Ghana is seeking to expand its gold reserve programme by asking large-scale mining companies to sell 30% of their annual production to the central bank, up from the previous 20% target, as the country accelerates efforts to strengthen foreign reserves and support economic recovery.
The proposal marks a significant shift in the government’s reserve-building strategy and reflects the growing importance of gold as a financial safeguard for central banks worldwide.
However, despite the policy push, negotiations between the government and mining companies remain ongoing, with industry players raising concerns over pricing mechanisms, discounts and implementation timelines.
Ghana Expands Gold Reserve Ambitions
The move comes as global central banks increasingly turn to gold to diversify reserves amid economic uncertainty, inflation concerns and volatile financial markets.
For Ghana, Africa’s largest gold producer, the strategy is also part of a broader effort to rebuild external buffers after the country experienced its most severe economic crisis in decades.
The Bank of Ghana (BoG) launched its domestic gold purchase programme in 2022 to accumulate bullion reserves locally rather than relying solely on foreign exchange holdings.
Since then, the initiative has contributed to a steady rise in national gold reserves.
According to Bank of Ghana figures, reserves reached 19.2 metric tonnes in February, helping stabilize the Ghanaian cedi while improving the country’s financial resilience.
Officials believe expanding purchases from industrial miners will accelerate reserve growth and reduce vulnerability to external shocks.
New Target Aims for 157 Tonnes by 2028
The government revamped the reserve programme earlier this year with an ambitious long-term target.
Authorities now aim to accumulate up to 157 tonnes of gold by 2028, an amount equivalent to roughly 15 months of import cover.
Speaking on the revised strategy, officials involved in the programme indicated that negotiations are underway to increase industrial miners’ contribution from 20% to 30% of annual production.
Unlike earlier arrangements, authorities want the entire allocation delivered in dore form — partially refined gold bars produced at mines before final refining.
Officials argue the change would improve transparency and strengthen monitoring of production flows.
Under the revised framework, the government intends to track gold movement more closely while ensuring greater accountability in reserve accumulation.
Industrial Miners Fell Short of Previous Commitments
Government data suggests existing supply targets have not been fully achieved.
Officials estimate industrial mining firms delivered roughly 10 tonnes of gold last year, despite national industrial production approaching 100 tonnes.
That represented only about 10% of output, significantly below the earlier 20% commitment.
The gap has prompted authorities to rethink the system.
A key part of the revised strategy involves increasing oversight through GoldBod, the state-backed gold trading entity.
GoldBod is expected to play a central role as the official channel for exports and reserve allocation.
Authorities want all gold exports to pass through the agency to improve traceability and ensure reserve targets are met.
Where miners continue exporting directly, the central bank reportedly wants a portion of shipments retained in dore form to verify volumes and allocations.
Reserve Expansion Comes at a Cost
While the programme has strengthened reserves, it has also placed financial pressure on the central bank.
The Bank of Ghana recorded an operating loss of approximately GHS15.6 billion in 2025, according to its financial statements.
Officials attributed much of the loss to tighter monetary policy measures and the cost of expanding reserves, including expenses linked to domestic gold purchases.
Central bank officials argue such costs should be viewed as strategic investments rather than short-term losses.
Authorities say reserve accumulation inevitably involves expenses such as:
- Refining costs
- Transportation and freight charges
- Purity verification expenses
- Storage and logistics costs
Officials have defended proposals for small discounts on purchased gold, suggesting they reflect operational realities rather than penalties for miners.
Mining Companies Raise Concerns Over Commercial Terms
Despite government enthusiasm, mining companies say important issues remain unresolved.
Industry representatives insist no final agreement has been reached regarding the proposed increase.
Executives argue negotiations around pricing formulas and discount structures remain complex.
Mining firms reportedly oppose volume-based discount systems, warning they could reduce profitability and create additional financial burdens.
Another contentious issue involves treatment of by-products such as silver.
Industry sources say some proposals place little or no value on accompanying minerals extracted during production, a position miners strongly contest.
Executives also argue that moving immediately from 20% to 30% could disrupt existing production plans and commercial agreements.
Many companies structured operations around the earlier quota and believe a phased transition would be more practical.
Some industry representatives have proposed a gradual increase instead of immediate implementation.
Balancing National Interest and Investment Confidence
The debate highlights the challenge Ghana faces in balancing national economic priorities with maintaining a competitive mining environment.
Gold remains the backbone of Ghana’s export economy.
The sector generates billions in foreign exchange earnings annually and plays a major role in employment, government revenue and investment.
At the same time, policymakers increasingly view domestic gold reserves as essential to economic stability.
Global central banks purchased record volumes of gold in recent years as geopolitical tensions and currency volatility increased.
Ghana appears determined to follow that trend.
Analysts say the success of the revised programme may depend on whether authorities can reach commercially viable agreements with miners while preserving investor confidence.
Gold Strategy Reflects Broader Economic Recovery Efforts
Ghana’s expanded reserve drive forms part of broader efforts to stabilize the economy following debt restructuring challenges, currency depreciation and inflation pressures.
Strengthening reserves is seen as critical to supporting the cedi, improving import capacity and reducing dependence on external financing.
Officials believe larger bullion holdings could enhance long-term resilience.
However, with commercial terms still under discussion, the next phase of the programme may hinge on negotiations between government agencies, the central bank and mining companies.
For now, Ghana’s gold strategy represents one of the most ambitious reserve accumulation efforts on the continent—one that could reshape how resource-rich African nations manage mineral wealth in the years ahead.
