The Institute of Economic Affairs (IEA) has urged the government to increase the mandatory percentage of gold that the Ghana Gold Board (GoldBod) purchases from large-scale mining companies from the current 30 percent to 50 percent.
According to the economic policy think tank, increasing GoldBod’s access to locally produced gold should form part of a broader strategy to strengthen government control over Ghana’s mineral resources and natural wealth.
The IEA said the proposed 50 percent allocation should be considered after the existing 30 percent policy has become fully established and stable. It also wants GoldBod to transition from primarily being a gold trading institution into a strategic national asset manager capable of creating greater long-term economic value from Ghana’s gold resources.
The recommendation was contained in the IEA’s assessment of the 2026 Mid-Year Budget Review. The report was presented in Accra by the institute’s Director of Research, Prof. Alexander Bilson Darku, during a press conference.
GoldBod and Ghana’s Foreign Exchange Reserves
The proposed increase in mandatory gold purchases could significantly expand GoldBod’s access to gold produced by large-scale mining companies.
The IEA believes this could increase the volume of gold available to support Ghana’s foreign exchange reserves, strengthen the country’s balance of payments and help reduce pressure on the Ghanaian cedi.
The Domestic Gold Purchase Programme has become an important part of the government’s economic strategy, particularly in efforts to increase gold exports, improve foreign exchange inflows and strengthen international reserves.
However, the IEA warned that GoldBod’s expanding responsibilities must be supported by stronger financial accountability, transparency and risk management.
IEA Raises Concern Over US$1.7 Billion Gold Programme Loss
The institute also called on the government to recognise the reported US$1.7 billion quasi-fiscal loss associated with the 2025 Domestic Gold Purchase Programme on the government’s balance sheet.
The IEA said this should be done in line with a recommendation attributed to the International Monetary Fund (IMF).
According to the policy institute, the reported financial losses should not be ignored as GoldBod expands its operations and assumes a greater role in managing Ghana’s gold resources.
The IEA said the experience with the domestic gold purchase programme highlights the importance of distinguishing between using gold as a strategic national asset and relying too heavily on gold to support the national currency.
Gold Exports Support Cedi Stability
The IEA acknowledged that GoldBod has contributed to higher gold exports and foreign exchange inflows, helping to support exchange-rate stability and the accumulation of international reserves.
However, the institute cautioned that excessive dependence on gold could expose Ghana’s economy to significant risks because the country remains vulnerable to commodity price fluctuations and external economic shocks.
To reduce these risks, the IEA called for a broader economic strategy that combines Ghana’s gold programme with stronger export promotion, import substitution, industrialisation and increased local ownership.
The institute stressed that gold should support Ghana’s economic development rather than become the country’s only major source of foreign exchange.
GoldBod Must Avoid Past Mistakes
The IEA also warned GoldBod against repeating problems experienced by other gold trading institutions internationally.
Referring to the Guyana Gold Board, the institute said Ghana must learn from international experiences involving alleged price manipulation, inadequate transparency and corruption.
“GoldBod must not repeat these mistakes,” the institute cautioned.
The IEA argued that expanding GoldBod’s access to gold produced domestically should be accompanied by wider reforms to Ghana’s natural-resource management and mining sector.
IEA Wants Greater State Ownership of Natural Resources
Beyond increasing GoldBod’s gold purchases, the IEA proposed a major rethink of Ghana’s approach to managing its natural resources.
Rather than depending mainly on royalty payments from mining companies, the institute suggested that the state should consider taking greater ownership of mineral resources, while mining companies could be contracted to undertake extraction on behalf of the government.
The IEA also called for increased local processing and value addition in the mining industry.
Such an approach, it said, could ensure that a greater proportion of the wealth generated from Ghana’s mineral resources remains within the domestic economy.
According to the institute, increased state participation in the mining sector could help government capture a larger share of resource revenues while improving fiscal management, economic development and debt sustainability.
Ghana’s Economic Recovery Must Go Beyond Gold
The IEA’s recommendation comes at a time when the government is seeking to maintain recent gains in economic stabilisation while avoiding excessive dependence on gold.
The IMF’s latest assessment reportedly indicated that Ghana’s expanded domestic gold purchase programme generated more than US$1.7 billion in losses in 2025, even as the programme contributed significantly to gold exports and foreign exchange reserve accumulation.
The IEA said the key challenge for policymakers is to ensure that the economic benefits generated by the gold programme outweigh its fiscal and operational costs.
The institute further noted that Ghana has made considerable progress in restoring economic stability, but warned that the gains must be transformed into sustainable and long-term structural economic development.
IEA Calls for Transformational Budgeting
The policy think tank warned Ghana against returning to a cycle where fiscal discipline restores economic stability, only for renewed fiscal indiscipline to create another economic crisis.
It therefore called for a transition from “stabilisation budgeting” to “transformational budgeting.”
Under this approach, government spending should place greater emphasis on productive sectors, industrialisation, manufacturing, value addition, infrastructure, private-sector development and sustainable job creation.
The IEA believes this would help Ghana move beyond short-term economic recovery towards stronger and more sustainable economic growth.
GoldBod’s Future Role in Ghana’s Economy
For GoldBod, the IEA’s recommendation means that increasing its mandatory gold purchases from large-scale mining companies to 50 percent should not simply result in the government purchasing more bullion.
Instead, the institute believes the next phase of GoldBod’s development should focus on creating a transparent, accountable and strategically managed national gold asset.
Such an approach could help strengthen Ghana’s foreign exchange reserves while also supporting economic diversification and long-term financial stability.
The IEA maintained that gold should continue to play an important role in Ghana’s economic strategy and currency stability. However, the country should avoid making gold the single foundation of its foreign exchange position, economic resilience and future economic growth.
Source: newsthemegh.com