Bank of Ghana Approves Gold Purchase Program Reforms
Ghana’s central bank has committed to overhauling its gold buying operations starting next month, targeting improved economic returns and streamlined efficiency. The Bank of Ghana board approved the changes to take effect from January 2026, with funding secured through the national budget.
The reforms address pricing and operational efficiency in the downstream segment of the Domestic Gold Purchase Programme (DGPP), according to a Thursday statement from the central bank. The institution pledged to cut intermediation fees, sharpen cost management, and establish buying prices that balance competitiveness with fiscal responsibility.
The DGPP has functioned as a strategic mechanism for building Ghana’s international reserves while supporting currency stability. The program has enabled the country to access substantial foreign exchange volumes without accumulating additional debt, the bank noted. Ghana Gold Board, known as GoldBod, operates as the primary aggregator channeling gold from licensed small scale miners into official markets.
The International Monetary Fund flagged financial risks associated with the program during its recent review of Ghana’s economic performance. According to IMF disclosures, losses from artisanal and small scale gold transactions reached $214 million by September 2025, representing roughly 0.2 percent of gross domestic product. The Fund attributed these losses primarily to trading shortfalls and board intermediary fees.
The pricing structure creates inherent gaps in revenue. GoldBod purchases gold from small scale miners at prevailing world market rates, sometimes exceeding spot prices to discourage smuggling. However, Ghana exports unrefined gold at discounts between three and five percent to account for refining, transport, and financing costs. The central bank also pays GoldBod service and assay fees totaling approximately 0.758 percent on transactions.
GoldBod Chief Executive Officer Sammy Gyamfi previously described loss reports as misleading, pointing to the board’s substantial foreign exchange generation. The organization produced over $8 billion in foreign exchange between January and October 2025, nearly doubling the $4.61 billion recorded throughout 2024.
The Bank of Ghana maintained that reported loss figures remain speculative pending completion of its annual external audit. The institution emphasized its audited financial statements will be published next year according to statutory requirements. The central bank’s statement came amid public debate about program sustainability following IMF report disclosures.
Ghana’s macroeconomic environment has improved markedly under the extended credit facility, according to the IMF assessment. Real GDP growth exceeded expectations while inflation declined faster than projected into the Bank of Ghana’s target range. Provisional data suggest international reserves could exceed $13 billion by year end, contributing to rising economic confidence.
GoldBod was established under parliamentary legislation in March 2025 with exclusive authority to purchase, assay, and export gold from licensed artisanal and small scale miners. The board received a $279 million revolving fund from government to support weekly purchases targeting three tons of gold. The organization surpassed its 2025 export target of 100 tons, generating over $10 billion in foreign exchange earnings.
The reforms align with broader efforts to formalize Ghana’s artisanal and small scale mining sector, which contributed more than 40 percent of national gold output in 2024. The January 2026 implementation will be supported by budgetary allocations designed to ensure GoldBod’s operational sustainability as the program evolves.
Source: https://www.newsghana.com.gh/