Gold for Oil policy boosts Ghana’s reserves to 14 tonnes
Ghana’s gold reserves have surged to 14 tonnes following the implementation of the gold for oil policy, a development which could significantly improve the West African country’s balance of payments position and help to reduce the persistent depreciation of its cedi. President Akufo-Addo announced the increase at the official opening of the Graphic Natural Resources Stakeholders Dialogue, an event which brought together industry experts and stakeholders to discuss the responsible management of Ghana’s natural resources.
Addressing the gathering in Accra on Thursday, President Akufo-Addo said that the gold for oil policy is strategic and had helped to increase the country’s gold reserves from eight to 14 tonnes within just 18 months of its implementation. “For well over the century that we have been mining gold, our gold reserves between the 1980s and June 2021 were just eight tonnes”, he said.
The two-day forum was organised by the Graphic Communication Group Ltd in collaboration with the Ministry of Lands and Natural Resources and was held under the theme “Harnessing Our Natural Resources Responsibly for our Sustainable Collective Good”. During the event, participants discussed the importance of adopting sustainable practices in the use and management of natural resources to ensure that the current demands do not jeopardise the interests and wellness of future generations.
Ato Afful, the managing director of the Graphic Communication Group Ltd, stressed the need for a collaborative effort in protecting the environment. He emphasised that by committing to taking action, learning from what has been done over time, and working together, Ghanaians can create a sustainable future for all. “Sustainability is the key to effective use of our natural resources. By caring and working together, we can create a sustainable future for all Ghanaians; living and unborn,” he said.
Ghana’s economy is heavily reliant on its natural resources, particularly gold, which is its biggest foreign exchange earner. The gold for oil policy seeks to address this by using some of the country’s gold reserves to pay for oil imports, which would help to ease the pressure on its foreign exchange reserves. The policy was first announced in 2020 by President Akufo-Addo, who said that it would help to create a “new paradigm” for the country’s economy. The surge in Ghana’s gold reserves is an indication that the policy is starting to yield positive results.
