GoldBod had ‘design defects’ that could have been avoided – Prof Bokpin

Economist Professor Godfred Alufar Bokpin has stated that the GoldBod intervention, aimed at retaining foreign exchange from Ghana's gold sector, has suffered from significant "design defects." Speaking on Joy News' PM Express, Prof Bokpin acknowledged the GoldBod's role in reducing illicit gold smuggling and gold export data discrepancies.

However, he argued that better planning and expert input could have minimized the losses associated with the domestic gold purchase programme. He noted that the gains in foreign exchange retention must be weighed against the cost of the intervention, which he said came at a significant loss to the country. Prof Bokpin rejected attempts to attribute macroeconomic stability gains directly to GoldBod, pointing out that macroeconomic stability stems from fiscal and monetary policies managed by the Bank of Ghana and the Ministry of Finance.

He pointed out that the abolition of the 1.5% withholding tax on artisanal and small-scale gold producers also resulted in fiscal losses for the state. Prof Bokpin emphasized that a full value-chain assessment would reveal losses beyond the initially discussed GH¢1.7 billion figure. Despite the costs, he acknowledged that the benefits from retaining gold-related foreign exchange were substantial, but also stressed the need to recognize the considerable costs associated with the intervention.

The government, GoldBod, and the Bank of Ghana have acknowledged that these losses are not sustainable in the long run, leading to a planned exit arrangement to reduce the losses.