"S&P Warns Ghana\u2019s Gold Purchase Initiative Threatens Cocoa Sector Stability"

" S&P Warns Ghana\u2019s Gold Purchase Initiative Threatens Cocoa Sector Stability \r\n Global ratings agency S&P has cautioned that Ghana\u2019s gold purchasing initiative, aimed at formalising the artisanal mining sector and enhancing export earnings, could undermine the country\u2019s agricultural sector\u2014particularly cocoa farming. \r\n The warning comes in the wake of the government's intensified efforts to regulate the artisanal mining space through the Ghana Gold Board (GoldBod), which has been granted exclusive rights to buy, sell, assay, value, and export gold and other precious minerals. \r\n According to S&P, while the initiative has led to a marked improvement in gold exports amid strong global prices, it may have unintended consequences for agriculture. \r\n \u201cThe government\u2019s initiative to purchase gold from artisanal miners is formalizing the trade and significantly boosting exports, particularly in the context of high gold prices. However, this has negative implications for the agricultural sector, especially cocoa farming,\u201d S&P stated in a report assessing Ghana\u2019s recent economic performance. \r\n The concern stems from the increasing shift of labour and land resources from cocoa farming to artisanal mining, a trend which could depress cocoa production, a key foreign exchange earner and source of livelihood for millions of Ghanaians. \r\n On the fiscal front, the agency highlighted that Ghana's fiscal performance showed signs of improvement following a challenging 2024. While the fiscal deficit on a cash basis aligned with the revised budget, S&P pointed out that the accumulation of arrears to suppliers and contractors led to a wider deficit on a commitment basis\u2014exceeding projections by 3.7 percentage points of GDP. \r\n In a more positive development, the agency noted Ghana\u2019s foreign exchange reserves are on a recovery path. \u201cIn 2024, the current account recorded its largest surplus on record, reaching $3.58 billion, or 4.4% of GDP,\u201d it said, attributing the surplus to a stronger trade balance and higher remittance inflows. \r\n "

"S&P Warns Ghana\u2019s Gold Purchase Initiative Threatens Cocoa Sector Stability"

BoG to Use Cedi@60 Celebration to Curb Dollarisation, Promote National PrideAMP

Banks Write Off GHS 1.05bn as Bad Debt AMP

Finance Minister to Present 2026 Budget on November 13AMP