Ghana Gold Board (GoldBod) has clarified that the financial costs associated with the Artisanal Small-Scale Mining (ASM) Gold for Reserve (G4R) program are intrinsic to its design as a not-for-profit policy, emphasizing that these expenditures existed long before the institution’s inception.
This strategic initiative was primarily engineered to bolster national economic stability and accumulate critical foreign reserves rather than to generate commercial profits for the Bank of Ghana (BoG).
By prioritizing the mopping up of local gold to curb smuggling and diversify reserve buffers, the program inherently incurs operational costs that the central bank had been absorbing under previous administrative frameworks.
“The ASM G4R programme has never at any time generated profits for the Bank of Ghana. As has already been explained, the ASM G4R programme is a not-for-profit policy and has never made profits for the Central Bank.”
Sammy Gyamfi, Esq
Since its establishment in early 2025, GoldBod has worked to centralize and formalize the ASM sector, highlighting that the “losses” currently under public scrutiny are actually reduced trade costs compared to previous years.
Chief Executive Officer Sammy Gyamfi, Esq., noted that in 2024, the central bank recorded an audited loss of GHS4.84 billion while purchasing only 45.3 tonnes of gold when prices were significantly lower.
Under the current GoldBod-led arrangement, however, the volume of gold mopped into the national reserves has surged to 103 tonnes, more than double the previous year’s output despite global gold prices climbing above $4,400 per ounce.
This performance indicates a more efficient mobilization of resources, proving that the board’s regulatory oversight is successfully channeling higher volumes into official pathways.
Institutional Reform and Strategic Reserve Accumulation
The transition from the defunct Precious Minerals Marketing Company (PMMC) model to the GoldBod framework represents a fundamental shift toward a high-performance, centralized trade system.
Unlike its predecessor, which operated primarily as a profit-driven aggregator, GoldBod possesses exclusive regulatory and enforcement powers that have been instrumental in sanitizing the extractive value chain.
By implementing robust licensing reforms and deploying a standing task force to combat illicit trading, the board has successfully integrated thousands of artisanal miners into the formal economy.
This institutional authority has not only improved the traceability of Ghana’s gold but has also ensured that the state captures the true value of its mineral wealth, which was previously lost to systemic smuggling estimated at billions of dollars annually.
Macroeconomic Impacts and Currency Stability
Beyond the immediate mechanics of gold aggregation, the establishment of GoldBod has served as a critical anchor for Ghana’s broader macroeconomic recovery.
The board’s ability to supply the Bank of Ghana with significant volumes of gold has accelerated the achievement of international reserve targets, reaching the 2028 coverage goal three years ahead of schedule.
This surge in official gold reserves has provided the central bank with the necessary firepower to stabilize the Ghanaian cedi, reducing the historical reliance on expensive foreign exchange borrowing and Eurobond markets.
The resulting “Gold-for-Reserves” synergy has effectively cushioned the economy against external shocks, fostering a more resilient financial environment that benefits the entire country through lower inflationary pressures and improved investor confidence.
The Future of Sustainable Resource Management
As GoldBod prepares to assume full operational responsibility for ASM gold trading in 2026, the focus is shifting toward further cost-efficiency and environmental sustainability.
The board is currently developing a comprehensive policy blueprint in collaboration with the Ministry of Finance to streamline G4R operations and eliminate unnecessary fiscal frictions.
By engaging with small-scale mining associations to establish transparent pricing regulations and exploring partnerships for modern, mercury-free processing plants, GoldBod is positioning itself as a transformative force.
This forward-looking approach ensures that the ASM sector remains a sustainable pillar of national development, balancing the immediate need for foreign exchange with the long-term goal of responsible resource governance and environmental protection.
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