Civil society activist Dr. Steve Manteaw has challenged the narrative surrounding reported 214 million dollar losses in the Bank of Ghana’s (BoG) domestic gold purchase programme, arguing that focusing solely on operational costs while ignoring macroeconomic benefits distorts the programme’s actual impact. The natural resource governance expert maintains that critics and some analysts are fixating on one side of the ledger without acknowledging substantial gains the programme delivered.
The International Monetary Fund (IMF) disclosed the losses in its fifth review report of Ghana’s Extended Credit Facility (ECF) programme released December 17, 2025. According to the fund, operational costs from Ghana Gold Board (GoldBod) alongside trading shortfalls drove losses under the Gold for Reserves programme to 214 million dollars within the first nine months of 2025. The IMF attributed most losses to trading shortfalls in the artisanal and small scale mining doré gold transactions component, plus GoldBod off takers’ fees.
Dr. Manteaw, former chair of the Public Interest and Accountability Committee (PIAC), said the reported losses should not surprise anyone familiar with how the programme was structured. He explained that from its inception, the design made operational losses almost inevitable because GoldBod purchased gold at zero percent discount, meaning it bought at full market price and sold at the same price. Any additional costs including transport, salaries, utilities and logistics automatically became losses.
Using a retail analogy, Dr. Manteaw illustrated the situation as similar to a shopkeeper buying goods at ten Ghana cedis and retailing them at ten Ghana cedis. The difference between purchase and sale price covers no costs, meaning transport expenses, employee wages, utility bills and operational overheads all register as losses. This zero margin approach was built into the programme architecture, making some level of operational deficit predictable rather than evidence of mismanagement.
However, Dr. Manteaw urged Ghanaians to examine net benefits rather than fixating on the 214 million dollar figure in isolation. Since the programme’s start, Ghana has earned over 10 billion dollars from gold exports facilitated through the domestic purchase system. That foreign exchange inflow played a critical role stabilizing the cedi during extreme economic pressure, with impacts extending beyond the central bank throughout the entire economy.
The net effect of the programme, despite the 214 million dollar operational cost, includes forex stability that helped slow inflation, ease interest rates and reduce fuel prices. Dr. Manteaw emphasized that the reported loss represents less than three percent of foreign exchange income generated by gold exports. This calculation suggests the programme delivered substantial positive returns when viewed comprehensively rather than through the narrow lens of operational expenses.
The programme helped the Bank of Ghana build unprecedented volumes of gold reserves, with export proceeds used to shore up the local currency. Provisional central bank data suggest reserves could exceed 13 billion dollars by end 2025, bolstering confidence in the economy. Gold reserves specifically surged nearly 39 percent over the past year, climbing from 25.97 tonnes in August 2024 to 36.02 tonnes by August 2025, valued at 3.17 billion dollars.
Dr. Manteaw characterized the Domestic Gold Purchase Programme (DGPP) as a strategic investment rather than a failed initiative. He acknowledged the costs were real but argued the benefits seen in higher gold reserves, stronger export earnings and improved currency stability were equally real. Focusing narrowly on the 214 million dollar loss without acknowledging broader gains risks turning what he considers a national success story into a headline scandal.
His intervention comes amid heated public debate and expressions of concern from analysts and ordinary Ghanaians worried about the potential impact of such losses. The Bank of Ghana has dismissed loss claims as speculative and premature, noting that audited financial statements including all relevant disclosures will be published next year in line with statutory requirements. The central bank cautioned the public against relying on unverified figures currently in circulation.
GoldBod Chief Executive Officer Sammy Gyamfi has rejected claims of 214 million dollar losses, describing the reports as false and misleading. He said GoldBod has not made losses since establishment and instead recorded profits in 2025. Based on unaudited financial statements, Gyamfi disclosed GoldBod expects to declare an income surplus of not less than 600 million cedis for 2025.
Gyamfi explained that GoldBod’s role in 2025 was limited to buying gold locally, testing its quality and exporting it for the Bank of Ghana. The sale and trading of gold remains the Bank of Ghana’s sole responsibility. The only fees GoldBod receives are a 0.25 percent assay fee and 0.5 percent service charge inherited from a 2023 agreement between the Bank of Ghana and the former Precious Minerals Marketing Company. These fees were not increased in 2025.
Bank of Ghana Governor Dr. Johnson Asiama has defended GoldBod’s performance, stating in an IMF interview published earlier in December that the initiative generated about eight billion dollars since its March 2025 launch. He explained that GoldBod addresses leakages where foreign exchange from gold sales wasn’t returning to Ghana through a revolving system whereby exports bring foreign exchange to the central bank, which provides cedi equivalents for further purchases.
GoldBod announced it exceeded its 2025 small scale gold export target of 100 tonnes, generating over 10 billion dollars in foreign exchange. The apparent contradiction between GoldBod’s claimed success in generating foreign exchange and the IMF’s disclosure of substantial losses highlights questions about how different stakeholders are measuring the programme’s net financial impact.
