Ghana’s gold purchase programme failed to deliver expected financial benefits in 2025, despite a 62.9% rise in international gold prices. Former Finance Minister Dr. Mohammed Amin Adam confirmed the programme incurred substantial losses during this period.
The Karaga MP explained that gold prices surged from an average of US$2,395 per ounce to US$3,441 in 2025. This represented one of the strongest years for gold in decades. However, the national programme continued to record significant financial setbacks.
This outcome highlights ongoing challenges in Ghana’s commodity management strategies. The country aims to build its gold reserves and stabilize the cedi through such initiatives. However, operational inefficiencies can undermine these broader economic goals, impacting public finance and foreign exchange accumulation.
Dr. Amin Adam stated, “This was not the market’s fault.” He identified three main cost components: exchange-rate differences, discounts to foreign buyers, and handling fees. These factors directly contributed to the programme’s poor financial performance.
The programme’s financial woes have significant implications for Ghana’s economy. Decision-makers must address these structural issues to prevent further losses. Future policy adjustments will likely focus on improving operational efficiency and securing better terms for gold sales. This situation also impacts public confidence in state-backed economic initiatives.
One major issue involved exchange rate differences. The Bank of Ghana advanced cedis at the official interbank rate. However, GoldBod, the entity purchasing gold from miners, paid miners at higher rates available through forex bureaus. Dr. Amin Adam stated, “The Bank absorbed that gap on every purchase,” indicating a direct financial burden on the central bank.
Another critical factor was the discount offered to foreign buyers. Ghana sold gold in October 2025 at US$3,919 an ounce. This was significantly lower than the world average of US$4,054 per ounce at that time. Dr. Amin Adam emphasized that this discount represented a substantial cost to the nation. He remarked, “A discount to foreign buyers… is money that never reached Ghana.”
Further costs included a 0.5% service fee and a 0.258% assay fee. These fees were charged on the full value of transactions, adding to the overall financial drain. These operational charges further eroded any potential profits from the rising gold prices. The cumulative effect of these costs negated the benefits of a strong global gold market.
The former minister’s revelations underscore the need for greater transparency and accountability in state-managed programmes. Addressing these systemic issues is crucial for Ghana to maximize returns from its natural resources. The government must review the programme’s structure to ensure it benefits the national economy. This includes scrutinizing all costs and revenue streams.
The financial performance of the gold purchase programme directly affects Ghana’s foreign exchange reserves. A programme designed to boost these reserves instead incurred losses, creating a fiscal challenge. This situation demands immediate attention from economic policymakers. They must implement measures to safeguard public funds and optimize resource utilization.
The findings also raise questions about the oversight mechanisms in place. Ensuring robust financial controls and regular audits is essential for such large-scale initiatives. Ghana’s economic stability depends on efficient management of its key sectors. Learning from these losses will be vital for future economic strategies.