monopoly on Ghana’s Mineral Wealth

    Foreign mining conglomerates are facing unprecedented pressure in Ghana as top industry figures and state regulators demand a radical overhaul of the nation’s extractive sector, warning that decades of foreign control have drained the country of vital resource revenues.

    At the National Mining Dialogue in Accra, stakeholders warned that despite Ghana being one of Africa’s top gold producers, the vast majority of profits are shipped overseas through foreign equity, off-shore financing, and imported equipment.

    Delivering a sharp rebuke of the traditional mining framework, Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, argued that national extraction records mean nothing if local communities remain impoverished while external firms extract raw wealth.

    “The large-scale mining sector has been largely foreign-led, and too much of the value has leaked out of the country through ownership structures, financing arrangements, imported inputs, offshore services, limited beneficiation, and weak local industrial linkages,” Gyamfi said. “Production without ownership is limited. Production without value addition is leakage. Production without community transformation is a broken social contract.”

     

    Gyamfi pointed to major mining hubs such as Obuasi, where generations of foreign-led extraction have left behind minimal infrastructure and limited economic opportunities for young residents. He called for a shift toward domestic mine financing, local refining, and mandated local shareholding to halt capital flight.

    “If we want a new story, we must own more, refine more, process more, fabricate more, and retain more,” Gyamfi added. “We must promote more indigenous ownership of mines. We must support Ghanaian capital to participate meaningfully in exploration, mine development, mining services, and value addition.”

     

    State regulators aligned with the critique, emphasizing that relying on foreign corporations for local jobs is an inadequate metric for true economic development.

    “Our people are working in the mines, agreed, but do they own the mines?” asked Isaac Tandoh, Chief Executive Officer of the Minerals Commission. “The true wealth of a mining nation is not measured only by the minerals it exports. It is measured by the industries it builds, the businesses it grows, the technologies it develops, the skilled workforce it produces, and the opportunities it creates for future generations.”

     

    The push to dismantle external dominance comes as the government considers tighter domestic procurement mandates, expanded equity access for local investors, and strict value-addition requirements on exported gold.

     

  • GoldBod outlines “IPE” framework to catalyze investor returns, boost local refining, and address community discontent

    GoldBod outlines “IPE” framework to catalyze investor returns, boost local refining, and address community discontent

    In a major policy address targeting international investors, mining executives, and local leaders at the National Mining Dialogue in Accra, the Chief Executive Officer of the Ghana Gold Board (GoldBod) unveiled a structural strategy designed to transform Ghana’s mining sector from purely extractive operations into a value-retention and community-integrated investment ecosystem.

    Addressing stakeholders on the theme “Rethinking the Social Licence to Operate,” Sammy Gyamfi emphasized that long-term asset security and investor returns in Ghana are directly tied to local equity, value addition, and environmental stewardship.

    “A social license cannot survive where the youth believe mining has no place for them except as casual laborers… Mining communities must no longer be treated as land donors. They are custodians of the resource hence must be treated as development partners and economic shareholders,” the CEO declared.

     

    The “IPE” Investment Framework

    To modernize the sector and mitigate social operational risks, GoldBod proposed the IPE model Involve, Protect, Expand calling on institutional capital and private operators to align with national development goals:

    ● Involve: Higher, decentralized local royalty retention, structured Corporate Social Responsibility (CSR) contracts, and clear local procurement pathways across production services.

    ● Protect: Strict enforcement of environmental standards, mandatory land reclamation, and a zero-tolerance policy for water pollution to safeguard social stability.

    ● Expand: Government-backed support for indigenous capital in exploration, local refining, jewelry fabrication, and down-stream value creation.

    “Production without ownership is limited. Production without value addition is leakage. Production without community transformation is a broken social contract,” the GoldBod Chief remarked.

     

    Macroeconomic Impact & Operational Milestones

     

    The address highlighted gold’s dominant role in Ghana’s current economic performance, backed by strong production and trade figures:

     

    Metric / Indicator Output / Value Macroeconomic & Sector Impact

    Total Export Earnings (2025) ~$32.0 Billion Gold accounted for $20.2 Billion (63.1%), anchoring trade surpluses and foreign reserves.

    National Gold Output (2025) ~5.94 Million oz Artisanal & Small-Scale Mining (ASM) produced 3.11 million oz (52.4%), surpassing large-scale producers.