The IMF, while flagging financial risks associated with the programme, acknowledged its broader contribution to macroeconomic stability. The fund noted the programme strengthened international reserves, supported currency stability and enabled access to foreign exchange without increasing public debt. The operational role of GoldBod acting as an aggregator was highlighted as critical in channelling gold inflows from the small scale mining sector into the formal market.
To address fiscal and operational concerns, the Bank of Ghana’s Board approved reforms to improve pricing and operational efficiency in the downstream segment of the programme. These reforms take effect January 2026, supported by allocations in the 2026 national budget to fully resource GoldBod. The Finance Minister advanced 4.4 billion Ghana cedis to GoldBod in the 2025 budget, a move expected to result in GoldBod completely taking over operations with the Bank of Ghana no longer incurring costs starting January 1, 2026.
Sources at the Bank of Ghana told local media that Governor Asiama submitted a proposal in November 2025 to exit the gold trading business, which the board approved. The decision aims to help the central bank concentrate again on its core mandate of inflation targeting and price stability. Officials insisted this decision had nothing to do with the IMF publication and was taken before the fifth review report was released.
Under the new arrangement, GoldBod will control the entire gold supply chain and sell gold proceeds in US dollars to the Bank of Ghana in exchange for cedis for subsequent gold purchases. This structural shift addresses concerns about the central bank’s direct involvement in commodity trading, which some analysts argued diverted attention from monetary policy responsibilities.
The losses follow similar significant setbacks recorded under the previous government’s Gold for Oil programme, which the Bank of Ghana acknowledged resulted in losses of 2.137 billion Ghana cedis over two years. The central bank reported losses of 317 million cedis in 2023 and 1.82 billion cedis in 2024 before officially ending the initiative March 13, 2025. The Bank of Ghana attributed most Gold for Oil losses to foreign exchange fluctuations, though key details about volumes acquired, commissions paid and intermediaries involved remained undisclosed.
The Gold for Oil programme was introduced December 2022 as an alternative strategy to purchasing petroleum products with dollars amid sharp cedi depreciation and depleted foreign reserves. Critics including Dr. Manteaw and policy think tank Imani Ghana voiced concerns about the programme’s lack of transparency and perceived government interference in a deregulated market. Deals made under Gold for Oil were shrouded in secrecy, raising potential worries about corrupt practices and the role of middlemen in transactions.
Dr. Manteaw’s current defense of the domestic gold purchase programme marks a shift from his earlier skepticism about gold backed commodity programmes. His support appears rooted in the programme’s more transparent structure under GoldBod and its demonstrable impact on reserve accumulation and currency stability. The distinction between the secretive Gold for Oil arrangement and the more structured domestic gold purchase system explains his different assessments.
The cedi’s appreciation of more than 50 percent against major trading currencies since January 2025, trading at 11.85 to the US dollar by May, reflects both the programme’s impact and broader macroeconomic improvements. Real gross domestic product (GDP) growth exceeded expectations, inflation declined faster than projected into the Bank of Ghana’s target range, and international reserves expanded steadily throughout 2025.
However, questions remain about long term sustainability. The IMF cautioned that the rapidly expanding scale of the programme, particularly since GoldBod’s creation, could expose Ghana to heightened risks. The fund noted that the large and increasing scale of the Gold for Reserves programme represents a source of significant downside risks. As the programme scales up, it becomes more exposed to losses arising from pricing gaps, execution challenges, service charges and off taker discounts.
Dr. Manteaw’s intervention essentially reframes the debate from whether losses occurred to whether the country gained more than it lost. His argument rests on demonstrable macroeconomic outcomes including reserve growth, currency stability and reduced inflation that he attributes substantially to the gold programme. The 214 million dollar operational cost, in his calculation, represents a reasonable price for delivering these broader stabilization benefits.
The debate highlights competing ways of evaluating public programmes. Auditors and fiscal conservatives naturally focus on direct costs and operational efficiency, measuring success through profit and loss statements. Development economists and policymakers often employ broader cost benefit analyses that include indirect effects and strategic objectives. The domestic gold purchase programme sits at this intersection, where operational losses coexist with macroeconomic gains.
Whether Dr. Manteaw’s perspective prevails depends partly on how the Bank of Ghana’s audited financial statements present the programme when published next year. If audited figures confirm the 214 million dollar loss while also documenting the programme’s contribution to 13 billion dollars in reserves and substantial cedi appreciation, his argument about net benefits gains credibility. If losses exceed current estimates or benefits prove less attributable to the gold programme than claimed, criticism will intensify.
For now, the civil society leader has staked out a position defending the programme as strategically sound despite operational costs. His willingness to publicly support a government initiative, particularly one involving the central bank’s controversial commodity trading activities, carries weight given his history of holding state institutions accountable. Whether this defense influences public opinion or policy decisions remains to be seen as more complete financial data becomes available.
