Ghana must redesign colonial-era economic system – Prof. Bokpin warns against growth that doesn’t create jobs

Economist Professor Godfred Bokpin of the University of Ghana has taken issue with the government's handling of illegal mining, or galamsey, criticizing the emphasis placed on gold trading gains. Speaking on Joy FM's Super Morning Show, he stated that the public's 2024 election vote was for decisive action against irresponsible mining and protection of Ghana's forests and water sources.

Bokpin pointed out that the government is more focused on showcasing financial benefits from gold exports through the Ghana Gold Board, known as GoldBod.

He emphasized that the celebration of GoldBod's gains ignores the significant environmental damage caused by galamsey activities, including the destruction of water bodies and other natural resources. Bokpin remarked on Monday, August 24, that while the government's focus on macro-economic stability may appear beneficial, it fails to acknowledge the severity of the environmental crisis and the existential threats it poses.

The controversy deepened with the International Monetary Fund's report, which revealed that the Bank of Ghana's increased gold purchases had led to a cumulative net policy cost of approximately US$1.7 billion, roughly 1.5% of Ghana's Gross Domestic Product. GoldBod and government officials argue that this figure represents policy costs for stabilizing the cedi and building reserves, rather than an operational loss for GoldBod.

GoldBod maintains that it has generated an operational surplus of over GH¢900 million, while contributing to the formal economy by mobilizing more than US$10.8 billion in foreign exchange. The Board has also highlighted the success of its programme in strengthening reserves, reducing gold smuggling, and enhancing currency stability.