The Chief Executive Officer of the Ghana Gold Board, Sammy Gyamfi, Esq., has stated that the Gold-for-Reserves (G4R) programme delivered a clear net economic gain to Ghana in 2025, notwithstanding claims that the initiative incurred operational costs estimated between US$214 million and US$300 million.
According to Mr. Gyamfi, even if the reported cost figures are assumed to be accurate, they do not amount to a national economic loss when weighed against the scale of foreign exchange mobilised and the broader macroeconomic benefits recorded over the period.
He explained that the Bank of Ghana, working closely with its aggregator, the GoldBod, generated more than US$10.8 billion in foreign exchange in 2025 from artisanal and small-scale mining (ASM) gold exports alone.
This level of forex accumulation, he noted, provided critical support for Ghana’s external obligations, market liquidity, and overall economic stability.
Mr. Gyamfi argued that incurring an expense of about US$214 million to mobilise over US$10 billion in foreign exchange represents a sound economic decision.
He pointed out that had Ghana opted to raise a similar amount through external borrowing, the combined cost of interest and transaction fees would have been in the region of US$1 billion, significantly higher than the reported G4R programme cost.
Beyond the direct forex inflows, the GoldBod CEO highlighted the programme’s far-reaching impact on key macroeconomic indicators.
He noted that the Ghana cedi appreciated by approximately 40 percent against the US dollar in 2025, strengthening from an average retail rate of about GH¢16 to the dollar in 2024 to below GH¢12 by the end of 2025.
Interbank rates, he added, hovered around GH¢10.4 to the dollar as of December 31, 2025, marking the first time in decades that the cedi recorded an annual average appreciation against major trading currencies.
Mr. Gyamfi further pointed to a sustained decline in inflation, which fell for 11 consecutive months from 23.8 percent in December 2024 to 6.3 percent in November 2025.
This development, he said, translated into significant reductions in food prices, fuel costs, and general consumer prices, easing the cost of living and improving household welfare.
Data from the Alliance for a Green Revolution in Africa indicates that food prices declined by an average of 32 percent, with food inflation recording single-digit levels for the first time in nearly five years.
He also cited improvements in the credit environment, noting that the Ghana Reference Rate, the benchmark for lending declined sharply from 28.31 percent in December 2024 to 15.9 percent in December 2025, reflecting improved macroeconomic confidence and reduced borrowing costs.
According to the GoldBod CEO, the strengthened foreign reserves position enabled Ghana to meet its 2028 reserve target three years ahead of schedule.
This, he said, resulted in savings exceeding GH¢16 billion in external debt servicing and payments to Independent Power Producers, while importers and consumers benefited from estimated savings of over GH¢60 billion due to reduced import costs.
Mr. Gyamfi cautioned that the pursuit of short-term profit through heavy discounts, taxes, or deductions on local ASM gold purchases would have undermined these gains.
He referenced historical data showing that such measures in the past led to sharp declines in gold export volumes and increased smuggling, depriving the state of much-needed foreign exchange.
The opportunity cost of failing to mobilise the US$10.8 billion in forex, he stressed, would have far exceeded the reported G4R programme cost for 2025.
Overall, Mr. Gyamfi maintained that the net effect of the G4R programme in 2025 was overwhelmingly positive.
He described the initiative as a strategic economic intervention whose benefits, currency stability, lower inflation, reduced debt servicing costs, and improved living conditions far outweigh its operational costs.
