Why Mahama’s GANARP Is the Necessary Upgrade to Bawumia’s DGPP

The Reset Agenda, among others, is about Probity, Transparency and Accountability (which is the dogma of the 1992 Constitution), the Truth, as well as about Mind-Set Revolution of Thinking Positive and Thinking Big of One Ghana, under the leadership of the President of Ghana.

Introduction

In 2021, the financial system of Ghana suffered severe challenges due to among others, the following (a) severe US Dollar shortage, (b). Rapid currency depreciation through extreme demand for US Dollars, which caused a rapid devaluing of the local currency, the Cedis (c). Very High inflation rate of 54%.

This caused Dr Alhaji Muhammadu Bawumia, then as Vice President of Ghana to note that despite Ghana being a top producer of gold, unfortunately, Ghana’s gold reserve stood stagnant at 8.78 tonnes since 1958. So in June 2021, he sold the idea of the Domestic Gold Purchase Program (DGPP) to Bank of Ghana, to work on Gold for Reserve (GFR), by buying gold from Small Scale Miners at the global spot price to reduce smuggling.

Arrangement was reached with the Ghana Chamber of Mines for the Members as Large Scale Mining Companies to give 20 % of their of gold production to the Government through Precious Minerals Company/BOG at 0.6% discount of the global spot price.

So, the Bank of Ghana started the Domestic Gold Purchase Programme on 17 June 2021 and this made it possible to increase the Gold reserve from the 8.78 tonnes between the Independence era in 1957 and 17 June 2021, gradually through a Gold for Reserve (GFR) until a peak of 30.5 tonnes by 31 December 2024, under the Regime of President Nana Addo.

Government is a continuous process, so His Excellency JD Mahama, when he took over as President of Ghana, he caused his regime to continue with the GFR under the DGPP, as a very good macroeconomic stability effort.

So, he established the GoldBod in early 2025 to take over from the Precious Minerals Marketing (PMMC) in the business of gold buying from Small Scale Miners and the receipt of 20% gold from the large Scale Mining Companies and the exporting of same through the vault of BOG, but with some differences. Especially payment of a premium price as a way to further reduce smuggling of gold by Small Scale Miners and scaling up of the programme, for rapid increase in the International Reserve.

Based on the good work of GoldBod under the able leadership of Lawyer Sammy Gyamfi Esq, the Dr Bawumia’s Domestic Gold Purchase Programme for GFR through the BOG, made very great impact to the economy. This motivated Lawyer Sammy Gyamfi Esq to openly give credit to Dr Bawumia. Google for ‘Lawyer Sammy Gyamfi Esq, gives Credit to Dr Bawumia for the Domestic Gold Purchase Programme’.

Hence, the great achievements made by the GoldBod with the DGPP by the end of 2025, which should be shared by the current and previous administrations for the unprecedented economic benefits, rather triggered intense financial and political debates.

Gains of the DGPP

The gains under the DGPP, through the very good works of the GoldBod, under the very able leadership of Lawyer Sammy Gyamfi Esq, include massive foreign exchange reserve growth, by successfully transforming Ghana’s external buffers by mopping up domestic gold which led to the rapid growth of the international reserves by scaling it up from 8.9 Billion US Dollars in 2024 to 13 Billion US Dollars in 2025.

It brought about the stabilization of the Cedis by easing open market demand for US Dollars thus curbing extreme volatility of the Cedis and reduction of smuggling or illicit trading of gold. Helped BOG to reduce inflation, reduced the National Debt in Cedis terms or value. Reduced the price of imported good goods.

Of course, the rapid appreciation of the Cedis, was/is a harm to the economy especially local producers like rice farmers, eggs producers in the Agric Sector and exporters would prefer a devaluation of the Cedis to say at GHC12 to a dollar as against GH10.00 to reduce import and encourage production to improve the macroeconomic dynamics, otherwise import substitution measures through taxes on imports or ban on the importation of goods that can be produced massively to meet national demand.

Intense financial and political debates

The recent IMF Review of the Economy, revealed that the Scaling up of the DGPP, through the good work of the GoldBod for public good, generated 1.7 Billion US Dollars (22 Billion Ghana Cedis) in accounting/quasi-fiscal losses, which was 1.5% of GDP. That this equal to 17% of the value of gold exported, as a result the Bank of Ghana ended with a negative equity up to 93.8 Billion Ghana Cedis. Which stemmed from the policy choice of buying gold from Small Scale miners at the spot price and at the high Forex Bureau rates as against Bank of Ghana Reference Rate as measure to curb or reduce smuggling or illicit trading of gold in the Small Scale Mining Sector.

The IMF indicated that the contributing factors include the service fees of 0.5%, assay fees of 0.25% (Parliament approved about same) to which Bank of Ghana paid to her Gold buying Agent or Aggregator as the GoldBod, then issues of discount fees of international off-takers, and a problem of the exchange rate which was spread between spot price the gold was bought from the Small Scale miners and the Forex Bureau rate and the rate used by Bank of Ghana for accounting. Stakeholders in the debate, the IMF (whose report gave birth to the debate) Parliament especially the Minority Group, some members of the Intelligentsia Community especially Dr Banor, Professor Bopkin, the Media CSOs and the defenders include BOG, GoldBod, Some Government Officials etc.

The way forward
The matter should be about accountability, transparency and sustainability and not the confrontational stance of the usual political exchange or the fire for fire fight debate (populism tendencies to win or motivate public emotions) in the nation’s body politics so a search for the way forward. Especially when the DGPP is the idea of Dr Bawumia, the Flagbearer of the NPP, and was duly credited for this macroeconomic stabilization programme by Lawyer Sammy Gyamfi Esq, about two weeks.

Hence, this should have united the nation for her ability of a found solution for the challenges of the economy and cooperate to see how to sustain it through Ghana Accelerated National Reserve Accumulation Program (GANARP) by stopping the BOG from funding the DGPP and thus making the GoldBod under the Ministry of Finance to be totally responsible for the associated risks, and the Government to put in a budget line or cost line to absorb the losses as at date and see to the recapitalization of Bank of Ghana.

The purchase of gold at the global spot price with different or parallel high exchange rate of Forex Bureau from the Bank of Ghana’s Reference Rate will surely create heavy losses. So the government policy shift to stop Bank of Ghana from funding it and GoldBod required to reduce operational cost, work on traceability of the gold.

GoldBod, is also to see to value addition, work with a financial framework to include the Ministry of Finance, through the Ghana Accelerated National Reserve Accumulation Program, effective March 2026, so that the GoldBod is responsible for everything with the DGPP under the GANARP.

The IMF has recommended that the operational cost to be reduced from the 14-15% in 2025 to 5%, instead of the 11-12 % planned in 2026, also need for an increase in transparency and the strengthening of safeguards around the programme.

National Security Systems (Operations) or Ghana is required to see to the effective curbing or checks of smuggling of gold by, so as to help reduce the payment of high premium to Small Scale Miners by GoldBod as measure to reduce smuggling.

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