Ghana’s state-owned gold purchasing entity, GoldBod, incurred a GHS 20.4 billion ($1.7 billion) loss, which a leading policy analyst says is justified by the programme's foreign exchange gains. Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), argues this financial outlay is a necessary transaction cost for broader economic benefits.
Dr. Manteaw explained that the losses should not be viewed in isolation. He highlighted that previous governments also faced high costs with their gold purchase programmes. The GHEITI Co-Chair stated that Ghana recorded losses in 2022, 2023, 2024, and 2025 from gold-related initiatives. These earlier losses did not attract the same level of public concern, he noted.
This perspective places GoldBod’s performance within a historical context of state-backed gold interventions. Ghana has consistently sought to leverage its gold resources for economic stability. The current programme aims to bolster foreign exchange reserves and stabilise the local currency. This strategy is crucial for managing import costs and supporting economic planning in a developing nation.
“If you had to incur a loss of $1.7 billion to bring in $10 billion, that for me shouldn’t be a problem,” Dr. Manteaw stated. He described these financial outflows as transaction costs, which all governments have historically incurred. The key issue, he stressed, is the value generated from the expenditure, not just the loss figure itself. This approach considers the overall economic impact rather than just the balance sheet.
The wider impact of GoldBod’s operations, according to Dr. Manteaw, far outweighs its direct financial cost. He pointed to improved foreign exchange stability as a major benefit. This stability allows businesses to plan more effectively and reduces the cost of imports. Lower import costs, in turn, create new investment opportunities across various sectors of the economy.
Dr. Manteaw also linked this stability to broader macroeconomic improvements. He suggested that it could contribute to lower inflation and reduced interest rates. These conditions are fundamental for establishing a strong foundation for sustained economic growth. Such stability is also vital for the government’s ambitious 24-hour economy initiative. Incentives can encourage businesses to import necessary machinery, benefiting from the stable currency environment.
Acknowledging concerns about the sustainability of these losses, Dr. Manteaw explained GoldBod’s initial market entry strategy. GoldBod faced an established market dominated by foreign buyers. These buyers, including Indian and Chinese entities, provided resources to Ghanaian miners in exchange for gold. This created a competitive landscape where GoldBod had to offer attractive terms.
To penetrate this market, GoldBod had to offer competitive prices. This often meant buying gold at market rates, sometimes even using higher forex bureau rates. In contrast, some foreign buyers secured gold at a discount. This disparity created an unrecovered cost for GoldBod. The losses, therefore, reflect the challenging circumstances of establishing a presence in a pre-existing market structure. The programme’s mandate was to regulate gold trade and secure national reserves. The financial outcomes must be understood within this operational context.
In 2024 alone, Ghana incurred a total loss of GHS 68.4 billion ($5.7 billion) from gold-related programmes. This included GHS 21.6 billion ($1.8 billion) from the Gold for Oil initiative and GHS 45.6 billion ($3.8 billion) from domestic gold for reserves. These figures underscore the significant financial commitments involved in Ghana’s gold sector strategies. The ongoing debate highlights the complex trade-offs between immediate financial losses and long-term economic stability.