The Ghana Gold Board (GoldBod) has announced plans to reduce and ultimately eliminate the operational costs associated with the Gold-for-Reserves (G4R) programme, a strategic initiative that has significantly boosted Ghana’s foreign exchange reserves in 2025.

Introduced to formalise gold trading and maximise the sector’s contribution to the national economy, the G4R programme has played a key role in mobilising foreign exchange while strengthening support for the small-scale mining sector.

Under the initiative, GoldBod purchases gold from licensed aggregators and small-scale miners at competitive market prices. This approach has helped draw informal gold trading into the formal economy, improved traceability, and created a reliable revenue stream for the state.

Although the programme has delivered notable economic gains, GoldBod acknowledged that it has come with operational costs. According to the Chief Executive Officer, these costs, while undesirable, are unavoidable due to the programme’s strategic design.

“The G4R programme deliberately applies realistic market incentives to encourage participation by small-scale miners and aggregators, ensuring optimal foreign exchange accumulation for the country,” the CEO explained.

To address cost concerns, GoldBod, in collaboration with the Bank of Ghana and the Ministry of Finance, is developing a comprehensive policy blueprint for the programme. Scheduled for rollout in 2026, the new framework is expected to streamline operations and reduce costs without undermining the programme’s effectiveness or economic benefits.

The Board is also engaging key stakeholders in the small-scale mining sector, including the Ghana National Association of Small-Scale Miners and the Concerned Small-Scale Miners Association, to develop pricing regulations. These discussions are aimed at agreeing on an acceptable minimum discount rate for local gold purchases that balances fair compensation for miners with the long-term sustainability of the programme.

Once finalised, the proposed regulations will be submitted to Parliament for approval, establishing a formal legal framework to guide the G4R programme in the years ahead.

GoldBod said the reforms form part of a broader strategy to build a cost-efficient, transparent and sustainable gold trading ecosystem in Ghana. Through policy reforms, stakeholder collaboration and enhanced oversight, the Board aims to ensure that the G4R programme continues to deliver economic value while advancing the formalisation of small-scale mining and safeguarding national financial and environmental interests.

With these measures, GoldBod is positioning the Gold-for-Reserves programme as a regional model for responsible gold trading, traceability and inclusive economic growth in West Africa.