Gold-Traded Investments in Ghana: Lessons and Path Forward
Gold has historically served as a globally recognized store of value and a hedge against economic uncertainty, inflation, and currency volatility. In recent decades, the rise of sophisticated financial markets and technology-driven trading platforms has transformed gold from a simple physical commodity into a diverse suite of investable assets.
These include physical bullion, gold-backed securities such as ETFs, digital gold, mining equities, mutual funds, and complex financing instruments like royalty and streaming agreements.
Ghana, Africa’s second-largest gold producer after South Africa, is uniquely positioned to leverage its vast gold resources beyond mere export revenues. By formalizing and regulating its gold sector, Ghana can enhance foreign exchange reserves, stabilize its currency, create wealth opportunities for citizens, and deepen its financial markets.
The recent establishment of the Ghana Gold Board (GoldBod) under the Gold Board Act (Act 1140, 2025) marks a pivotal institutional reform aimed at centralizing gold trade oversight, especially in the artisanal and small-scale mining (ASM) sector, which accounts for a significant portion of Ghana’s gold output.
In a historic move, GoldBod has signed purchase agreements with nine large-scale mining companies to buy 20% of their output. This not only secures steady gold reserves for the state but also helps regulate supply, promote value addition, and support macroeconomic stability. Ghana’s gold exports reached an unprecedented nearly $900 million in April 2025, reflecting the success of these reforms. Further, the Bank of Ghana’s Domestic Gold Purchase Program has amassed over $5 billion in reserves, underpinning the country’s efforts to diversify its reserves beyond traditional foreign currencies.
The commissioning of the Royal Gold Ghana Limited refinery, a joint venture between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, signifies Ghana’s push towards refining and value addition locally. This approach is crucial for retaining more economic benefits within the country and creating skilled jobs, in contrast to exporting raw gold.
In response to the growing demand for more liquid and modern instruments, gold-backed securities have become prominent. Among them, Exchange-Traded Funds (ETFs) which offers exposure to gold prices without the need to handle the metal physically. Ghana’s proposed gold-backed ETF will supported by the Minerals Income Investment Fund (MIIF) which will be designed to emulate South Africa’s successful NewGold ETF, already trading on the Ghana Stock Exchange. This initiative could significantly enhance access to gold investments for local investors and institutions.
Another innovative product gaining traction is digital gold, which allows electronic ownership of gold stored securely in vaults. This model has seen success in markets like India, where platforms such as SafeGold and MMTC-PAMP have made gold investments accessible to retail investors through mobile applications and small denomination purchases.
Ghana can adapt this model to promote financial inclusion and bring more retail investors into the formal gold investment space. For investors seeking exposure to the performance of the gold sector rather than the metal itself, gold mining stocks provide an indirect but dynamic investment channel. Shares in companies such as Newmont and AngloGold Ashanti offer opportunities for dividend income and capital gains, although they carry higher risks linked to operational efficiency, market volatility, and commodity prices.
In addition, mutual funds and unit trusts tailored to gold investments have become attractive to investors looking for professionally managed, diversified exposure. For example, the Ghana Gold Money Market Fund (GMMF) pools investor capital into a mix of gold-related assets, offering risk-adjusted returns. These funds provide an accessible entry point for both novice and experienced investors. Globally, similar structures like the VanEck Gold Miners ETF offer comparable benefits. A more specialized category includes gold royalties and streaming agreements.
Popularized in Canada, these financial instruments grant investors rights to a portion of future production or revenue from mining operations in exchange for upfront capital. This model minimizes operational risks for investors while securing long-term income streams. Although relatively new in Ghana, the introduction of such instruments could attract sophisticated institutional investors and enhance funding options for mining projects.
Consequently, I am of the believe that, Ghana’s gold investment market presents a robust and increasingly sophisticated array of products that cater to both traditional and modern investors. By integrating physical assets with financial innovation, ranging from ETFs to digital platforms and structured royalty agreements, Ghana is positioning itself as a leader in Africa’s gold investment landscape. These developments not only empower investors but also contribute to national economic stability and the deepening of domestic financial markets.
Dr. Bernard Tetteh-Dumanya is a distinguished Ghanaian financial economist and consultant with nearly three decades of experience spanning academia, corporate finance, and agribusiness. He has held pivotal roles at institutions such as UBA Ghana, SIC Financial Services, Empretec Ghana, and the Swiss International Finance Group, reflecting his profound understanding of global finance. Renowned for pioneering efforts in risk management, compliance, and corporate strategy, Dr. Tetteh-Dumanya has significantly contributed to Ghana’s financial landscape. His expertise encompasses venture capital, business and financial reengineering, and fundraising, playing a crucial role in the growth and development of numerous entities.
Driven by a commitment to capacity development, he has provided consultancy services to a diverse array of local and multinational organizations, including GIZ, AGRA, SNV, DANIDA, and USAID. As the CEO of SGL Royal Kapita, he has introduced innovative investment services targeting Ghana’s agriculture sector, aiming to support farmers and agribusinesses in achieving financial stability and growth. Beyond his professional endeavors, Dr. Tetteh-Dumanya is an influential columnist, offering incisive analyses on Ghana’s economic policies and advocating for strategic financial mechanisms to enhance the nation’s economic sovereignty.
For inquiries, Dr. Tetteh-Dumanya can be reached at: mafioba@yahoo.com
