Ghana Gold Board Mandates Local Refining as Bank of Ghana Navigates GH¢22 Billion Program Adjustments

The Ghana Gold Board (GoldBod) has issued a landmark directive requiring all gold doré purchased by Self-Financing Aggregators (SFAs) to be refined locally before export, effective September 1, 2026. This move, sanctioned under the Ghana Gold Board Act of 2025 (Act 1140), represents a significant shift toward domestic value addition in Africa's leading gold-producing nation. SFAs have until August 31, 2026, to amend existing commercial agreements with approved offtakers to include local refining provisions. Non-compliance faces severe regulatory sanctions, including the potential suspension of export approvals and the revocation of operating licenses, as the government seeks to formalize the sector and curb the rampant smuggling that saw an estimated $11.4 billion worth of gold leave the country illicitly between 2021 and 2023.

This regulatory tightening comes amidst intense scrutiny of the Bank of Ghana’s (BoG) financial health following its involvement in the Domestic Gold Purchase Programme (DGPP). In 2025, the BoG recorded a gross accounting loss of GH¢21.89 billion (approximately $1.7 billion) linked to the program. Financial analysts and BoG sources clarified that 87% of this figure represents an accounting adjustment rather than a cash expense, triggered by a significant disparity between market acquisition rates and official recording rates during a period when the cedi appreciated by 40.7%. Despite these paper losses, the DGPP successfully generated $13.8 billion in foreign exchange reserves, providing a critical buffer for the national economy and reducing reliance on external borrowing.

However, the International Monetary Fund (IMF) and local experts have expressed concerns regarding the governance and transparency of these gold-backed interventions. IMF Resident Representative Dr. Adrian Alter warned that the DGPP and related debt exchange programs have strained the BoG’s balance sheet, leaving its equity at approximately 7% by the end of 2025. The IMF has urged for greater transparency and recommended that the BoG maintain its independence by avoiding quasi-fiscal activities. Supporting this view, Professor Godfred Bokpin of the University of Ghana Business School welcomed the government's decision to migrate gold-purchasing costs away from the central bank’s books to GoldBod, emphasizing that the true costs of the program—including environmental damage from mining—must be accurately accounted for to ensure long-term macroeconomic stability.

On the ground, the transition to the GoldBod-led regulatory framework has faced operational hurdles. Reports indicate that several licensed gold buyers recently faced funding delays of up to three weeks from GoldBod, forcing some to suspend purchases or seek expensive private loans to remain operational. These delays highlight the logistical challenges of centralizing gold trade oversight in a sector previously plagued by a $4 billion discrepancy in reported export and import figures. As the September 1 deadline for local refining approaches, the government and GoldBod must balance the aggressive push for value addition with the need for reliable liquidity to ensure the formal gold market remains competitive against illicit smuggling routes.