Weak governance could undermine GoldBod’s 30% gold purchase policy – Financial expert

By Prince Antwi July 5, 2026

Dr Daniel Osabutey, a Senior Lecturer at the Business School of Accra Technical University, has cautioned that weak governance and institutional inefficiencies could undermine the government’s policy requiring large-scale mining companies to sell 30 per cent of their gold production to the Ghana Gold Board (GoldBod).

According to the financial expert, although the policy has the potential to strengthen Ghana’s economy, its success will depend on transparent governance, sound financial management and efficient institutional operations.

The policy mandates large-scale mining companies to sell 30 per cent of their gold output to GoldBod as part of government efforts to boost Ghana’s foreign reserves, support macroeconomic stability and maximise the value derived from the country’s mineral resources.

Dr Osabutey described the initiative as one of the most significant reforms to Ghana’s mineral resource management in recent decades. He said it represents a shift from exporting most of the country’s gold with limited domestic benefits to treating the mineral as a strategic national asset.

He explained that channelling a portion of Ghana’s gold production into the Bank of Ghana’s reserves could gradually strengthen the country’s foreign exchange reserves, improve investor confidence, enhance Ghana’s credit profile and provide a cushion against external economic shocks.

“Ultimately, this policy is about more than gold; it is a test of whether Ghana can transform its natural resource wealth into lasting economic resilience rather than continue exporting raw minerals while importing economic vulnerability,” he said.

Dr Osabutey also believes the policy could promote local value addition by creating sustained demand for gold refining within Ghana. According to him, expanding the country’s refining capacity could attract investment, create skilled jobs and position Ghana as a regional gold refining hub.

He further noted that settling gold transactions in Ghana cedis could reduce immediate demand for foreign currency and ease pressure on the foreign exchange market, provided the policy is supported by prudent fiscal and monetary measures.

However, he warned that governance remains the biggest determinant of the policy’s success. Weak institutional performance, poor management and a lack of transparency within GoldBod, he said, could erode public trust and undermine the initiative.

The financial expert stressed the need for operational efficiency throughout the gold purchasing process, including procurement, transportation, refining, quality assurance and reserve management.

He also identified financing as a major challenge, explaining that acquiring 30 per cent of Ghana’s gold output would require substantial and reliable funding. Any delays in paying mining companies, he cautioned, could disrupt production, affect business operations and weaken investor confidence.

While describing the agreed 0.55 per cent discount on gold purchases as commercially reasonable, Dr Osabutey noted that mandatory domestic sales could still raise concerns among investors about commercial flexibility.

To ensure the long-term success of the policy, he called for GoldBod to operate under strong corporate governance principles, backed by independent audits, transparent reporting and robust institutional oversight.

He also recommended sustained engagement with mining companies and increased investment in refining infrastructure, technical expertise and logistics to maximise value addition within Ghana.

Dr Osabutey concluded that the success of the policy should not be judged solely by the amount of gold accumulated in the Bank of Ghana’s reserves, but by its broader impact on the economy, including a more stable cedi, stronger industrial growth, increased investor confidence and improved living standards for Ghanaians.