    GoldBod Formal ASM Exports ~170 Tonnes Generated over $17.0 Billion USD in foreign exchange since 2025, bolstering currency stability.

    Domestic Refining (2026 YTD) ~9 Tonnes Aggregated by GoldBod for local processing to capture refining fees and downstream benefits.

    Large-Scale Local Offtake 30% Local Acquisition Shifted from 20% offshore to 30% local acquisition to feed domestic refineries targeting LBMA certification.

     

    De-Risking Capital and Future Initiatives

    To overcome high entry barriers and de-risk exploration for new investors, GoldBod is partnering with the Ghana Geological Survey Authority on targeted geological studies in regions such as Funsi (Upper West) and Bensere (Ashanti). The initiative aims to build investment-grade portfolios while securing strategic state equity in future model mines.

    Key upcoming infrastructure projects designed to build an end-to-end ecosystem include:

    ● ISO-Certified National Assay Laboratory: Groundbreaking in November 2026 at the Aviance Cargo Village, Accra Airport, to establish Fire Assay as the mandatory standard for all ASM and large-scale gold exports.

    ● Traceability System: Awarding a technology-driven contract by late 2026 to ensure OECD-compliant, transparent supply chains.

    ● ASM Formalisation & Financing (2027): Launching equipment-financing programs tied to GoldBod aggregation models.

    ● Gold Tokenization Program (2027): Enabling fractional investment in gold-backed assets for domestic and regional investors.

    ● Ghana Gold Village: A dedicated industrial zone managed by subsidiary GoldBod Jewelry Limited to anchor commercial jewelry fabrication.

    Closing the address, the GoldBod CEO reassured the international and local business community that regulatory firmness and local equity go hand-in-hand with commercial profitability:

    “If we get this right, Ghana will not only produce gold. Ghana will produce prosperous mining towns, strategic industries around its minerals, and deeper community trust.”

     

  • Dr Razak Opoku’s Objective Assessment of Gold Trading Losses in Ghana

    Dr Razak Opoku’s Objective Assessment of Gold Trading Losses in Ghana

    a). Specific Objectives of GoldBod:

    1. To increase national foreign exchange reserves.

    2. To stabilize the cedi.

    3. To curb illegal gold smuggling.

     

    b). Purported Losses at GoldBod:

     

    $1.7 billion losses, reported by IMF.

     

    c). Reasons for the $1.7 billion losses cited by IMF:

     

    Losses caused by policy-related accounting cost or “quasi-fiscal” cost or trading shortfalls or transaction cost, and NOT as a result of direct cash loss or financial loss to the State.

     

    Per page 10 of the report, “Losses accrued on gold trades are a combination of service and assay fees paid to GoldBod, discounts on gold sold to off-takers(exporters) and most importantly, exchange rate losses from the spread between the forex bureau rate paid to purchase gold and the cedi reference rate used for BoG(Bank of Ghana) accounting.”

     

    Therefore, it is UNFAIR to soley blamed GoldBod for the $1.7 billion losses when Bank of Ghana is clearly in the picture.

     

    d). Best Examples to Practically Explain the meaning of Policy-related Accounting Cost (“Quasi-Fiscal Cost”)

     

    1. Government decision to spend about GH¢ 207 million on Fertilizer Subsidy, an amount which represents 50% price cut to benefit farmers.

     

    2. Government decision to spend about GH¢ 25 billion on banking and financial sector clean-up exercise to protect the funds of depositors.

     

    3. Government decision to offer a GH¢ 2 per litre cut (reduction) at the pumps to cushion consumers of petroleum products.

     

    e). Is GoldBod Achieving its Specific Objective 1 (To Increase National Foreign Exchange Reserves):

     

    Yes, but there is still room for improvements.

     

    GoldBod has significantly contribute to the increase of the national foreign exchange reserves of Ghana, with estimated figure of about $10 billion.

     

    Is it prudent strategy to lose $ 1.7 billion to attract a revenue of $10 billion? Yes or No answer.

     

    Is there a better alternative gold trading policy for Ghana to raise $10 billion for the national foreign exchange reserves without the Country losing $1.7 billion as a result of policy-related accounting cost(quasi-fiscal cost)?

