Business
Bank of Ghana Signals Policy Review of Domestic Gold Purchase Program
The Bank of Ghana (BoG) has flagged growing sustainability concerns over its Domestic Gold Purchase Programme (DGPP), prompting a deeper policy review to assess its long-term viability, timing, and balance-sheet implications.
While the initiative has been instrumental in bolstering Ghana’s foreign reserves and supporting cedi stability—particularly amid favorable global gold prices—the central bank now warns that continued operation without recalibration could pose risks to monetary policy objectives and overall financial health.
Opening the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama acknowledged the programme’s “critical” and “deliberate” role in strengthening external buffers.
“The role of the Domestic Gold Purchase Programme in supporting stability remains critical,” he stated. “While the programme has played an important and deliberate role in strengthening external buffers, members will need to consider how its timing, sustainability, and balance-sheet implications should inform the calibration of policy and the ongoing policies to build reserves.”
Launched in June 2021, the DGPP enables the BoG to buy locally produced gold—primarily from artisanal, small-scale, and licensed miners—using Ghanaian cedi, converting it into monetary gold for reserves diversification and forex liquidity support.
The programme has significantly contributed to reserve growth, with Ghana’s gold holdings rising notably in recent years (e.g., from 8.74 tonnes targeted for doubling, and broader increases to around 30 tonnes by 2024-2025 in related reports). It has helped achieve reserve targets ahead of schedule, reduced reliance on hard-currency borrowing during economic stress, and supported cedi appreciation amid high global gold prices.
However, challenges have emerged. Audited figures show substantial losses on the programme: GH¢74.44 million in 2022, GH¢1.553 billion in 2023, and GH¢4.068 billion in 2024—totaling over GH¢7 billion—stemming from trading costs, premiums paid to attract small-scale gold, and quasi-fiscal burdens. An IMF review highlighted a $214 million quasi-fiscal loss in one assessment, while critics point to inefficiencies like rewarding illegal or untaxed mining without corresponding fiscal returns, environmental degradation, and balance-sheet strain on the central bank.
The concerns align with IMF recommendations for reforms to ensure costs do not fall solely on the BoG and to enhance transparency. From January 2026, the Ghana Gold Board (GoldBod) is set to assume fuller operational control of downstream aspects, ending the BoG’s direct agency role in small-scale trading. Reforms include reducing intermediation fees, improving cost-efficiency, achieving competitive pricing, and separating roles between GoldBod, the Ministry of Finance, and the BoG for better accountability.
Analysts note that any recalibration could impact reserve management, forex liquidity, and investor confidence, especially ahead of the April 2026 IMF programme review. The BoG stresses that the programme remains a strategic tool but must evolve to avoid undermining policy credibility or creating long-term risks.
As gold prices hover near historic highs, the review underscores Ghana’s balancing act: leveraging its status as Africa’s top gold producer for macroeconomic gains while ensuring fiscal prudence and sustainability in reserve-building strategies.
Business
Ghana Nears Approval of Cannabis Licences as Country Prepares to Launch Regulated Industry
Accra, Ghana – Ghana’s Narcotics Control Commission (NACOC) is in the final stages of reviewing applications for cannabis licences, with successful applicants expected to receive approval to begin operations soon, marking a significant milestone in the country’s efforts to develop a legal and regulated cannabis sector.
Deputy Director-General for Enforcement, Control, and Elimination, Alexander Twum-Barimah, disclosed this while speaking at the Kwahu Business Forum on Saturday.
He emphasised that the review process has been “thorough and deliberate” to ensure that only applicants who fully meet all legal, regulatory, and security requirements are granted licences. NACOC officials engaged with potential investors at the forum’s exhibition stand, providing details on various licence categories, including cultivation, processing, distribution, and export.
Mr Twum-Barimah stressed that the commission is committed to building a properly regulated industry that creates legitimate economic opportunities while maintaining strict controls to prevent misuse and illegal activities.
“The goal is to strike a balance between enabling economic development and safeguarding public health and security,” he said.
All licence holders will be subject to ongoing monitoring and compliance checks.
The development signals Ghana’s intention to harness the economic potential of cannabis through job creation, investment, and export revenue, while aligning with international best practices in regulation. Further updates on the licensing process are expected in the coming weeks.
Business
3 Things Ghana is Doing to Reduce Fuel Prices Amid Global Uncertainty
Accra, Ghana – As global oil prices continue to surge due to the ongoing Middle East conflict, the Ghanaian government has announced immediate and practical measures aimed at cushioning citizens from the impact of rising fuel costs.
Following an emergency Cabinet session chaired by President John Dramani Mahama, the government outlined three key interventions focused on direct price relief, affordable public transportation, and cutting unnecessary government expenditure on fuel.
Here are the 3 major steps Ghana is taking:
1. Suspension of Selected Taxes and Margins on Fuel
Ministers of Finance and Energy have been directed to suspend certain taxes and margins in the next fuel pricing window. This temporary reduction, which will last for four weeks (subject to review based on developments in the Middle East and global crude prices), is expected to ease the burden on consumers and transporters.
2. Massive Expansion of Affordable Metro Mass Transit Buses
The Minister for Transport has been tasked with fast-tracking the deployment of 100 newly acquired Metro Mass Transit buses onto high-traffic routes across the country. These state-owned buses will maintain significantly lower fares compared to private operators, offering citizens a cheaper and more reliable alternative for daily commuting.
3. Strict Enforcement of Ban on Fuel Allocations for Government Officials
All Ministers and senior government appointees have been reminded to strictly comply with President Mahama’s earlier directive cancelling fuel allocations and allowances. This move is aimed at reducing government expenditure on fuel and demonstrating leadership in belt-tightening during these challenging times.
These interventions form part of the government’s broader strategy to protect the economy and citizens from external shocks while hoping for de-escalation in the Middle East conflict.
Business
Upcoming Super El Niño Threatens to Worsen Global Food Crisis Amid Iran Conflict
Climate scientists and food security experts are warning that a powerful “super El Niño” expected later in 2026 could significantly intensify global food price pressures already heightened by the ongoing Middle East conflict involving Iran.
According to US meteorologists, there is roughly a one-in-three chance of a strong El Niño forming between October and December, while European models suggest an even higher probability of an exceptionally strong event.
A “super El Niño” occurs when sea surface temperatures in the eastern Pacific rise at least 2°C above normal. This phenomenon typically triggers extreme weather patterns, including severe droughts in key agricultural regions, which can sharply reduce crop yields for commodities such as cocoa, rice, sugar, food oils, coffee, bananas, and soy.
The timing is particularly concerning because the Iran conflict has already disrupted global fertilizer supplies and shipping routes through the Strait of Hormuz, driving up costs for fuel and agricultural inputs. Analysts say the combination of war-induced supply shocks and El Niño-driven weather extremes could create a “double squeeze” on food production and prices. The United Nations World Food Program has cautioned that prolonged conflict and elevated oil prices could push the number of acutely food-insecure people globally significantly higher.
Dawid Heyl of Ninety One noted that while the Russia-Ukraine war affected food markets, the current situation is more worrying due to its direct impact on fertilizer production and availability.
He warned that overlapping negative factors — geopolitical disruption and strong El Niño conditions — could prove especially damaging for vulnerable countries in Africa, India, Australia, Brazil, and Argentina.
Experts state that long-term resilience will require greater investment in climate adaptation, diversified supply chains, and international cooperation to protect global food security as geopolitical and climate risks increasingly intersect.
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