Dr. Daniel Osabutey, a Senior Lecturer at Accra Technical University's Business School, has warned that weak governance could undermine the Ghana Gold Board’s (GoldBod) new policy. This policy requires large-scale mining companies to sell 30% of their gold output to the state. He highlighted institutional inefficiencies as a significant threat to the policy’s success.
The government designed the policy to boost Ghana’s foreign reserves and support macroeconomic stability. It aims to increase the value Ghana gains from its mineral resources. Dr. Osabutey noted that the policy seeks to transform Ghana's gold wealth into a strategic national asset. Historically, Ghana has largely exported raw gold with limited domestic benefits.
This initiative represents one of the most significant changes to Ghana's mineral resource policy in recent decades. Directing part of gold production into the Bank of Ghana’s reserves could strengthen foreign currency holdings. It could also improve investor confidence and Ghana's external credit profile. This would provide a buffer against global economic shocks.
Dr. Osabutey, a financial expert, stated that the policy’s success depends on transparency, financial discipline, and effective institutional management. He explained that purchasing 30% of Ghana’s gold output requires substantial and reliable funding. Delays in payments to mining companies could disrupt their operations and weaken investor confidence, he added.
He further suggested that the policy could encourage local value addition. Creating consistent demand for gold refining within Ghana could attract investment. This would also create skilled job opportunities. Ghana aims to become a regional gold refining hub.
Conducting gold transactions in Ghana cedis (GHS) could reduce demand for foreign currency. This would ease pressure on the foreign exchange market. However, this requires sound fiscal and monetary policies.
Despite an agreed 0.55% discount on gold purchases, mandatory domestic sales could concern investors about commercial flexibility. GoldBod must operate under high standards of corporate governance, Dr. Osabutey stressed. This includes independent audits, transparent reporting, and strong institutional oversight.
He recommended continuous engagement with mining companies. Investment in refining infrastructure, technical expertise, and logistics is also crucial to maximise in-country value. The policy's ultimate success will be measured by its contribution to a stronger economy and a more stable GHS. It should also lead to increased industrial capacity, improved investor confidence, and better living standards for Ghanaians.