It’s disappointing that Ghana can’t make profit from gold – Prof. Bokpin

Professor Godfred Bokpin of the University of Ghana Business School has described reports of losses incurred by the Bank of Ghana (BoG in its gold-related operations as deeply troubling, arguing that they highlight longstanding structural weaknesses in Ghana’s gold sector.

Speaking on Key Points on TV3 on Saturday, December 27, Prof. Bokpin said the controversy surrounding GoldBod and the BoG exposes fundamental problems in pricing, regulation, and mining practices, particularly within the artisanal and small-scale mining (ASM) space.

“The way GoldBod and the Bank of Ghana have responded to this issue reflects the deeper challenges in the sector, especially in how gold pricing and operations are structured,” he said. “For decades after independence, Ghana has struggled to do responsible mining. The data clearly show that artisanal and small-scale mining has largely been conducted irresponsibly.”

He added that it was disappointing that even after Ghana decided in 2025 to directly purchase and export gold, the programme was reportedly unable to break even. “That is very sad for us as a country,” he noted.

Also contributing to the discussion, economist Dr Patrick Asuming said concerns raised by the International Monetary Fund (IMF) about the financial risks associated with the Domestic Gold Purchase Programme (DGPP) were legitimate and deserved serious attention.

Dr Asuming stressed the need for continuous assurance from GoldBod and the central bank that the programme is not worsening environmental degradation. “I think it is a legitimate concern raised by the IMF,” he said, adding that environmental and financial risks must be addressed transparently.

He further criticised the Bank of Ghana’s response to reports of losses, accusing it of speculation. According to him, the BoG’s statement did not directly dispute the factual basis of the claims. “Your response itself is also speculative; the BoG statement did not dispute the claim,” he argued.

The Bank of Ghana has described reports that it incurred losses due to GoldBod operations as speculative. The IMF, in its latest review, flagged the reported losses as a potential downside risk to Ghana’s macroeconomic stabilisation efforts, attributing them to transactions involving ASM doré gold and what it termed “GoldBod off-taker fees.”

Ghana successfully completed the fifth review of its IMF-supported programme on December 17, 2025. In IMF Country Report No. 25/343, the Fund acknowledged significant macroeconomic progress and commended measures taken to realign the programme after policy setbacks in 2024.

According to the BoG, the IMF review confirmed marked improvements in the macroeconomic environment, with real GDP growth exceeding expectations, inflation declining faster than projected into the Bank’s target range, and international reserves expanding steadily. Tentative data as of mid-December 2025 suggest reserves could exceed US$13 billion by the end of the year.

The central bank said that while the IMF highlighted financial risks linked to the DGPP, these should be viewed in the context of the programme’s broader macroeconomic benefits. It noted that the DGPP has supported reserve accumulation, enhanced currency stability, and enabled access to foreign exchange without additional borrowing. The BoG also emphasised GoldBod’s role as an aggregator, helping channel gold from the small-scale mining sector into the formal market.

In addition, the BoG pointed to reforms under its new foreign exchange operations framework, which the IMF described as a critical step toward improving transparency and aligning with global best practices.

Acknowledging both the benefits and costs of the DGPP, the Bank said its Board has approved reforms aimed at improving pricing and operational efficiency, particularly in the downstream segment of the programme. These reforms are expected to take effect from January 2026 and will focus on reducing intermediation fees, improving cost efficiency, and ensuring economically sound buying prices.

Finally, the BoG said its annual external audit is still ongoing, cautioning that any figures cited regarding losses from gold operations in 2025 remain speculative. The Bank noted that its audited financial statements, including full disclosures, will be published in accordance with statutory requirements in 2026.