Govt admits gold dependence risk but prioritises gains while pursuing diversification agenda
The government has admitted that Ghana’s growing reliance on gold as the main source of export earnings presents a long-term economic risk but says the immediate focus is to maximise the benefits from the commodity while implementing a strategy to diversify the economy.
Latest data from the Bank of Ghana as of July 2026 shows that Ghana’s export earnings remain heavily concentrated in gold, which accounts for 68.3% of total exports. Cocoa contributes 12.5%, oil accounts for 9.4%, while non-traditional exports make up 9.8%.
The figures highlight Ghana’s vulnerability to changes in international gold prices, with foreign exchange inflows, government revenues and broader economic stability exposed to possible external shocks.
Speaking on the Citi Breakfast Show on Friday after presenting the 2026 Mid-Year Budget Review to Parliament, Finance Minister Dr Cassiel Ato Forson acknowledged the concentration risk but argued that the current situation reflects economic realities that require a gradual approach to address.
“This we are aware of. It is indeed a risk, but it’s also an advantage today. And we believe that it is not something that we can fix it, let’s say, in two months. It takes a lot more than two months to fix it. You need both planning, action, and resources to be able to fix it in the medium term. But we have a job to do. It takes a while to diversify,” he told host Bernard Avle.
Dr Forson explained that the establishment of the Gold Board (GoldBod) and its role in formalising artisanal and small-scale mining (ASM) gold purchases had helped Ghana retain a significant portion of its gold exports within the formal economy.
According to him, without the government’s intervention, a substantial amount of gold produced in the country could have been lost through smuggling.
“You need to take advantage of what you produce first and plan to diversify in the medium term. Today, this 68.3% you are mentioning, without intervention of Gold Board, half of it would have been lost. In the sense that it would have been smuggled out of the country,” he said.
The Finance Minister said government is developing a broader economic transformation programme aimed at reducing Ghana’s dependence on gold over the next three years.
The initiative, which will be introduced under a policy framework known as the “New Economy,” will focus on investing in sectors where Ghana has competitive advantages and expanding the country’s export base.
“Now, government has a strategic long-term plan to develop our commodities, for example. Beyond cocoa, we are working on palm. And we want to look at where we have strategic advantage and be able to take advantage, obviously, and then export to see how we can spend a little bit more, let’s say 1% of GDP, to diversify the economy and do more,” Dr Forson stated.
Ghana’s export performance in the first half of 2026 has been largely driven by gold, with total exports increasing from US$8.51 billion in March to US$18.29 billion by June.
Gold exports alone rose from US$5.26 billion to US$12.5 billion during the period, accounting for the largest share of the increase in foreign exchange earnings.
Cocoa exports recorded a moderate rise from US$1.65 billion to US$2.29 billion, while oil exports increased from US$753 million to US$1.71 billion.
The surge in export receipts helped expand Ghana’s trade surplus from US$4.53 billion to US$8.81 billion, reinforcing the importance of gold in supporting the country’s external sector performance and contributing to the stability of the cedi.
However, despite the strong export numbers, Ghana’s external buffers have continued to face pressure. Gross International Reserves fell by US$1.2 billion between March and June, declining from US$14.16 billion to US$12.94 billion, while import cover reduced from 5.7 months to five months.
During the same period, imports more than doubled to US$9.48 billion, driven largely by increased demand for oil, machinery, industrial inputs and consumer goods.