     

    f). Is GoldBod Achieving its Specific Objective 2(To stabilize the Cedi):

     

    Yes, so far there is relative stability of the cedi against the US Dollar and other major trading currencies since the introduction of the GoldBod initiatives.

     

    However, there is still room for improvements.

     

    We want to experience Ghana whereby $1 is equivalent to GH¢ 5, and also with the Cedi performing extremely better against other trading currencies.

     

    g). Is GoldBod Achieving its Specific Objective 3 (To curb illegal gold smuggling):

     

    Yes, but a lot more has to be done by GoldBod to completely eradicate gold smuggling.

     

    According to the IMF, Ghana is estimated to have lost about $11.4 billion to gold smuggling between 2019 and 2024.

     

    The discrepancy between gold exports reported by Ghana and imports recorded by the United Arab Emirates(UAE) exceeded $4 billion, according to the IMF Report.

     

    $1.7 billion loss at Bank of Ghana caused by policy-related accounting cost versus $11.4 billion loss from 2019 to 2024 caused by gold smuggling, which of them should we be worried about the most as a citizens of Ghana?

     

    h). Impact of GoldBod on the Activities of Galamsey

     

    My major concerns are that:

    1. what measures have GoldBod put in place to address galamsey activities in the country?, and also ensure that the GoldBod do not purchase gold from companies and individuals engaging in galamsey activities?

     

    2. Is the operations of GoldBod significantly contributing to rising activities of galamsey in the Country?

     

    3. How GoldBod has managed to reduce gold smuggling and by what estimate in terms of US Dollars?

     

    i). Gold for Oil Programme and its losses from 2022-March 2025

     

    The purposes of the Gold- for-Oil Programme(G4O) were:

    1. To ease pressure on foreign exchange reserves.

    2. Stabilize domestic fuel prices.

     

    However, according to Bank of Ghana, the Gold-for-Oil(G4O) programme incurred financial losses of about GHS 2.43 billion, with the termination of the G4O programme in March 2025.

     

    The net loss on gold trading for Gold-for-Reserves(G4R) and Gold-for-Oil(G4O) for 2024 was estimated to be around GHS 5.66 billion(approximately GHS 5.7 billion).

     

    Conclusion

     

    Bank of Ghana in trading partnership with Ghana Gold Board(GoldBod) has incurred a policy-related accounting costs of $1.7 billion according to the IMF, and this cost is not as result of directly losing cash(financial losses). However, this $1.7 billion loss is better compared to losing $11.4 billion between 2019-2024 to gold smuggling.

     

    Both for Gold-for-Oil(G4O) and Gold-for-Reserves(G4R) incurred financial loss of GHS 5.7 billion but the question is that, were the policies of G4O and G4R able to achieved its intended purposes of currency stability, fuel prices stabilization, and prevention or reduction of gold smuggling?

     

    As a Country, should we reverse to Gold-for-Oil(G4O) or Gold-for-Reserves(G4R) or maintain the Ghana Gold Board(GoldBod)?

     

    …signed…

    Razak Kojo Opoku(PhD)

  • Experts divided over GoldBod’s $1.7bn losses and forex impact

    Experts divided over GoldBod’s $1.7bn losses and forex impact

    By Adnan Adams Mohammed

     

    Ghana’s aggressive push to assert state control over the small-scale gold trade has ignited a fierce ideological divide among top economic thinkers.

    At the center of the dispute is whether a reported $1.7 billion loss under the Ghana Gold Board (GoldBod) represents an intolerable hit to public coffers or a necessary investment to defense-fund national currency stability.

    The state-led purchasing framework, introduced to channel small-scale mining output directly into official reserves, faces dual pressures: celebrated on one side as a market-shaping success that starved illicit smuggling routes, and criticized on the other as a flawed intervention that shifted massive financial burdens onto the central bank.

    A Price Worth Paying for Currency Stability?

    Defending GoldBod’s financial record, Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), argued that fixating on short-term balance sheet deficits misses the broader macroeconomic victory.

    According to Dr. Manteaw, the $1.7 billion deficit should be understood as a operational setup cost necessary to break foreign cartels that previously controlled the local gold supply.

    “We make it look like this is the first time Ghana is making losses in its gold purchase program,” Dr. Manteaw observed during an appearance on JoyNews’ PM Express. “I’ve looked at the data. In 2022, we made a loss. In 2023, 2024, and 2025, we’ve made losses all those years. Why didn’t that become a problem?”

