Controversy Surrounds Ghana's Gold-for-Reserves Program Amid Claims of Mismanagement and Monopoly

The Gold-for-Reserves program in Ghana is facing intense scrutiny following claims of significant financial losses and allegations of unfair practices favoring a state-designated aggregator. Dzifa Gunu, Acting CEO of Ghana Digital Centres, criticized Kojo Oppong Nkrumah for his absence from a JoyNews program where he was expected to address concerns about the program, which reportedly incurred $214 million in losses, as highlighted by the IMF. Gunu accused Nkrumah of 'chickening out' from defending the government's policy amid rising public concern.

Bright Simons, Vice President of IMANI Africa, echoed these concerns, stating that the program disproportionately benefits Bawa Rock Limited, the only aggregator licensed under the scheme, due to its access to interest-free funding from the Bank of Ghana. This financial advantage allows Bawa Rock to operate at lower costs, undermining competition and disadvantaging private aggregators who must rely on commercial loans at higher interest rates. Simons criticized the lack of transparency in the aggregator selection process, which he believes could erode public confidence in the program.

In response to the criticisms, Sammy Gyamfi, CEO of the Ghana Gold Board (GoldBod), defended the program, asserting that the reported losses are by design and not due to mismanagement. He explained that the Gold-for-Reserves initiative, introduced in 2022, aims to enhance foreign exchange reserves and is not a reflection of GoldBod's operational failures. Gyamfi also clarified that the licensing process for gold aggregators was rigorous, with Bawa Rock being the only company to meet eligibility criteria out of 31 applicants, thus dispelling claims of monopoly.

As the debate continues, stakeholders are calling for greater transparency and fairness in the Gold-for-Reserves program to ensure a level playing field for all participants in Ghana's gold sector.