GoldBod’s $1.7bn loss is worth it; forex gains have stabilised Ghana’s economy, Manteaw says

Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), contends that the $1.7 billion loss incurred by the Ghana Gold Board (GoldBod) is justified by the foreign exchange gains and positive economic outcomes generated by the program. The economist argues that losses should not be evaluated in isolation, as previous governments also incurred substantial costs through gold purchase programs.

Throughout 2022, 2023, 2024, and 2025, Ghana experienced losses, yet these figures did not generate the same degree of concern. Manteaw questioned why the current situation appears more problematic than past losses. He emphasized the importance of considering the scale of GoldBod's operations alongside the foreign exchange it has brought into the economy.

In 2024, for example, Ghana experienced a total loss of ¢5.7 billion through gold-related programs, while receiving $1.8 billion from Gold for Oil and $3.8 billion from domestic gold sales. Manteaw contends that such losses, often referred to as transaction costs, must be weighed against the economic benefits of securing foreign exchange.

He believes that the true value lies in the relationship between the expenditure and the resulting forex gains, rather than focusing solely on the loss figure. According to Manteaw, the program's broader impact on the economy outweighs its financial cost. The improved foreign exchange stability has facilitated better business planning, lower import costs, and investment opportunities.

He noted that forex stability enables businesses to plan effectively, and reduced import costs have created investment opportunities. Manteaw also highlighted how forex stability can support the government's 24-hour economy by encouraging businesses to import machinery through incentives. Stable forex conditions can lead to lower inflation and interest rates, creating a foundation for economic growth.

While concerns about the sustainability of these losses exist, Manteaw emphasized that GoldBod's initial strategy must be understood in the context of the challenges it faced when entering the gold market. He explained that GoldBod had to offer competitive prices while purchasing gold at market rates, often higher than rates offered by other foreign buyers.

Manteaw argued that the losses should be viewed in light of GoldBod's unique position in the market and the competitive pressures it faced.