    “So if you had to incur a loss of $1.7 billion to bring in $10 billion, that for me shouldn’t be a problem… For me, they are transaction costs, and all the governments over the years have been incurring transaction costs.”

     

    Dr. Manteaw explained that upon its inception, GoldBod was forced to buy gold at competitive forex-bureau rates to outbid foreign syndicates predominantly Chinese, Indian, and Turkish buyers who had long monopolized local supply lines by providing cash advances and machinery to small-scale miners. He maintained that the resulting foreign exchange liquidity has stabilized the cedi, lowered inflation, and built a foundation for broader economic initiatives, such as the proposed 24-hour economy.

    Structural Flaws and Hidden Tax Costs

    Taking a starkly different stance, economist Professor Godfred Alufar Bokpin warned against over-attributing currency performance to GoldBod, arguing that the policy’s current architecture carries severe hidden costs for Ghanaian taxpayers.

    While acknowledging that GoldBod successfully squeezed gold smuggling, Prof. Bokpin insisted that broad economic stability remains the product of policy management by the Bank of Ghana and the Ministry of Finance, rather than commodity trading interventions.

    “This whole domestic gold purchase arrangement for which Gold Board essentially became the face of it from 2025 has also come at a significant loss to us,” Prof. Bokpin warned. “If you adopt a holistic approach and look at the whole intervention we put in place, the losses actually exceed the $1.7 billion we are talking about here.”

     

    Prof. Bokpin pointed to design flaws within the purchasing model and highlighted the state’s decision to scrap the 1.5% withholding tax on small-scale gold production to incentivize official declarations a move that deprived the treasury of vital revenue.

    “You have all these losses sitting on the books of the Bank of Ghana. In addition to that, we had to abolish the 1.5% withholding tax,” he noted. “If you look at total gold exports from artisanal small-scale miners which exceed $10 billion the fiscal losses that could have gone to fund roads, schools, and infrastructure were given up.”

     

    Unwinding the Deficit

    Despite their conflicting interpretations of the program’s value, both analysts agreed that running billion-dollar operational gaps is unsustainable over the long term.

    Prof. Bokpin noted that state authorities are already preparing an exit mechanism to restructure the program’s financial exposure.

    “Government itself, together with the Gold Board and the Bank of Ghana, recognize that these losses are not sustainable going forward,” Prof. Bokpin stated. “As part of the exit plan, the government intends to reduce these losses from about 17% or 14.5% down to about 5% going forward.”

     

    As Ghana navigates its post-recovery economic landscape, the battle over GoldBod highlights a critical trade-off: how much state revenue should be spent to secure foreign exchange reserves in a highly informal extractive economy.

     

  • Julius Debrah demands responsible mining as Ghana’s gold output soars

    Julius Debrah demands responsible mining as Ghana’s gold output soars

    By Adnan Adams Mohammed

     

    …At the National Mining Dialogue in Accra, Chief of Staff Dr. Julius Debrah outlined a bold vision for domestic industrialization, while the Ghana Gold Board introduced its “IPE” strategy to empower host communities…

     

    Chief of Staff, Hon. Dr. Julius Debrah, has issued a stern reminder to mining executives, traditional authorities, and policymakers: Ghana’s rise to become Africa’s leading gold producer and the sixth-largest globally must be viewed as a solemn duty to the nation, rather than a mere point of pride.

    Speaking at the National Mining Dialogue 2026 at the Kempinski Hotel in Accra, Dr. Debrah emphasized that global leadership in mining demands equal leadership in environmental protection, host-community development, and economic transformation.

    “Ghana’s position as the 6th largest gold-producing nation in the world places a huge responsibility on us,” Dr. Debrah declared. “It is a responsibility to mine responsibly, to safeguard our rivers and forest reserves, and to ensure that the wealth beneath our soil translates into tangible prosperity jobs for our youth, roads for our communities, and opportunities for generations yet unborn.”

     

    Transforming Gold into Domestic Industrial Strength

    Addressing state officials, foreign investors, and traditional leaders including His Royal Majesty the Ga Mantse, King Tackie Teiko Tsuru II Dr. Debrah outlined the government’s commitment to reforming sector governance. He stressed that raw gold exports must give way to domestic refining, local manufacturing, and sustainable community development.

