The losses were necessary – Manteaw defends GoldBod’s costly push to win Ghana’s gold market

Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), has defended the financial losses incurred by the Ghana Gold Board (GoldBod) in its pursuit to dominate Ghana's gold market. Dr. Manteaw noted that Ghana has faced losses in previous gold purchase programs but emphasized that these losses should not be a concern in itself.

He challenged the assertion that the current situation is unprecedented, stating that "we've made losses in previous years too, and that didn't become a problem."

The policy analyst urged a broader perspective, advocating for the consideration of the foreign exchange generated by GoldBod. He highlighted that in 2024, the Gold for Oil programme and domestic gold purchases resulted in a total loss of ¢5.7 billion, comprising $1.8 billion from the Gold for Oil programme and $3.8 billion from domestic gold purchases.

Despite this significant loss, Dr. Manteaw argued that Ghana's gold export revenue that year was only $4 billion. He maintained that incurring a loss to generate substantial foreign exchange should not be viewed as a failure, comparing it to a transaction cost.

Dr. Manteaw also emphasized the broader economic impacts of GoldBod's activities, citing foreign exchange stability, lower import costs, reduced inflation, and interest rates as key benefits. He noted that these factors contribute to a stable business environment, enabling proper planning and investment in machinery, thus supporting the government's 24-hour economy.

Dr. Manteaw acknowledged the concerns about the sustainability of these losses but reiterated that the circumstances under which GoldBod entered the market necessitated such financial commitments. He stated that GoldBod had to offer better prices to miners, who were already established in relationships with foreign buyers. This necessity to offer better prices at market prices resulted in uncovered costs but was deemed essential for winning over Ghanaian miners.

Dr. Manteaw urged stakeholders to assess GoldBod's losses within the context of the challenging market conditions it faced when mandated to regulate gold trade.