Ghana’s Domestic Gold Purchasing Programme losses anticipated from outset – Economist
Dr Adu Owusu Sarkodie, an economist, has said that losses under Ghana’s Domestic Gold Purchasing Programme (DGPP) were anticipated because the initiative was designed around incentives to build reserves and curb gold smuggling. The post Ghana’s Domestic Gold Purchasing Programme losses anticipated from outset – Economist appeared first on Ghana Business News .
Ghana's Domestic Gold Purchasing Programme (DGPP) was expected to incur losses from the outset, according to economist Dr Adu Owusu Sarkodie. The programme, introduced by the government and the Bank of Ghana (BoG), aimed to build reserves, curb gold smuggling, and encourage artisanal and small-scale miners to sell through official channels.
Dr Sarkodie stated that incentives such as attractive pricing, favorable exchange rates, and tax concessions were offered to miners to participate in the program. The removal of a 1.5% withholding tax and exchange rate advantages were also included to promote sales through official channels. The International Monetary Fund (IMF) reported that the BoG incurred losses of approximately GH¢22 billion under the programme, largely due to scaling up operations and exchange rate differentials.
Dr Sarkodie emphasized that the financial implications of the DGPP were reflected in the BoG's audited financial statements and suggested that policymakers focus on reducing costs while maintaining the programme's objectives, not on whether losses occurred. He proposed reviewing cost components such as service charges, exchange rate differentials, and tax incentives to improve efficiency and reduce losses, while continuing to build reserves and tackle gold smuggling.
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