Finance Minister Dr. Cassiel Ato Forson has announced a set of policy measures aimed at strengthening Ghana’s foreign exchange reserves, improving gold sector governance, and reducing illegal mining and smuggling.

Presenting the policy directions in Parliament, he explained that government will revise the current arrangement under which the Bank of Ghana acquires 20 percent of large scale gold output.

He indicated that an Inter Agency Committee will be formed to ensure compliance by mining firms.

The committee, he noted, will be co chaired by the Ministers for Finance and Lands and Natural Resources, with membership drawn from the Governor of the Bank of Ghana, as well as the heads of the Minerals Commission and the Ghana Gold Board.

According to him, the Minister for Lands and Natural Resources will invoke the state’s preemption rights under the Ghana Gold Board Act, 2025 and the Minerals and Mining Act, 2006 to purchase a minimum of 20 percent of gold produced by large scale mining companies.

He stated that this is expected to translate into at least 0.57 tonnes of gold per week.

He stressed that the gold purchased will be in doré form and processed locally to promote value addition.

Payments, he added, will be made in cedis at the prevailing interbank exchange rate, with discount rates determined by volume.

Dr.Forson further explained that the refined gold will eventually be added to Ghana’s physical reserves, and that any future sale by the central bank will require prior approval from Cabinet and Parliament.

He maintained that these measures will improve transparency, promote local refining, and reduce acquisition costs while ensuring that mining companies meet their obligations.

Turning to the artisanal and small scale mining sector, he stated that the Ghana Gold Board will adopt strategies to purchase at least 2.45 tonnes of gold weekly through official channels.

Over the next three years, he projected that the country could mobilise about 127 tonnes of gold annually from the sector, which at current prices could generate more than 20 billion dollars in foreign exchange each year.

To achieve this, he noted that the Gold Board will secure sufficient funds to sustain market participation and assume full responsibility for signing off take agreements and selling gold procured from the sector starting March 2026.

He added that the Board will introduce risk management tools, including gold backed derivative trading and hedging programmes, to reduce market losses.

Dr.Forson also pointed to price incentives and bonuses for licensed miners as part of efforts to discourage smuggling and encourage legal sales.

Beyond the gold sector, he outlined broader measures to improve foreign exchange inflows, including the expansion of non traditional exports such as cashew, shea, and rubber, as well as efforts to revive the cocoa sector.

He mentioned the development of new oil palm plantations and the acceleration of new oil field projects, including Pecan, to support export earnings.

The minister also addressed energy sector financing, noting that Ghana has historically spent about three billion dollars annually to cover shortfalls and payments to independent power producers.

He explained that the proposed Gas to Power Transformation Policy, which includes the construction of a state owned 1,200 megawatt power plant and a second gas processing facility, will help conserve foreign exchange.

Dr.Forson emphasised that maintaining fiscal discipline, particularly achieving a primary surplus, remains critical to slowing the depletion of the country’s reserves.

By: Jacob Aggrey