Ghana’s domestic gold purchase programme, implemented through GoldBod, has sparked debate over its financial implications and broader economic impact.
While the Bank of Ghana (BoG) reported a US$214 million loss in the programme, experts argue the benefits outweigh the costs.
Dr. Steve Manteaw, a natural resource governance expert, attributes the loss to the BoG’s decision to buy gold at zero discount, a strategy aimed at discouraging smuggling.
“The loss is less than 3% of the forex income from exports,” he notes. The programme has helped BoG build record gold reserves, stabilising the cedi and contributing to declining inflation and interest rates.
“The net benefit of the reported losses is the over US$10 billion earned from gold exports, which is doing magic to the entire Ghanaian economy,” Dr. Manteaw noted while recommending using part of the windfall to support domestic production, reduce food imports, and diversify exports.
IMF Concerns
However, the IMF has expressed concerns over the programme’s risks, citing “significant downside risks” and potential pressure on BoG’s balance sheet and monetary policy credibility.
The Fund notes that operational costs from GoldBod, alongside trading shortfalls, have been identified as the major drivers behind losses under the Bank of Ghana’s Gold-for-Reserves (G4R) programme, which climbed to US$214 million within the first nine months of 2025.
The disclosure is contained in the International Monetary Fund’s Fifth Review report on Ghana’s three-year Extended Credit Facility (ECF) programme, which flags the losses as a key downside risk to the country’s broader stabilisation agenda.
According to the Fund, the losses were largely driven by trading losses incurred under the artisanal and small-scale mining (ASM) doré gold transactions component of the programme, as well as off-takers’ fees linked to GoldBod operations.
“In 2025 through end-Q3, losses from the artisanal and small-scale (ASM) doré gold transactions component of G4R have reached US$214 million, mostly on trading losses but also on GoldBod off-takers’ fees,” the report stated.
IMF warns of “significant downside risks”
Beyond the reported losses, the IMF cautioned about the rapidly expanding scale of the programme, particularly since the creation of GoldBod could expose Ghana to heightened risks. The Fund noted that the “large and increasing scale of the Gold-for-Reserves programme, notably since the creation of GoldBod, is a source of significant downside risks.”
BoG’s response to IMF
Although, Ghana successfully completed the 5th Review of the IMF ECF-supported programme on December 17, 2025, the review flagged financial risks associated with the Domestic Gold Purchase Programme (DGPP), noting it helped shore up Ghana’s international reserves, supported currency stability, and enabled access to foreign exchange without incurring new debt. GoldBod an aggregator for gold-based inflows from small-scale mining, works with the Bank of Ghana to ensure DGPP remains anchored in public policy objectives.
A new foreign exchange operations framework introduced by BoG was highlighted in the IMF report as a critical reform. The framework clarifies intervention triggers, separates reserve accumulation from market intermediation, and enhances transparency, aimed at deepening confidence in FX markets.
The BoG Board recently approved reforms to improve pricing and operational efficiency of the DGPP, to be rolled out in January 2026, aligning with budgetary provisions in the 2026 national budget to ensure GoldBod’s sustainability.
The Bank of Ghana is currently undergoing an annual external audit, thereby, alluding that, figures related to gold operation losses in 2025 remain speculative, with audited financial statements to be published next year.
Other Critics
Other critics argue that the programme’s benefits are being oversold. Policy commentator, Cadman Mills, urges caution, stating, “Propaganda cannot replace evidence. Economic credibility must be earned through transparency and results, not political spin.”
In a blunt warning, Mills urged the NDC communicators to “stop touting GoldBod achievements,” arguing that the initiative is still in its infancy and far from delivering measurable, life-changing results for the Ghanaian economy. According to him, public praise without clear data risks misleading citizens and undermining trust in economic reforms.
Mills questioned claims that GoldBod has significantly stabilized the cedi or transformed gold revenue management, insisting that Ghanaians are yet to feel any real impact in their daily lives. “Propaganda cannot replace evidence,” he stressed, adding that economic credibility must be earned through transparency and results, not political spin.
Sammy Gyamfi, GoldBod’s CEO on the other hand, has consistently defended the new institution, describing it as a strategic intervention designed to maximize value from Ghana’s gold resources and reduce reliance on foreign exchange markets. Supporters of the initiative argue that early signs point to improved coordination in the gold sector and long-term benefits for national reserves.
The exchange has reignited broader debates about economic accountability and political communication, with critics accusing government communicators of overselling policies before outcomes are fully realized. Others, however, argue that public confidence requires leaders to highlight progress, even at early stages.
The debate highlights the challenges of balancing economic gains with transparency and accountability. As Ghana navigates its economic recovery, the GoldBod initiative’s success will depend on effective implementation, robust oversight, and a commitment to delivering tangible benefits for citizens.
Dr Manteaw’s expanded stances
Dr Manteaw expanded further on his earlier stance providing answers to rhetoric on; “Why will BoG / GoldBod decide to buy gold at zero percent discount?”
“The answer is simple – to discourage smuggling. The unprecedented rise in domestic gold purchases suggest that miners find it attractive to sell their gold at zero percent discount to the GoldBod.
How has this benefitted the State?
“This has helped BoG to build unprecedented volumes of gold reserves, the export proceeds of which are used to shore up our local currency. The net benefit of the reported losses from the domestic gold trade is the over US$10 billion earned from gold exports, which is doing magic to the entire Ghanaian economy. The reported loss is less than 3% of the forex income from exports.
“Forex stability has been sustained since the inception of the GoldBod. This has fed into a general decline in inflation, interest rates, and other macro indicators. Fuel prices are coming down and easing the pressure on the budgets of motorists. If drivers were to respond with a corresponding reduction in fares, food prices will come down, and living conditions will improve.
“Now juxtapose this with a GH¢9.49 billion operating loss incurred by BoG in 2024, the third consecutive year of losses, with the highest (GH¢13.23 billion) loss recorded in 2023 and with almost no economy-wide positive impact.”
Recommendations for Sustaining the Gains
Among Dr Manteaw’s recommendations to sustain the gains of the gold-for-reserves programme, he shared some worries of the IMF stating that;
“I understand why the IMF will be worried. Reliance on commodity export to support the local currency can be risky, especially during periods of global price decline.
“It is therefore imperative to use part of the current windfall to support domestic production in order to reduce demand for forex – both Nkrumah and Acheampong called it “Import Substitution.” We should again support food production to reduce food imports.
“We should diversify our exports, away from traditional commodities to include more finished and semi-processed goods.”
Consequently, Dr Manteaw concluded on the note that, “not all IMF prescriptions are in our interest. We ought to recognise that we are the reason they exist. We will take their advice but let’s blend it with our own ideas. After all, the Saudis and the Emiratis do not shore up their currencies with chocolate but with dollars earned from their oil exports.”
By Adnan Adams Mohammed
