Bansah: Ghana’s 30% gold purchase deal could unlock US$3.5bn annually

Mining engineer and mineral economist Dr Kenneth Bansah says Ghana’s new policy to purchase 30% of gold produced by large-scale mining companies for local refining could significantly strengthen the country’s foreign reserves and support the stability of the cedi.

In an analysis shared following the Finance Minister’s 2026 Mid-Year Budget Review, Dr Bansah said the arrangement, first announced by the Ghana Gold Board (GoldBod) and reiterated by Finance Minister Dr Cassiel Ato Forson in Parliament, represents an important step toward increasing value retention from the country’s mineral resources.

According to Dr Bansah, Ghana’s large-scale mining sector has produced an average of 2.9 million ounces of gold annually over the past five years. Based on the new arrangement, the state could purchase approximately 870,000 ounces of gold each year.

He estimated that, after refining the gold to 99.99% purity, the output could be worth about US$3.5 billion annually, depending on prevailing international gold prices and production volumes.

Dr Bansah noted that if the refined gold is retained as part of the Bank of Ghana’s official gold reserves, it could help strengthen the country’s external reserves and enhance exchange rate stability.

While acknowledging that the value is smaller than the potential contribution from Ghana’s small-scale mining sector, he said the policy remains economically significant.

“The arrangement demonstrates how a country can retain more value from its mineral resources. It is a basic principle of reducing raw exports to retain more value locally,” he stated.

The policy forms part of government’s broader strategy to promote local value addition, increase gold reserves and enhance macroeconomic stability through the domestic refining of mineral resources.