Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), proudly announced a significant increase in the country’s gold reserves this year. As of June 30, the BoG had successfully added over 7.70 tonnes of monetary gold to its reserves. Mining firms contributed around 80% of this increase, while the remaining 20% came from the Artisanal Small-scale Mining (ASM) sector through an approved aggregator.
This remarkable growth in gold reserves was made possible through the implementation of the Domestic Gold Purchase Programme, which was introduced in 2021. The program aimed to bolster the central bank’s gold reserves by purchasing domestically produced gold using the local currency.
Dr. Addison shared this exciting news during the fourth edition of the Ghana Gold Expo and Mining Week held in Takoradi. The event, themed “Sustainable Mineral Resources Development and Well-being of Mining Communities,” served as a platform for various stakeholders to discuss investment opportunities and challenges in the African gold sector, strategizing for accelerated growth in the mining industry.
Before the introduction of the Domestic Gold Purchase Programme, Ghana’s gold holdings had remained steady at 8.77 tonnes for several years. The program’s key objectives included raising cheaper sources of financing, increasing foreign exchange (FX) reserves, diversifying the FX reserves portfolio, and enhancing confidence in the economy to attract more foreign direct investment and spur economic growth.
Dr. Addison revealed that the bank’s ambitious goal of doubling its gold reserves from 8.77 tonnes to 17.4 tonnes within five years was already showing positive results. He expressed confidence that they were on track to exceed the target by the end of this year.
The increase in gold reserves not only strengthened the nation’s economic resilience against global economic shocks but also allowed for better management of macroeconomic imbalances. Dr. Addison emphasized the BoG’s commitment to expanding the involvement of the ASM sector under the Responsible Sourcing Framework. They would collaborate with the Precious Minerals Marketing Company to integrate Responsible Sourcing & Due Diligence Framework in operations to drive formalization in the industry.
Addressing the issue of unlicensed miners who violated sustainable mining practices, Dr. Addison assured that effective mechanisms were being implemented to curb their activities. As the tangible benefits of the Domestic Gold Purchase Programme become evident to all players in the value chain, he hoped that illegal mining activities would decrease, as operating outside the law would become prohibitively expensive.
