ACCRA, Ghana — Ghana’s government has unveiled an ambitious economic policy aimed at transforming the West African nation’s financial future by leveraging its gold resources to build a $25 billion “economic war chest,” Finance Minister Dr. Cassiel Ato Forson announced Tuesday in a parliamentary address.

The Ghana Accelerated National Reserve Accumulation Policy (GANRAP) 2026-2028 seeks to increase the country’s international reserves to 15 months of import cover by the end of 2028—far exceeding the conventional three-month benchmark recommended for developing economies.

“This is Ghana’s first national policy deliberately designed to build external reserves and secure the future of our country,” Forson told lawmakers, describing the initiative as essential to “break the cycle of economic downturns” that have historically plagued the economy.

Strategic Shift from Borrowing to Gold

At the heart of the policy is a fundamental shift away from what the government describes as unsustainable borrowing practices that characterized previous reserve-building efforts.

According to the policy document presented to Parliament, between 2017 and 2024, Ghana borrowed approximately $21.7 billion to support reserve accumulation, incurring interest costs of $3.84 billion alone—plus additional billions in local currency payments.

“We cannot continue borrowing our way to stability,” Forson said, pointing to expensive swap arrangements, sale-and-buy-back agreements, and Eurobond issuances that left the country with crippling debt service obligations.

In 2026 alone, Ghana is required to pay $1.5 billion to Eurobond holders from previous borrowings.

Instead, the government is betting on gold—specifically, historically high global prices that have seen the precious metal trade at unprecedented levels. The policy targets the purchase of approximately 3.02 tonnes of gold per week, which at projected prices of $5,000 per ounce would generate annual gross receipts of approximately $25.28 billion.

How the Gold Will Be Acquired

The strategy operates on two parallel tracks. First, the newly established Ghana Gold Board will acquire a minimum of 2.45 tonnes of gold weekly from the Artisanal Small-scale Mining (ASM) sector—effectively mopping up about 127 tonnes annually. This alone is projected to generate over $20 billion in foreign exchange each year.

Second, the government will invoke “preemption rights” under the Ghana Gold Board Act and Minerals and Mining Act to purchase 20 percent of large-scale mining output—approximately 0.57 tonnes per week. Crucially, these transactions will be conducted in Ghanaian cedis at prevailing interbank rates, supporting local currency demand while building reserves.

The gold acquired from large-scale miners must be in doré form and processed in-country, supporting local refineries in their quest for London Bullion Market Association (LBMA) certification.

Learning from History

Forson placed the policy within a broader historical context, drawing parallels to Asian economies following the 1997 financial crisis.

“After the 1997 Asian Financial Crisis, the most affected countries embarked on aggressive foreign reserve accumulation as a key policy response,” he noted. “This was driven by a desire for self-insurance against future sudden capital reversals and crises.”

Those reserves, he argued, helped Asian economies weather the 2008 Global Financial Crisis without depleting their buffers—a model Ghana now seeks to emulate.

The policy also responds to what the government describes as Ghana’s historically problematic reserve trajectory: episodic accumulation linked to opportunistic external borrowings and seasonal cocoa exports, followed by rapid drawdowns to meet obligations. Reserves plummeted from 5.4 months of import cover in April 2021 to under 2.3 months by September 2023 following a Eurobond issuance.

Safeguards Against Past Failures

To address governance concerns that have plagued Ghana’s mining sector—particularly illegal mining, or “galamsey”—the policy incorporates multiple safeguard mechanisms.

An Inter-Agency Committee co-chaired by the Finance Minister and Lands Minister will oversee compliance. Crucially, gold acquired under the preemption arrangement can only be sold by the central bank with prior approval of both Cabinet and Parliament.

The government also outlined risk management strategies addressing price volatility through hedging mechanisms, production risks through modernization of mining technology, and environmental concerns through intensified enforcement against illegal mining and targeted land reclamation programs.

Broader Economic Context

The announcement comes as Ghana experiences what the government describes as a “decisive macroeconomic turnaround” following the 2022-2023 economic crisis. According to the policy document, real GDP growth averaged 6.1 percent in the first three quarters of 2025, inflation declined sharply from 23.8 percent in 2024 to 3.8 percent in January 2026, and public debt fell from 61.8 percent of GDP in 2024 to 45.3 percent.

The current account posted a surplus of $9.1 billion in 2025—up from $1.5 billion the previous year.

“These macroeconomic gains have delivered meaningful relief to households and businesses through reduction in fuel prices, food prices, cost of doing business, and cost of living,” Forson told Parliament.

International Context

Ghana is not alone in leveraging high gold prices. The policy document notes that major producers including China, Russia, and Australia are all capitalizing on elevated prices to strengthen external buffers. China continues to expand domestic refining capacity, while Russia channels proceeds into reserve accumulation as a shock absorber against financial sanctions.

For Ghana, the stakes are existential. With cocoa production undermined by price volatility and climate risks, and oil output declining due to years of underinvestment, gold has emerged as the most reliable instrument for rapid reserve accumulation.

“If Government had borrowed $10 billion at the 2025 yields of 8.0 percent, the cost to the nation would have been $800 million in just one year,” Forson said, contrasting this with the Ghana Gold Board’s 2025 performance of bringing in $10 billion at a cost of just $214 million.

The policy now awaits parliamentary approval. If implemented, Ghana would join a small group of nations with reserve buffers sufficient to withstand severe external shocks—a transformation Forson framed in generational terms.

“We seek to build lasting national prosperity for future generations,” he said.