    “We will not preside over an industry that enriches a few while impoverishing the many,” Dr. Debrah stated. “The time has come for mining that respects our land, empowers our people, and expands our economy beyond the pit… Let us convert the gold in our ground into the factories, schools, and hospitals of tomorrow.”

     

    Dr. Debrah also urged a united civic effort to protect natural resources and hold operators accountable.

    “Our chiefs must guard the land. Our media must inform the people. Our civil society must hold us all to account. This is a national project,” he urged.

     

    GoldBod Unveils Strategy to Support Sector Reform

    Aligning with Dr. Debrah’s national mandate, the Chief Executive Officer of the Ghana Gold Board (GoldBod) delivered a keynote address on the event’s core theme, “Rethinking the Social Licence to Operate.”

    Highlighting recent trade data—which showed gold generating $20.2 billion (63.1%) of Ghana’s $32.0 billion total exports in 2025, with small-scale miners producing 52.4% of total output—the GoldBod chief noted that young people in mining districts must become direct beneficiaries of the sector.

    “A social license cannot survive where the youth believe mining has no place for them except as casual laborers… Mining communities must no longer be treated as land donors. They are custodians of the resource hence must be treated as development partners and economic shareholders,” the GoldBod CEO asserted.

     

    To turn this philosophy into practice, GoldBod detailed its operational IPE Framework:

    ● Involve: Giving host communities a formal stake in licensing decisions, increasing local royalty retention, mandating CSR contracts, and supporting indigenous mine ownership.

    ● Protect: Enforcing environmental laws, reclaiming degraded forests, formalizing small-scale operators, and rehabilitating critical water treatment facilities across affected regions.

    ● Expand: Boosting domestic refining, constructing the upcoming Ghana Gold Village for jewelry manufacturing, introducing an airport-based ISO National Assay Laboratory by late 2026, and launching a gold tokenization initiative in 2027 to democratize gold ownership for citizens.

    Key Targets and Sector Impact

    ● Formalized ASM Exports: Over 170 tonnes exported through formal channels since 2025, generating more than $17 billion in foreign exchange to stabilize the currency and bolster national reserves.

    ● Local Offtake Mandate: A shift to 30% local output acquisition from large-scale producers starting July 2026 to supply domestic refineries and pursue global LBMA certification.

    ● National Assay Laboratory: Groundbreaking scheduled for November 2026 at Accra Airport to install ISO-certified Fire Assay standard testing for all gold exports.

    ● Environmental Rehabilitation: Reclaiming 150 total hectares of degraded lands in the Tano Nimri Forest Reserve and funding the rehabilitation of 6 Ghana Water Limited treatment plants.

    The summit concluded with shared agreement between state leaders and industry players that long-term commercial success in Ghana’s gold fields will ultimately depend on local value creation, active youth participation, and environmental restoration.

     

  • Understanding Ghana’s $1.7bn Gold Trading Losses: Policy cost, not stolen cash

    Understanding Ghana’s $1.7bn Gold Trading Losses: Policy cost, not stolen cash

    Following widespread public debate over the financial performance of the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG), economic analysts are urging citizens to distinguish between policy-related accounting adjustments and direct financial theft.

    The conversation surrounding Ghana’s central bank gold purchasing initiatives reached a fever pitch following reports referencing International Monetary Fund (IMF) data, which cited approximately $1.7 billion in cumulative losses associated with state gold trading strategies.

    However, closer inspection of the data reveals a far more nuanced economic picture.

    Demystifying the $1.7 Billion Accounting Cost

    According to page 10 of the recent IMF report, the reported $1.7 billion figure does not represent stolen funds or direct cash missing from state coffers. Instead, the loss reflects “quasi-fiscal” or policy-related accounting costs.

    “Losses accrued on gold trades are a combination of service and assay fees paid to GoldBod, discounts on gold sold to off-takers, and most importantly, exchange rate losses from the spread between the forex bureau rate paid to purchase gold and the cedi reference rate used for BoG accounting,” stated policy expert Dr. Razak Kojo Opoku in an objective assessment published this week.

    Dr. Opoku explained that quasi-fiscal costs are routine government trade-offs designed to achieve larger socio-economic benefits.

