The Governor of the Bank of Ghana, Dr Ernest Addison, announced that the central bank's gold reserves have increased this year. This was achieved through the Domestic Gold Purchase Programme, which allowed the bank to purchase domestically produced gold using the local currency. As of June 30, the bank added over 7.70 tonnes of monetary gold to its reserves, with approximately 80% coming from mining firms and the remaining 20% from the Artisanal Small-scale Mining (ASM) sector through an approved aggregator.
Dr Addison announced this at the fourth edition of the Ghana Gold Expo and Mining Week in Takoradi, held on the theme of "Sustainable Mineral Resources Development and Well-being of Mining Communities." The expo provided a platform for stakeholders to discuss investment opportunities and challenges in the African gold sector to help implement strategies for growth.
Before the programme's introduction in June 2021, Ghana's gold holdings had remained at 8.77 tonnes for years. The programme aims to increase the bank's gold holdings, raise cheaper sources of financing, increase foreign exchange reserves, diversify the portfolio, and foster confidence in the economy. The bank aims to double its gold reserves from 8.77 tonnes to 17.4 tonnes in five years through the DGPP.
The increase in the bank's gold reserves provides an additional buffer to help the economy withstand global economic shocks and better manage macroeconomic imbalances' impact. The bank plans to expand the suppliers in the ASM sector under the Responsible Sourcing Framework, adopt and integrate the Responsible Sourcing & Due Diligence Framework in the operations of the Precious Minerals Marketing Company, and work with key stakeholders and mining regulators to improve standards for community mines as an essential gold supplier.
Effective mechanisms are being implemented to address the menace of unlicensed miners who violate sustainable mining practices. As the benefits of the DGP programme become tangible to all players in the value chain, activities of illegal operators will either be reduced or made to align with responsible mining practices.