Ghana Gold Board Defended as Best Approach to Managing Country's Gold Resources

Kofi Bentil, Senior Vice-President of IMANI Africa, has defended the Ghana Gold Board (GoldBod) as the best way to manage the country's gold resources. Speaking on JoyNews' Newsfile, he said that while GoldBod is not perfect, it represents an improvement over a previous arrangement where the Bank of Ghana was directly involved in gold trading.

Bentil explained that under the old system, the central bank bore the financial consequences of gold transactions. However, this created problems for the Bank of Ghana, which has primary responsibilities for monetary and financial stability.

He argued that separating commercial risks from the central bank was a key factor in calls for a new model. Now, GoldBod is transitioning to have its own capital and operate more independently from the Bank of Ghana, assuming commercial risks and rewards associated with gold purchasing and trading activities.

Bentil acknowledged that there are still areas for improvement but rejected suggestions that establishing GoldBod was a policy mistake. He maintained that the institution demonstrates the need for an entity capable of managing the country's gold resources.