    “Think of it like the GH¢ 207 million spent on fertilizer subsidies to offer a 50% price cut to farmers, the GH¢ 25 billion spent on the financial sector clean-up to protect depositors, or fuel tax cuts at the pump,” Dr. Opoku noted. “These are deliberate accounting decisions made to absorb shocks on behalf of the public, not money lost to corruption. It is unfair to solely blame GoldBod when the central bank’s accounting framework is central to the picture.”

    Evaluating Core Objectives: Reserves, Cedi, and Smuggling

    GoldBod was established with three primary mandates: boosting national foreign exchange reserves, stabilizing the cedi, and curbing illegal gold smuggling.

    ● Foreign Exchange Reserves: Ghana’s national reserves have surged significantly, gaining an estimated $10 billion through central bank gold accumulation programs. Analysts argue that incurring a $1.7 billion accounting cost to secure $10 billion in liquid reserve buffers represents a defensible strategic trade-off, though experts question whether a less costly alternative exists.

    ● Cedi Stability: The cedi has experienced relative stability against the US Dollar and other major foreign currencies since GoldBod’s interventions matured. However, stakeholders note that further structural work is needed to drive the exchange rate down toward a target of GH¢ 5 to $1.

    ● Curbing Smuggling: The IMF estimates that Ghana lost roughly $11.4 billion to illicit gold smuggling between 2019 and 2024, with reported Ghanaian exports and United Arab Emirates (UAE) recorded imports showing a discrepancy exceeding $4 billion.

    “As Ghanaian citizens, we must ask ourselves which issue demands greater national concern: a $1.7 billion accounting cost incurred to build reserves, or the $11.4 billion lost directly to unrecorded gold smuggling over five years?” Dr. Opoku questioned.

     

     

     

    Environmental Concerns and the Galamsey Threat

    Despite progress on trade balances, major questions remain regarding GoldBod’s environmental impact. Chief among public concerns is whether GoldBod’s purchasing network inadvertently incentivizes illegal small-scale mining (galamsey).

    “Critical questions must be answered by GoldBod management,” Dr. Opoku emphasized. “What stringent verification measures are in place to ensure GoldBod does not buy gold from companies or individuals engaged in galamsey? Is the expansion of official buying channels inadvertently fueling illegal mining on the ground?”

    The Legacy of Gold-for-Oil (G4O)

    The evaluation comes on the heels of the formal termination of the Gold-for-Oil (G4O) program in March 2025. Designed to ease forex pressure and stabilize domestic pump prices, Bank of Ghana records show G4O incurred direct financial losses of roughly GH¢ 2.43 billion over its run.

    Combined, the Gold-for-Oil (G4O) and Gold-for-Reserves (G4R) initiatives registered a total net trading loss of approximately GH¢ 5.7 billion in 2024 alone.

    As Ghana navigates its post-G4O landscape, policymakers face a critical decision: should the country revert to legacy mechanisms like G4O and G4R, or refine the operations of the Ghana Gold Board to eliminate accounting losses while protecting environmental standards? While the $1.7 billion IMF loss reflects the high price of currency intervention, citizens and analysts alike agree that permanent success depends on stopping galamsey at the source and closing the $11.4 billion smuggling drain for good.

     

  • Chief of Staff urges mining sector reforms to reflect Ghana’s mineral wealth in host communities

    Chief of Staff urges mining sector reforms to reflect Ghana’s mineral wealth in host communities

    Government has issued a firm call to stakeholders across the mining sector, declaring that historic mining communities like Obuasi must reflect the immense wealth extracted from their soil.

    Speaking at the National Mining Dialogue in Accra, Chief of Staff Dr. Julius Debrah, in a speech delivered on his behalf by Deputy Government Spokesperson Shamima Muslim, emphasized that as the world’s sixth-largest gold producer, Ghana bears a heavy responsibility to ensure its wealth is visible in local infrastructure and human development.

    “We have heard that Ghana is now the 6th largest gold-producing country in the entire world,” Dr. Debrah noted in his keynote address. “We may applaud, but that also brings us huge responsibility to look like the 6th largest gold-producing nation of the world. Government remains committed to lawful, responsible mining and enforcement; each matter must be handled fairly on evidence and through the proper institution.”

    The Chief of Staff’s remarks underscored a growing national consensus that decades of mineral extraction must no longer leave host towns lagging behind in basic infrastructure and industrial growth. Calling for a shift from unsafe practices to structured, transparent systems, Dr. Debrah reiterated that the public will ultimately judge the country’s mining sector by the tangible wealth retained domestically and the strength of national reserves.

