The Bank of Ghana (BoG) has announced a significant milestone in its Domestic Gold Purchase Programme, revealing that over $5 billion worth of gold reserves have been accumulated since the program’s inception in 2021. As of December 2023, the country’s gold reserve build-up reached 65.4 tonnes, with an additional 23 tonnes purchased between January and June 2024, valued at approximately $1.6 billion. This brings Ghana’s total gold reserves to 73 tonnes.

A portion of these reserves, amounting to $1.6 billion, has been used as equity in the government’s “Gold for Oil” initiative, aimed at stabilizing the Cedi and curbing the rising costs of foreign currencies.

These developments were disclosed during the official commissioning of the Royal Gold Ghana Limited (RGGL) refinery in Accra, a joint venture between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, an Indian gold refinery firm. The $450 million refinery was unveiled in a ceremony graced by Vice President Dr. Mahamudu Bawumia, who lauded the successful construction and emphasized the government’s commitment to anchoring the country’s currency with gold to strengthen it against foreign exchange fluctuations.

“This historic achievement in the natural resources sector marks a significant milestone in Ghana’s journey towards economic transformation and industrialization,” Dr. Bawumia stated, highlighting the government’s dedication to adding value to the country’s natural resources, creating jobs, and ensuring sustainable economic growth.

The state-of-the-art refinery is equipped with cutting-edge technology that meets international standards, significantly boosting Ghana’s capacity to locally process gold and enhance value addition. It is expected to achieve London Bullion Market Association (LBMA) accreditation within three years, provided it sources all its gold dore from responsible sources.

Ghana has long exported its gold in raw form, missing out on significant revenue and job creation opportunities. The new refinery is poised to change this by offering premium value for refined gold, creating between 80 to 120 direct jobs and up to 500 indirect employment opportunities. The facility will enable Ghana to refine gold to 24-carat, 99.99% purity, meeting LBMA standards and ensuring the country retains more economic value from its gold exports.

Dr. Bawumia emphasized that the government’s intention to refine all gold produced in Ghana will further enhance the country’s economic independence and resilience. “With the BoG’s Domestic Gold Purchase Programme and the new refinery, we are positioning Ghana as the gold hub of Africa,” he concluded, marking the beginning of what he described as a new era for Ghana’s economy.