The Institute of Economic Research and Public Policy (IERPP) has flagged the Ghana Gold Board’s (GoldBod) Domestic Gold Purchase Program alleging that the initiative disadvantaged the local miners.
While the country’s mining industry continues its upward trajectory, with gold exports soaring, a prominent think-tank, IERPP doubts the relevance of the program and its impact on the country’s mining community.
According to Dr. Kwasi Nyame-Baafi, a Senior Research Fellow at IERPP, data paints a grim picture, revealing that while the gold sector witnessed a 33.6% increase in 2025 compared to the previous year’s 19.1%, the government’s approach to gold pricing and purchasing through the GoldBod should be critically scrutinised.
“So what this is telling us is that not only is mining activities increasing in Ghana, but we are also impoverishing even the miners. Now the key question that we should be asking ourselves is that since Ghana Gold Board is buying at 1.4 cedis, but selling at an international market price of $130,000 or 1.5 million Ghana Cedi, that difference per kilo, how much is that difference per kilo? Hundred and what? About 160,000 Ghana Cedis.”
Dr. Kwasi Nyame-Baafi
Dr. Nyame-Baafi also questioned the Gold Board’s sourcing of gold, warning that if care is not taken, the initiative may significantly escalate the illegal mining activities in the country.
According to him, ” the data is showing that this year alone, activity that is ongoing in the gold sector is way more than what was happening last year. So there is an urgent need to ensure that policies and initiatives are put in place to make sure that we are actually or we are promoting more of legal mining activities rather than illegal mining activities.”
The GoldBod Dilemma
From IERPP’s data, the Gold Board is buying gold from miners at a significantly lower price than the prevailing international market rate.
“The Gold Board is saying that they are going to buy the gold at 1.4 million, isn’t it? During the tenure of the previous government, gold prices were not determined by any government institution. Gold prices were competitive. That means you could actually buy gold at market price.”
Dr. Kwasi Nyame-Baafi
Allocation of Profits
The Institute of Economic Research and Public Policy’s (IERPP) analysis goes beyond the immediate impact on miners, raising probing questions about the government’s handling of the significant profits generated by the GoldBod.
With Ghana’s gold exports reaching over 100 tonnes this year, the think tank estimates that the GoldBod’s profit margins could amount to a staggering 60 billion Ghana Cedis.
Dr. Kwasi also lamented that while the Board is “buying at a market price of about 1.4 billion per kilo, the world market price is about $130,000.”
Government is making these billions and billions of Ghana Cedi. But again, you come to the revenue records, and we are still making revenue shortfalls. So where is this money growing into? Who is actually making those monies? Or these gains?” he questioned.
The stark contrast between the GoldBod’s purchase price and the international market price, which stands at around $130,000 per kilogram, has raised serious concerns.
The IERPP’s calculations show that for every kilogram of gold purchased, the GoldBod is making a profit of approximately 160,000 Ghana Cedis, effectively impoverishing the miners who should have been earning more.
The IERPP’s findings underscore the urgent need for the government to address the concerns raised, ensure transparency in the allocation of profits, and implement policies that protect the interests of the mining community.
While the mining industry grapples with these revelations, the institute’s role in shaping responsible governance and evidence-based policymaking remains crucial.
READ ALSO: SML Scandal: Court Sets Nov. 24 Arraignment for Ofori-Atta and 7 Others
