The Bank of Ghana (BoG) has announced that its Domestic Gold Purchase Program (DGPP) has accumulated over $5 billion in gold reserves since its inception in 2021. The program, which aims to strengthen the country’s economic stability and enhance its gold reserves, has amassed 73 tonnes of gold as of June 2024, including an additional 23 tonnes purchased in the first half of the year.
This gold reserve buildup is a key component of Ghana’s broader strategy to leverage its natural resources for economic transformation. The BoG has also used a portion of these reserves—valued at $1.6 billion—as equity in the government’s “Gold for Oil” initiative, aimed at stabilizing the cedi and reducing the country’s reliance on foreign currencies.
The announcement was made during the official commissioning of the Royal Gold Ghana Limited (RGGL), a $450 million joint venture gold refinery between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, an Indian firm. Vice President Dr. Mahamudu Bawumia, who officiated the ceremony, lauded the partnership as a significant milestone in Ghana’s efforts to add value to its natural resources.
The establishment of the RGGL marks a major step forward in Ghana’s quest to become a leading gold refining hub in Africa. The state-of-the-art refinery is expected to receive London Bullion Market Association (LBMA) accreditation after three years of operation, further enhancing the country’s capacity to refine gold to the highest international standards. Dr. Bawumia emphasized that the refinery will create jobs, increase domestic tax revenue, and support the government’s vision of economic independence and resilience.