Ghana's $1.7 Billion Gold Purchase Program Exposed: A Tale of Controversy and Loss

The Bank of Ghana's (BOG) Domestic Gold Purchase Program (DGPP), which aimed to stabilize the gold market and reduce smuggling, has been marred by controversy. According to a recent article, the program, which was introduced in June 2021, had two legs: the Gold for Reserve (G4R) leg, which involved large-scale mining companies, and the Gold for Oil (G4O) leg, which targeted small-scale miners.

The G4O leg of the program, operated by the Precious Minerals Marketing Company (PMMC), was responsible for a loss of $1.7 billion, according to BOG's balance sheet. However, an investigation by Parliament may reveal that the loss was due to necessary acts taken by GoldBod, which took over from PMMC in 2025, to reduce smuggling and entice operators in the small-scale mining sector with premium prices.

GoldBod, led by CEO Sammy Gyamfi, implemented a new system of aggregators to purchase gold at higher rates than those used by BOG for the G4R leg. This move brought significant economic gains to Ghana, but also increased costs associated with assay and smelting fees, which were approved by Parliament.

While GoldBod's efforts have been praised by some, including President Mahama, who called them 'magic', others, such as Dr Bawumia, have criticized the program. The controversy surrounding the DGPP has sparked calls for a parliamentary probe into the matter.