Refining Ghana’s Gold Strategy: A Policy Workshop to Anchor the DGPP in Global Best Practice

As Ghana’s economic recovery enters a new phase, the Bank of Ghana (BoG), in collaboration with the Ghana Gold Board (GoldBod) and the Ministry of Finance, is convening a high-level policy workshop to review the Domestic Gold Purchase Programme (DGPP). This initiative, launched during a period of acute macroeconomic vulnerability, was instrumental in stabilising the cedi and rebuilding foreign exchange reserves. But as BoG Governor Dr. Ernest Addison candidly noted, “this stability came at a cost.”

The upcoming workshop is not merely a technical review—it is a strategic inflection point. It offers Ghana the opportunity to transform the DGPP from a crisis-response mechanism into a long-term pillar of economic resilience, industrial transformation, and national pride.

Why the DGPP Matters
Since its inception, the DGPP has helped Ghana accumulate over 20 tonnes of gold reserves, reduced pressure on the cedi, and created a domestic market for small-scale gold producers. Yet, the programme faces critical challenges: fiscal strain on the central bank, limited transparency in procurement, and weak integration with the broader gold value chain.

To ensure the DGPP’s sustainability and alignment with global standards, the policy workshop must go beyond diagnostics. It must chart a bold, forward-looking roadmap.

Strategic Recommendations for the Workshop

1. Institutionalise Governance and Oversight

To ensure credibility and continuity, the DGPP requires a robust governance structure that transcends political cycles.

• Establish a multi-stakeholder DGPP Oversight Board, including representatives from BoG, GoldBod, the Ministry of Finance, civil society, and artisanal mining groups.
• Mandate annual independent audits and performance reviews, with findings presented to Parliament and the public.

International parallel: India’s Gold Monetisation Scheme is governed by a multi-agency task force that ensures transparency and accountability through regular reporting.

2. Enhance Transparency and Market Confidence

Public trust and investor confidence hinge on open access to data and clear procurement rules.

• Publish quarterly DGPP performance reports detailing gold volumes, pricing benchmarks (e.g., LBMA spot prices), and reserve contributions.
• Disclose procurement mechanisms, supplier eligibility, and pricing formulas to prevent market distortions.

International parallel: The People’s Bank of China publishes monthly gold reserve updates, reinforcing its credibility in global markets.

3. Transition to a Multi-Institutional Gold Reserve Fund

To reduce the fiscal burden on the BoG, Ghana should diversify funding sources for gold accumulation.

• Establish a Gold Reserve Fund co-financed by BoG, the Ghana Stabilisation Fund, and private institutional investors.
• Introduce gold-backed bonds to mobilise domestic and diaspora capital into the reserve strategy.

International parallel: Turkey’s Central Bank uses gold deposit accounts and gold-backed bonds to integrate private gold holdings into national reserves.

4. Deepen Local Value Addition and Refining Capacity

The DGPP should catalyse industrial transformation by anchoring local beneficiation and refining.

• Provide tax incentives and guaranteed offtake agreements to support domestic refineries.
• -Accelerate LBMA certification for Ghanaian refineries to meet global standards and unlock international markets.

International parallel: South Africa’s Rand Refinery, an LBMA-certified facility, plays a central role in the country’s gold reserve and export strategy.

5. Integrate Artisanal and Small-Scale Miners (ASM)

ASM contributes over 30% of Ghana’s gold output but remains largely informal and excluded from the DGPP.

• Formalise ASM cooperatives and provide technical support to meet traceability and environmental standards.
• Introduce a “Green Gold” certification scheme to reward responsible mining and ensure ethical sourcing.

International parallel: The Swiss Better Gold Initiative integrates ASM into global supply chains through traceability systems and premium pricing.

Learning from Global Best Practices
Ghana can draw inspiration from countries that have successfully leveraged domestic gold strategies:

• Russia centralises gold procurement through state refineries and maintains monthly reserve disclosures.
• China combines strategic gold accumulation with industrial policy to dominate refining and jewellery markets.
• Turkey mobilises private gold holdings through innovative financial instruments and public trust.

These examples underscore the importance of transparency, institutional coordination, and industrial integration—principles Ghana must now embed in the DGPP.

The Road Ahead
The DGPP has served Ghana well in turbulent times. But to become a cornerstone of economic sovereignty and industrial transformation, it must now evolve. The upcoming workshop is a chance to:

• Codify the DGPP into law to ensure continuity and investor confidence.
• Align with ESG standards to position Ghana as a responsible gold hub.
• Empower youth and local communities through training in refining, certification, and reserve logistics.

With bold reforms and global benchmarking, Ghana can transform its gold reserves from a short-term buffer into a long-term asset for national development.

Retired Senior Citizen
Teshie-Nungua
akpaluck@gmail.com

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