Ghana's GoldBod Program Hit by Cash Crunch Amid Tighter Funding

Ghana's GoldBod program, which aims to curb gold smuggling and boost foreign currency inflows, is facing a cash crunch. The program, which gives the agency exclusive rights to buy, sell, and export artisanal gold, relies heavily on commercial banks and gold importers for funding.

The central bank initially funded GoldBod's purchases but withdrew its support after the program generated losses. The IMF pushed for this change in financing. Now, GoldBod is struggling to secure advances from commercial banks and gold importers due to tighter funding conditions.

According to reports, some companies licensed to buy gold for GoldBod have stopped trading altogether while others are borrowing money to keep up with their commitments. The delays range from one week to three weeks, affecting the program's ability to purchase gold from artisanal miners.