Ghana's Gold Reserve Program Faces Financial Sustainability Concerns
Ghana's financial system faced severe challenges in 2021 due to a US dollar shortage, rapid currency depreciation, and high inflation rates. Vice President Dr. Alhaji Muhammadu Bawumia introduced the Domestic Gold Purchase Program (DGPP) to address these issues by buying gold from small-scale miners at the global spot price.
The program was successful in increasing Ghana's gold reserve from 8.78 tonnes since 1958 to a peak of 30.5 tonnes by December 31, 2024. The current President, JD Mahama, continued with the program and established the GoldBod in early 2025 to take over from Precious Minerals Marketing (PMMC) in buying gold from small-scale miners.
The GoldBod's good work under the leadership of Lawyer Sammy Gyamfi Esq led to a significant increase in foreign exchange reserves, stabilizing the Cedi and reducing inflation. However, the IMF review revealed that the scaling up of the DGPP generated 1.7 billion US dollars in accounting/quasi-fiscal losses, which was 17% of the value of gold exported.
The debate surrounding the program's financial sustainability led to recommendations from the IMF for reducing operational costs and increasing transparency. The Ghana Accelerated National Reserve Accumulation Program (GANARP) aims to make GoldBod responsible for everything with the DGPP under its umbrella, effective March 2026.