The Bank of Ghana (BoG) has revealed that more than $5 billion worth of gold reserves have been amassed under the Government’s Domestic Gold Purchase Programme since its launch in 2021.
By December 2023, the nation’s gold reserve build-up had reached 65.4 tonnes.
From January to June this year, the Central Bank acquired an additional 23 tonnes of gold, valued at approximately $1.6 billion, bringing the country’s total reserves to 73 tonnes.
A significant portion of this, $1.6 billion, was utilized as equity in the Government’s ‘Gold for Oil’ initiative, aimed at stabilizing the Cedi and curbing the rising demand for foreign currencies.
These details emerged during the official commissioning of the Royal Gold Ghana Limited (RGGL), a joint venture gold refinery, by Vice President Dr. Mahamudu Bawumia in Accra on Thursday.
The RGGL represents a collaboration between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, an Indian gold refinery firm.
At the unveiling ceremony of the $450 million refinery, Dr. Bawumia praised the PMMC and RGGL teams for the successful completion of the project. He emphasized that his administration would work on creating a policy framework to support the local currency with gold, thereby strengthening it against foreign currencies.
“It is with great joy that I address you today on the commissioning of the Royal Ghana Gold Refinery. This historic achievement in the natural resources sector, particularly in gold, marks a significant milestone in Ghana’s journey towards economic transformation and industrialization,” Dr. Bawumia remarked.
He highlighted the government’s commitment to adding value to the nation’s natural resources, creating jobs, and fostering sustainable economic growth. The partnership between the BoG and Rosy Royal Limited, he noted, symbolizes a shared vision for a prosperous future in Ghana’s precious minerals industry.
The state-of-the-art refinery, equipped with advanced technology meeting international standards, is expected to significantly enhance the country’s capacity to process gold locally, thereby increasing value-addition opportunities. The RGGL aims to achieve London Bullion Market Association (LBMA) accreditation within three years, provided it sources all its gold dore responsibly.
For over a century, Ghana has been exporting gold in its raw form, missing out on substantial revenue and job creation opportunities. Dr. Bawumia stressed that the current administration is determined to make value addition a crucial aspect of the country’s export strategy.
“The launch of this refinery is particularly important as it fulfills a key part of this vision. Originally, this vision was to be realized through a joint venture between the PMMC and RGGL, with the PMMC granting part of its land for the construction of the refinery,” Dr. Bawumia stated.
Construction of the refinery began in 2018 and was completed in 2022. Dr. Bawumia commended the efforts of the Board, Management, and staff of both the Bank of Ghana and PMMC for their unwavering support in bringing this national project to fruition.
“This refinery is a strategic investment that significantly contributes to the government’s efforts to add value to our mineral resources,” Dr. Bawumia emphasized.
Ghana’s annual gold production averaged 3.92 million ounces (122.5 tonnes) between 2018 and 2023, all of which was exported unrefined, leading to lost revenue and job opportunities. The new refinery is expected to create 80 to 120 direct jobs and up to 500 indirect employment opportunities, boosting domestic tax revenue through corporate taxes. It will also enable Ghana to refine gold to 24 carats, 99.99% purity—equivalent to a good delivery bar at the LBMA standard.
With the ability to locally refine gold, Ghana can now sell it at a more favorable price, retaining more of its economic value. Dr. Bawumia also noted that the government’s plan to refine all domestically produced gold would further enhance the country’s economic independence and resilience.
“With the BoG’s domestic gold purchase programme, which began in 2021, and this new refinery, we are positioning Ghana as the gold hub of Africa,” Dr. Bawumia asserted.
“This marks a new era for Ghana and ushers us into our vision of building a resilient economy anchored on our mineral resources in a golden age of natural resource governance,” he concluded.