    “Formalisation must not become a war against vulnerability and security,” he added. “From an opaque market to a fair market and from unsafe practices to responsible livelihoods, the artisanal miner should hear reforms and an invitation to operate safely, lawfully, and profitably.”

    Echoing the Chief of Staff’s charge, Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, highlighted the stark reality of host communities like Obuasi, drawing a sharp contrast between long-standing local extraction and the actual transformation on the ground.

    “We cannot continue to mine gold from the soil of our communities while poverty, lack of access to potable water, poor roads, youth unemployment, and weak local capacity persist,” Gyamfi stated. “Ghana has mined gold commercially for more than a century, yet Obuasi can produce gold for generations and still not compare to Johannesburg in industrial depth, urban development, and economic opportunities. Extraction without intentional policy does not automatically produce transformation.”

    Gyamfi argued that host communities should be treated as active development partners and economic shareholders rather than mere land donors. Under the central framework of the Ghana Gold Board, government efforts aim to build value by strengthening local processing, refining, and supply chain logistics.

    As state agencies, mining operators, and local leaders assess the road ahead, the consensus remains clear: policy reforms under GoldBod and the Domestic Gold Purchase Programme must deliver visible, lasting progress to communities like Obuasi so that their infrastructure finally mirrors the gold beneath their soil.

     

  • GoldBod launches major supply-chain mapping initiative to trace Ghana’s gold movement

    GoldBod launches major supply-chain mapping initiative to trace Ghana’s gold movement

    By Adnan Adams Mohammed

     

    Ghana has set in motion an ambitious data-tracking campaign to map, compile, and analyze the flow of gold across the nation’s entire precious minerals value chain.

    The sweeping effort led by the newly formed Ghana Gold Board (GoldBod) is designed to give authorities full visibility over the movement of gold from mining sites to local refineries and final export destinations, effectively plugging systemic revenue leaks and shutting down illicit trade channels.

    According to GoldBod Chief Executive Officer, Sammy Gyamfi, establishing a secure, data-backed map of the industry is essential to ensuring the state captures the full economic value of its natural resources.

    “Effort is underway to map, compile, and analyze comprehensive data on how gold moves through Ghana’s value chain from extraction sites to local buyers, refineries, and export markets,” Gyamfi stated.

     

    A Surge in Domestic Value Addition

    The drive to map the supply chain coincides with major strides in domestic processing. GoldBod revealed that it has successfully processed 7.1 metric tonnes of domestically purchased gold through local refineries this year alone, marking a decisive structural shift away from the historical practice of exporting raw, unrefined bullion.

    Highlighting the expanding capacity and reliance on domestic refining infrastructure, Gyamfi underscored the direct impact of recent structural reforms:

    “7.1 metric tonnes of gold bought by GoldBod this year were refined in Ghana,” Gyamfi confirmed, pointing to local value addition as a cornerstone of the country’s economic strategy.

     

    Transitioning Post-Central Bank Program

    The national data-mapping initiative and expanded purchasing mandate mark a new phase in Ghana’s gold governance, following the sunset of earlier interventionist models.

    Gyamfi clarified the evolution of the state’s purchasing mechanisms, noting that GoldBod has fully taken over the regulatory, purchasing, and export operations previously handled under temporary central bank frameworks.

    “The Domestic Gold Purchase Program was a Bank of Ghana initiative; it ended in March 2026,” Gyamfi explained, noting that GoldBod now provides a permanent, centralized institutional structure to oversee the market.

     

    A Broad Policy “Reset”

    Industry analysts believe that combining rigorous supply-chain data mapping with mandatory local refining will provide the state with unprecedented visibility over its mineral wealth, dramatically reducing smuggling and under-declaration across artisanal and commercial mining sectors alike.

    Attributing the current momentum to top-level policy direction, the GoldBod Chief Executive expressed optimism that the unified strategy of real-time tracking, local processing, and centralized oversight will fundamentally alter the economics of Ghana’s mining industry.

    “President Mahama has reset Ghana’s gold sector,” Gyamfi remarked, emphasizing that the aggressive push for full traceability and in-country value creation will guarantee significantly higher financial returns for the nation.