Ghana has more than tripled its gold reserves over a 22-month period, with holdings surging from 8.78 tonnes in May 2023 to 31.01 tonnes by March 2025, according to Bank of Ghana data.
This 253% increase forms part of a deliberate strategy to strengthen the nation’s economic buffers amid global uncertainties and local currency pressures.
The acceleration in gold accumulation follows the 2021 launch of the Domestic Gold Purchase Programme (DGPP), which requires large-scale miners to sell 20% of refined output to the central bank in cedis. The policy has not only boosted reserves but also helped formalize segments of Ghana’s artisanal mining sector, which accounts for about 30% of national production.
As Africa’s top gold producer, Ghana is leveraging its natural resources to shore up financial stability. The reserves provide a hedge against currency volatility, with the cedi having lost about 15% against the dollar this year despite recent modest gains. The timing appears strategic – global gold prices hit record highs above $3,500 per ounce earlier this year before settling around $3,300, enhancing the value of Ghana’s stockpile.
The government has further institutionalized its gold strategy through the newly established Ghana Gold Board (GoldBod), aimed at increasing transparency in the domestic gold market. The board’s mandate includes curbing illegal mining operations that have plagued the sector while ensuring more efficient reserve accumulation.
Economists note that while gold reserves provide important stability, their impact on the cedi’s performance remains limited without broader fiscal reforms. Ghana continues to grapple with high debt levels and inflation hovering around 23%, despite recent declines. The IMF has cautioned that commodity-backed buffers alone cannot substitute for structural economic adjustments.
The reserve buildup coincides with Ghana’s ongoing $3 billion IMF program, which emphasizes fiscal consolidation. Central bank officials maintain that the gold accumulation strategy complements rather than contradicts these reform efforts, providing an additional layer of protection against external shocks.
As global economic uncertainty persists, Ghana’s gold reserves may prove increasingly valuable. However, analysts stress that maximizing this advantage will require parallel progress in addressing macroeconomic imbalances and creating an environment conducive to sustainable growth. The coming months will test whether Ghana’s golden buffer can effectively cushion the economy while broader reforms take hold.
