Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has called for a united national effort to reform and strengthen Ghana’s Domestic Gold Purchase Programme (DGPP) and the Gold-for-Reserves (G4R) framework, following the disclosure of heavy financial losses recorded under the initiative.
Dr. Asiama made the call after the Bank of Ghana clarified that the DGPP and G4R programmes recorded cumulative losses of GH¢7.1 billion over several reporting periods. Figures presented by the central bank showed net losses of GH¢74.44 million in the initial phase of the programme, which later rose sharply to GH¢1.372 billion and eventually climbed to GH¢5.662 billion as operational challenges increased.
The BoG Governor addressed the issue while appearing before Parliament’s Public Accounts Committee, where he responded to questions from lawmakers on the design, implementation and performance of the gold purchase initiative. The DGPP was introduced to allow the central bank buy locally produced gold using the local currency, reduce pressure on foreign exchange reserves, stabilise the cedi, and build Ghana’s gold reserves through the Gold-for-Reserves scheme.
During the hearing, Dr. Asiama urged lawmakers, regulators, mining sector players and other stakeholders to move away from blame-sharing and focus on reforms that can improve efficiency, protect national resources and support broader economic stabilisation. He stressed that the weaknesses identified in the programme did not emerge suddenly and require collective solutions rather than political arguments.
According to him, the Domestic Gold Purchase Programme can still be beneficial to Ghana if it is properly restructured and better managed. He said the central bank remains convinced that the idea behind the programme is sound, especially in a country that is one of Africa’s leading gold producers.
“Our appeal is to move in a unified manner. We want everyone to get on board to reform this better and to sharpen its efficiency so that it supports economic stabilisation and proper reserves build-up going forward,” Dr. Asiama told members of the committee.
The Governor disclosed that the Bank of Ghana is preparing to engage the Ghana Gold Board, also known as GoldBod, alongside other key stakeholders in the mining, financial and security sectors. According to him, the discussions will focus on reviewing the pricing structure, operational processes and risk management framework of the programme to reduce losses and improve transparency.
Dr. Asiama also invited technical experts within Parliament to participate in the reform process, noting that legislative input will be critical in strengthening governance and ensuring public accountability. He said the central bank is open to constructive scrutiny and practical solutions that will help the programme achieve its original objectives.
The BoG Governor warned that abandoning the DGPP entirely could worsen illegal gold smuggling and revenue leakages, which he described as extremely damaging to the national economy. He said Ghana loses huge amounts of revenue annually through unreported gold exports and illicit trading activities, adding that the scale of losses from smuggling is “mind-blowing.”
“I believe that it can be made a win-win. The losses are not new. They existed before, so rather than apportion blame, let’s get to the table and see what we can do further,” he said.
Dr. Asiama noted that some steps had already been taken to reduce charges and operational costs associated with the programme, but more needs to be done to make it sustainable. He stressed that strengthening monitoring systems, improving coordination with licensed gold exporters and tightening controls across the gold value chain could significantly reduce losses.
Ghana remains Africa’s top gold producer and relies heavily on gold exports as a major source of foreign exchange. However, illegal mining and smuggling continue to pose serious challenges, undermining government revenue and weakening formal trade channels. Analysts say the Domestic Gold Purchase Programme was designed to help formalise gold trading, increase central bank reserves and limit the outflow of gold through illegal routes.
Members of the Public Accounts Committee raised concerns about the size of the losses and called for stronger oversight, improved risk controls and clearer performance benchmarks. Some lawmakers also stressed the need for better collaboration between the Bank of Ghana, the Ministry of Finance, GoldBod and security agencies responsible for combating illegal gold trade.
As Ghana continues to face economic pressures linked to currency stability, inflation and foreign exchange shortages, the future of the DGPP remains a key issue for policymakers. Dr. Asiama’s call for cooperation highlights the importance of balancing reform, accountability and national interest in managing the country’s natural resources.
