A new technical report has found that the Ghana Gold Board (GoldBod) has delivered significant macroeconomic benefits, formalising previously smuggled gold and boosting foreign exchange inflows, far exceeding reported trading losses at the Bank of Ghana (BoG).
The report, presented to GoldBod by economists from the University of Ghana and the University of Ghana Business School, highlights that artisanal and small-scale mining (ASM) gold exports increased from 63.6 tons in 2024 to 103 tons in 2025.
The additional 39.4 tons is believed to represent gold previously lost to smuggling, now entering the formal system.
Valued at US$96.5 million per ton, the formalised gold translates to approximately US$3.8 billion in foreign exchange, demonstrating a benefit–cost ratio of 18:1 when compared with the BoG’s reported trading loss of US$214 million. The report notes that formalising just 2.2 tons of gold would offset the reported loss.
The study also points out that GoldBod’s activities reduce reliance on costly external borrowing. ASM exports facilitated by GoldBod in 2025 generated US$10.8 billion in FX inflows. Had Ghana borrowed equivalent funds externally at interest rates of 7–10%, it would have incurred annual interest costs of US$756 million to US$1.08 billion.
Even considering only the reduction in smuggling, the avoided annual interest costs range from US$266–380 million, creating a recurring economic benefit.
Beyond financial gains, the report highlights broader macroeconomic effects:
Strengthened international reserves (≈ US$11–12 billion)
Exchange-rate stabilisation
Reduced domestic cost of external debt (≈ GHS 6.2 billion)
Lower import bill valuation (≈ GHS 50.6 billion for Jan–Oct 2025)
Disinflation through reduced exchange-rate pass-through
The report also clarifies that the BoG “loss” is largely an accounting effect, not a cash deficit. GoldBod purchases gold at near-retail exchange rates to deter smuggling, while FX inflows are recorded at the interbank rate. True economic costs are estimated at just 2.5% of gold value.
According to the report, GoldBod should be seen as a policy tool for macroeconomic stabilisation rather than a profit-driven entity. Recommendations include sustaining price competitiveness to prevent smuggling, improving transparency in BoG reporting, gradually reducing policy costs, and strengthening governance and oversight.
Prof. Festus Ebo Turkson, one of the report’s authors, emphasised that “GoldBod converts illicit gold flows into formal FX, strengthens Ghana’s external position, and supports macroeconomic stability. Evidence shows it is a high-return policy intervention for the economy.”
The report underscores that careful management of GoldBod, combined with fiscal discipline and enforcement against smuggling, can maintain Ghana’s growing FX stability and bolster the country’s broader economic resilience.
