Ghana's Gold Board (GoldBod) recorded a combined loss of GHS 68.4 billion in 2024 from its Gold for Oil initiative and domestic gold purchases for reserves. This significant financial outcome has drawn criticism, but a leading policy analyst argues it represents necessary transaction costs for broader economic benefits.
Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), challenged public concern over these losses. He stated that Ghana has incurred similar losses from gold purchase programs in previous years, specifically in 2022, 2023, and 2025, without comparable public outcry. Dr. Manteaw emphasized that the GHS 68.4 billion loss in 2024, comprising GHS 21.6 billion from Gold for Oil and GHS 46.8 billion from domestic gold purchases, should be viewed in context.
This situation fits into Ghana's ongoing efforts to stabilize its currency and manage foreign exchange reserves. The nation's gold export revenue in 2024 was GHS 48 billion, significantly lower than the value of the transactions cited by Dr. Manteaw. Ghana has historically relied on commodity exports, including gold, to generate foreign exchange. Past programs aimed at increasing state control over mineral resources have faced operational challenges and market volatility.
“We make it look like this is the first time Ghana is making losses in its gold purchase program,” Dr. Manteaw stated. He further explained, “I’ve looked at the data. 2022, we made a loss. In 2023, 2024, and 2025, we incurred losses each year. Why didn’t that become a problem?” He argued that these losses are transaction costs incurred to secure substantial foreign exchange for the economy, leading to benefits like foreign exchange stability, lower import costs, reduced inflation, and lower interest rates.
The implications of GoldBod's operations extend to Ghana's economic stability and future investment climate. Decision-makers will need to weigh the direct financial losses against the broader macroeconomic benefits, such as currency stabilization. The government must also consider the sustainability of incurring such costs to secure foreign exchange. GoldBod initially faced challenges penetrating a market dominated by foreign buyers who offered financing to miners. To attract local miners, GoldBod had to offer competitive prices, sometimes exceeding market rates, leading to uncovered costs. This strategic decision aimed to formalize gold trade and increase state revenue, but its long-term financial viability remains a key area for scrutiny and policy adjustment.