The Bank of Ghana (BoG) has announced that the country’s gold reserves have surpassed $5 billion under the Government’s Domestic Gold Purchase Programme since its inception in 2021.
As of December 2023, the total gold reserve build-up was 65.4 tonnes.
The Central Bank further purchased an additional 23 tonnes of gold between January and June 2024, valued at $1.6 billion, bringing the total gold reserves to 73 tonnes.
Out of this figure, $1.6 billion worth of gold was used as equity in the Government’s ‘Gold for Oil’ initiative, a strategic move aimed at stabilizing the cedi and curbing the rising costs of foreign currencies.
Vice-President Commissions Royal Ghana Gold Refiner
The announcement was made during the official commissioning of the Royal Ghana Gold Refinery (RGGL) in Accra by Vice President Dr. Mahamudu Bawumia.
The RGGL, a joint venture between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, an Indian gold refinery firm, represents a significant investment in Ghana’s natural resource sector.
Speaking at the $450 million refinery’s unveiling, Dr. Bawumia praised the PMMC and RGGL for the successful construction of the facility.
He emphasized that the refinery would play a crucial role in adding value to Ghana’s gold, creating jobs, and driving sustainable economic growth.
The state-of-the-art refinery is equipped with cutting-edge technology that meets international standards, significantly enhancing the country’s capacity to process gold locally and increase value addition.
Strategic investment for economic transformation
Dr. Bawumia highlighted the importance of the refinery in the government’s broader strategy to make value addition a central component of Ghana’s export strategy.
“The establishment of this refinery is a strategic investment that contributes immensely to Government’s efforts in ensuring value addition to our mineral resources,” he stated.
Currently, Ghana exports its gold in dore form, leading to lost revenue and missed job creation opportunities.
The new refinery is expected to create between 80 to 120 direct jobs and an additional 500 indirect employment opportunities.
This will also boost domestic tax revenue through corporate taxes and enable the nation to refine gold to 24 carats, with a 99.99% purity, the same quality as a London Bullion Market Association (LBMA) good delivery bar.
A new era for Ghana’s gold industry
Vice President Bawumia pointed out that with the BoG’s Domestic Gold Purchase Programme (DGPP) and the new refinery, Ghana is positioning itself as the gold hub of Africa.
“This marks a new era for Ghana and ushers us into our vision of building a resilient economy anchored on our mineral resources in a golden age of natural resource governance,” he added.
The facility is expected to receive LBMA accreditation after three years of operation, which will allow Ghana to trade its refined gold on the international market.
However, before this accreditation can be issued, the refinery must ensure that all its gold dore is purchased from responsible sources.
This development represents a significant milestone in Ghana’s journey towards economic transformation and industrialization, with the refinery playing a central role in the country’s efforts to maximize the benefits of its natural resources.
