Ghana to buy 30% of all gold mined locally in major economic shake-up

The Ghanaian government has struck a landmark agreement to purchase 30% of the gold produced by all large-scale mining companies operating in the country, in a move officials say could transform the nation's gold industry and strengthen the economy.

The arrangement, which takes effect on 1 July 2026, will see mining firms sell nearly a third of their gold output to the Ghana Gold Board (GoldBod) before it is refined and added to the country's strategic reserves.

The agreement, reached between the government and the Ghana Chamber of Mines, forms part of a broader effort to increase Ghana's gold holdings, support the cedi and expand local value addition in one of Africa's leading gold-producing nations.

Under the deal, mining companies will sell 30% of their gold output in doré form — partially refined gold bars produced at mine sites — to GoldBod at a discount of 0.55%.

In a significant departure from previous arrangements, all transactions will be settled in Ghana cedis using the Bank of Ghana's reference exchange rate rather than in foreign currency.

Officials believe the policy could reduce pressure on the country's foreign exchange market while helping build a stronger stockpile of gold reserves.

The initiative is a key component of the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), an ambitious strategy aimed at increasing the country's foreign reserves to the equivalent of 15 months of import cover by the end of 2028.

The government says the agreement also supports its long-term industrialisation agenda by encouraging local refining and processing of gold.

Under the framework, all gold purchased by GoldBod will be refined in Ghana before being sent to a London Bullion Market Association (LBMA)-accredited refinery for final certification and stamping. The refined gold will then be transferred to the Bank of Ghana as part of the nation's reserve assets.

Authorities hope the policy will accelerate efforts to secure LBMA accreditation for at least one Ghanaian refinery by 2030, a development that could significantly enhance the country's position in the global bullion market.

The agreement is also aligned with President John Mahama's stated objective of ending the export of raw minerals by 2030 and ensuring more value from Ghana's natural resources is retained within the domestic economy.

The Memorandum of Understanding was signed by the Ministry of Finance, the Ministry of Lands and Natural Resources, the Ghana Gold Board, the Bank of Ghana and the Ghana Chamber of Mines.

Government officials say further details of the agreement will be announced on 29 June.

Why the deal matters

Economists say the agreement could have far-reaching implications for Ghana's economy.

By purchasing more gold domestically and building larger reserves, the government hopes to strengthen the country's financial buffers, improve confidence in the cedi and reduce reliance on foreign borrowing.

The success of the programme, however, will depend on effective implementation, the capacity of local refineries and the ability of GoldBod to finance large-scale gold purchases without creating additional fiscal pressures.