Mahama administration pivots from Eurobonds to bullion
By Leo Nelson
Ghana is betting big on its own gold. The question is whether the state can execute without repeating the sector’s long history of leakages, smuggling and inefficiency.
Sammy Gyamfi, Chief Executive of the Ghana Gold Board (GoldBod), has unveiled the Ghana Accelerated National Reserve Accumulation Programme (GANRAP) as the centrepiece of a strategic pivot. The goal: use domestic bullion to insulate the economy from external shocks COVID, the Russia-Ukraine war, or whatever comes next.
“We want to accumulate about 15 months of import cover,” Gyamfi said. “So that when there is any external shock, Ghana’s economy can stand the test of time.”
The operational target is ambitious: purchase three tonnes of gold every week. At current prices, that translates to over $400 million in weekly economic value through 2028.
The procurement strategy draws from two streams. The artisanal and small-scale mining (ASM) sector historically prone to smuggling will supply 2.45 tonnes weekly. Large-scale mining entities will provide the remaining 0.55 tonnes.
Under the previous Domestic Gold Purchase Programme, the Bank of Ghana bought directly but at high cost. GoldBod, established in April 2025, claims to have slashed accumulation costs from 16% to 7.25% with an aggressive target of 3% in coming years.
The mechanism: GoldBod now purchases at the interbank exchange rate rather than forex bureau rates. That eliminates the exchange rate gaps that previously bled the system.
The logic is straightforward. By mopping up ASM gold that would otherwise be smuggled and channelling it into official reserves, GANRAP creates a steady supply of foreign exchange independent of Eurobonds or bilateral loans.
That gives the Bank of Ghana ammunition to stabilise the cedi without resorting to inflationary monetary expansion. The government also retains pre-emption rights to 20% of large-scale production.
Gyamfi describes it as an “economic war chest” and a “resilient fortress” against contagion effects from geopolitical tensions.
Fifteen months of import cover is a lofty target far exceeding standard benchmarks for emerging economies. Achieving it requires not just ramping purchases but also drastically reducing smuggling, which the ASM sector has never convincingly managed.
GoldBod’s cost reduction claims are unaudited. The transition from an 16% to 7.25% cost structure depends heavily on the interbank rate mechanism staying favourable and on large-scale miners accepting terms they previously resisted.
There is also the question of timing. GANRAP is a medium-term structural play. An external shock tomorrow would find Ghana still far from its 15-month cover goal.
The Mahama administration is right to seek alternatives to expensive Eurobond issuance and unpredictable donor support. Ghana’s gold endowment is a genuine strategic asset.
But turning that asset into a functional buffer requires more than ambitious targets. It requires sealing the smuggling routes, enforcing compliance from large miners, and maintaining the political will to keep the programme technocratic not captured by rent-seekers.
Gyamfi has laid out a vision. Delivering it is another matter entirely.