Abu Jinapor Writes On Domestic Gold Purchase Programme

Recent remarks made by the Flagbearer of the New Patriotic Party (NPP), Abu Jinapor, regarding the Domestic Gold Purchase Programme sparked debate. As the former Minister of Mines when the initiative was launched, Dr. Mahamudu Bawumia clarifies key points about the program. Conceived by Dr. Bawumia during the economic difficulties stemming from the COVID-19 pandemic and the Russia-Ukraine war, the Domestic Gold Purchase Programme was introduced on June 17, 2021.

Initiated by the Economic Management Team, the program marked the first instance of the Ghana government purchasing gold domestically to bolster gold reserves and enhance foreign reserves. Unlike previous efforts in 1960 where gold was bought from abroad and shipped to the Bank of Ghana, this innovative plan involved the Bank of Ghana acquiring gold locally from licensed aggregators and mining firms, subsequently paying them the local equivalent of the prevailing market price.

At the program's launch, Ghana's gold reserves were at a steady 8.77 tonnes. Although the Bank of Ghana aimed to double this amount within five years, as of December 2024, just under four years into the program, the reserves had surged to 30.53 tonnes, nearly quadrupling their initial figure. The Ministry actively engaged with the Ghana Chamber of Mines and the Ghana National Association of Small Scale Miners, leading to the issuance of policy directives on November 23, 2023.

These directives, detailed in public records, mandated large-scale mining companies to sell 20% of their refined gold to the Bank of Ghana before exporting the rest, while all community mining schemes and licensed small-scale miners were required to sell their gold to the government through the Precious Minerals Marketing Company (PMMC).

These measures, emphasized in international media reports, aimed to curtail the sale of illegally sourced gold and involved the Minerals Commission, PMMC, and the Bank of Ghana in their enforcement.

Despite these efforts, gold exports soared to a record 11.6 billion US dollars in 2024, up significantly from 7.6 billion in 2023 and 6.6 billion in 2022. Crucially, these gold reserves amassed under the Domestic Gold Purchase Programme have become a cornerstone of Ghana's national economy. Addressing the 77th Annual New Year School and Conference at the University of Ghana on January 6, 2026, Bank of Ghana Governor Dr. Johnson Asiama highlighted that the program has bolstered external buffers and macroeconomic stability, playing a pivotal role in the Bank of Ghana's stabilization efforts.

This government's "Ghana Accelerated National Reserve Accumulation Policy" (GANARAP) essentially represents a rebranding of the Domestic Gold Purchase Programme. Notably, more than half of the gold accumulated during the Akufo-Addo/Bawumia administration's tenure under the Domestic Gold Purchase Programme has been sold, reflecting the program's profound impact on Ghana's economic landscape.