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Bank of Ghana Signals Policy Review of Domestic Gold Purchase Program

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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.

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Ukraine Eyes Major Wheat Flour Production Facility in Ghana to Tap Into West Africa’s Growing Market

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The Ukrainian government is actively exploring establishing a wheat flour production facility in Ghana, a move aimed at strengthening bilateral agricultural cooperation and expanding Kyiv’s foothold in West Africa’s rapidly growing wheat market.

The proposal was disclosed following a high-level meeting on April 8, 2026, in Accra between Ghana’s Minister of Food and Agriculture, Eric Opoku, and Ukraine’s Deputy Minister of Agrarian Policy and Food, Denys Bashlyk.

Officials described the proposed industrial project as an extension of a Memorandum of Understanding (MoU) signed between the two nations in November 2025. That agreement seeks to create a hub for processing and distributing Ukrainian agricultural products in Ghana and the broader West African region.

Strategic Push into a Booming Market

While specific details—including the plant’s location, investment cost, and production capacity—have not yet been made public, the initiative is expected to boost Ghana’s domestic wheat processing capabilities significantly.

Ghana’s demand for wheat-based products—including bread, biscuits, pasta, pastries, instant noodles, and pizza—has been rising steadily. According to data from the United States Department of Agriculture (USDA), Ghana’s wheat imports surged by 56.7% over four years, rising from 697,309 tonnes in 2022 to 1.09 million tonnes in 2025.

For Ukraine, the project represents a strategic opportunity to gain a stronger presence in the Ghanaian market, where it currently has little footprint. As the world’s fifth-largest wheat exporter—after Russia, Canada, the United States, and Australia—Ukraine exported approximately 20.6 million tonnes of wheat in 2024.

From Raw Exports to Value-Added Processing

The development highlights growing interest by Eastern European agricultural powerhouses in investing directly in African processing infrastructure.

Rather than relying solely on raw commodity exports, countries like Ukraine are seeking to reduce dependence on volatile global markets by establishing local milling and distribution networks.

Such investments allow producer nations to capture more value along the supply chain while helping African nations reduce their reliance on imported finished products. For Ghana, a local Ukrainian-backed flour mill could stabilize supply, create jobs, and potentially lower costs for consumers.

Officials from both sides have indicated that feasibility studies are underway, with further announcements expected once technical and financial assessments are complete.

The project aligns with Ghana’s broader agenda to enhance food security, attract foreign direct investment in agriculture, and position itself as a regional agro-processing hub.

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Netherlands Reclaims Position as World’s Top Exporter of Cocoa Products, Ghana Remains Key Supplier

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Amsterdam, Netherlands – The Netherlands has overtaken Germany to become the world’s leading exporter of cocoa products in 2025, recording €12.4 billion in exports, according to new data from Statistics Netherlands (CBS).

The sharp rise in export value was driven by elevated global cocoa prices and strong international demand for semi-processed cocoa products used in chocolate manufacturing.

Nearly three-quarters of Dutch cocoa exports consist of intermediate goods such as cocoa butter, cocoa powder, and chocolate liquor, which are shipped to manufacturers across Europe and North America.

Germany remains the largest single market for these exports, followed by Belgium, France, the United Kingdom, and the United States.

West African countries, particularly Côte d’Ivoire and Ghana, continue to serve as critical suppliers of raw cocoa beans feeding Dutch processing hubs, especially around Amsterdam and the Zaanstreek industrial area.

The sustained high prices have been linked to poor harvests in West Africa caused by adverse weather conditions in recent years.

For Ghana, the development underscores its continued strategic importance in the global cocoa supply chain.

However, it also highlights the longstanding imbalance in the industry, where African nations primarily export raw beans while European processors capture the majority of the value through further processing and re-export of higher-value products.

Economists argue that while Ghana benefits from strong demand for its beans, greater investment in local processing capacity and industrialisation is needed to retain more value domestically and reduce heavy reliance on raw commodity exports. The Netherlands’ dual role as a major importer of raw beans and leading exporter of processed cocoa products further cements its position as Europe’s cocoa trading powerhouse.

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Ghana Nears Approval of Cannabis Licences as Country Prepares to Launch Regulated Industry

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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.

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