GoldBod had ‘design defects’ that could have been avoided – Prof Bokpin
Economist Professor Godfred Alufar Bokpin says the GoldBod intervention has significantly helped Ghana to retain foreign exchange from the country’s gold sector but argues that the programme has suffered major “design defects”.
Economist Professor Godfred Alufar Bokpin has criticized the GoldBod program for its design flaws in a recent interview on Joy News' PM Express. While acknowledging GoldBod's success in increasing gold-related foreign exchange for Ghana, he argues that the program has suffered significant financial losses. Bokpin suggests that better planning and expert input could have minimized these losses, emphasizing the need for a value chain approach.
He also rejects claims that macroeconomic stability can be directly attributed to GoldBod, stating that it is primarily the responsibility of the Bank of Ghana and the Ministry of Finance. Bokpin points out additional costs to the state, including the abolition of the 1.5% withholding tax on artisanal and small-scale gold producers.
When considering a full value-chain assessment, he believes the losses associated with the program could exceed GH¢22 billion. Despite these concerns, he acknowledges that the benefits of retaining gold-related foreign exchange are substantial. However, he emphasizes that the costs of the intervention are significant and unsustainable in their current form.
The government, GoldBod, and the Bank of Ghana have acknowledged the need for a reduction in losses, with a planned exit arrangement aiming to decrease them from around 17% to about 5%.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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