Economist Professor Godfred Alufar Bokpin cautions against crediting the Ghana Gold Board (GoldBod) as the primary cause of Ghana’s recent macroeconomic stability. He states that broader economic gains result from effective fiscal and monetary policy decisions.
Professor Bokpin acknowledges GoldBod’s important role in bringing gold-related foreign exchange into the formal economy. The initiative has successfully reduced gold smuggling and increased foreign exchange retention in Ghana. However, he argues that the domestic gold purchase arrangement has incurred significant financial losses that require careful consideration.
This assessment fits into Ghana’s ongoing economic narrative, which seeks to balance revenue generation with fiscal prudence. Both the New Patriotic Party (NPP) and the National Democratic Congress (NDC) identified challenges in illegal mining and gold export reporting before the 2024 elections. The NPP proposed reducing the final withholding tax on gold exports from artisanal and small-scale mining. The NDC established GoldBod as the main entity for buying and exporting gold from these miners.
“You can see that the gap has narrowed significantly with the introduction of Gold Board. And I think that is a credit to Gold Board,” Professor Bokpin stated. He further explained that macroeconomic stability is the responsibility of monetary and fiscal authorities, specifically the Bank of Ghana. GoldBod’s mandate does not extend to ensuring overall economic stability.
The economist highlights that the domestic gold purchase program, fronted by GoldBod since 2025, has come at a significant financial cost. He cited reported losses, suggesting the overall cost could exceed currently discussed figures. Professor Bokpin mentioned potential losses of GHS 22 billion or GHS 1.7 billion, but believes a holistic approach reveals even higher costs. He also pointed to the abolition of the 1.5% withholding tax on artisanal and small-scale gold production as another state cost. These fiscal implications become substantial when considering over $10 billion in gold exports from artisanal small-scale miners, representing potential revenue for public services.
Professor Bokpin recognizes GoldBod’s positive impact in formalizing gold-related foreign exchange. He insists, however, that the substantial losses should not be overlooked. He noted that the government, GoldBod, and the Bank of Ghana acknowledge these losses are unsustainable. An exit plan is now in motion to reduce these losses from about 17% or 14.5% to approximately 5% going forward. This move aims to mitigate the financial burden while preserving the benefits of formalizing gold trade.