The Bank of Ghana (BoG) has identified gold as a crucial strategic reserve asset that significantly influences economic growth.
However, the Central Bank emphasizes the need for responsible gold mining practices to fully harness its benefits while reducing environmental harm.
In response to these concerns, the BoG has initiated the Responsible Sourcing Programme, which aims to encourage ethical gold procurement.
This initiative includes the Domestic Gold Purchase Programme (DGPP), which outlines essential processes, Know Your Customer (KYC) protocols, due diligence requirements, supply chain transparency, and risk management practices.
The DGPP operates through two primary avenues: Gold for Reserves and Gold for Oil. By implementing stringent KYC and due diligence measures, the BoG ensures that its gold acquisitions conform to Ghana’s legal standards and do not contribute to human rights violations, conflict, or environmental degradation.
Under the Gold for Oil initiative, the government plans to utilize locally sourced gold to settle payments for imported oil, thereby establishing a direct barter system leveraging the gold reserves held by the Central Bank.
As detailed in the G40 Programme Framework dated February 3, 2023, oil payments can be conducted through direct barter, wherein suppliers accept gold in exchange for petroleum products, or via foreign exchange, where the BoG sells gold to brokers and uses the proceeds to fund oil imports.