Bank of Ghana Amasses Over $5 Billion in Gold Reserves Under Domestic Purchase Programme
The Bank of Ghana (BoG) has accumulated over $5 billion in gold reserves since the inception of its Domestic Gold Purchase Programme (DGPP) in 2021, marking a strategic move to bolster the country’s financial resilience.
As of December 2023, Ghana’s gold reserves stood at 65.4 tonnes. In the first half of 2024, the Central Bank added an additional 23 tonnes, valued at approximately $1.6 billion, bringing total reserves to 73 tonnes.
This build-up has been instrumental in the government’s broader economic strategy, with $1.6 billion of the gold reserves allocated to its “Gold for Oil” initiative. This program is designed to stabilize the Ghanaian Cedi and mitigate the pressures from volatile foreign exchange markets.
The milestone was celebrated during the commissioning of the Royal Gold Ghana Limited (RGGL), a $450 million gold refinery in Accra. RGGL is a joint venture between Ghana’s Precious Minerals Marketing Company (PMMC) and India’s Rosy Royal Limited.
The refinery represents a significant step in Ghana’s ambition to move up the value chain in its gold industry, transitioning from a century-long history of exporting raw gold to refining it domestically.
Speaking at the ceremony, Vice President Dr. Mahamudu Bawumia highlighted the importance of the refinery in Ghana’s industrialization agenda, noting that the facility is equipped with cutting-edge technology that meets international standards.
The refinery is expected to achieve London Bullion Market Association (LBMA) accreditation within three years, provided it sources its gold from responsible suppliers.
The establishment of the RGGL is expected to generate between 80 and 120 direct jobs, with an additional 500 indirect positions, thereby contributing to the country’s tax revenues through corporate taxes and enhancing its ability to refine gold to 24-carat, 99.99% purity—the standard for good delivery bars in international markets.
Dr. Bawumia asserted that the ability to locally refine gold would enable Ghana to capture more of the economic value of its mineral resources, reducing the reliance on exporting raw materials and reinforcing the nation’s economic independence.
The move aligns with the government’s vision of positioning Ghana as the gold hub of Africa, a strategy that is set to redefine the country’s role in the global precious metals market.
