The Government of Ghana has reached an agreement with the country’s large-scale mining companies to implement a key component of the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), requiring mining companies to sell 30% of their gold output to the Bank of Ghana (BoG) and the Ghana Gold Board (GoldBod) for local processing and refining.
The agreement was formalised through a Memorandum of Understanding (MoU) signed by the Ministry of Finance, Ministry of Lands and Natural Resources, Bank of Ghana, Ghana Gold Board and the Ghana Chamber of Mines, which represented the country’s large-scale mining companies.
Speaking at the signing ceremony, Finance Minister Dr Cassiel Ato Forson said the agreement followed extensive consultations between government, the Chamber of Mines, mining companies, the central bank and the Gold Board.
He explained that the MoU concludes negotiations on how the 30% gold purchase component of GANRAP will be implemented, with the policy taking effect from the date of signing.
“Today’s signing of the memorandum of understanding signifies that we have successfully come to a mutual understanding that that policy will be implemented effective the date of signing,” Dr Ato Forson said.
Gold to Be Refined Locally
Under the arrangement, gold purchased from large-scale mining companies will be processed and refined locally before being transferred to the Bank of Ghana to support the country’s reserve accumulation efforts.
Dr Ato Forson said the agreement forms part of government’s broader efforts to strengthen Ghana’s foreign exchange reserves and promote macroeconomic stability.
Buah Commends Mining Companies
The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, described GANRAP as an important initiative whose potential impact on macroeconomic stability and financial management cannot be overemphasised.
He commended the Chamber of Mines and large-scale mining companies for their cooperation during negotiations and assured the industry that the ministry would continue engaging stakeholders to address challenges that may emerge during implementation.
Mr Buah stressed the need for flexibility as the new arrangement takes shape, noting that resolving implementation challenges would ultimately serve the national interest.
BoG Pledges Support
The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, pledged the central bank’s support for the successful implementation of the agreement.
Dr Asiama acknowledged the contributions of the Ghana Gold Board, Ministry of Finance and Ministry of Lands and Natural Resources in bringing the stakeholders together.
He said the Bank of Ghana would work closely with all relevant institutions to ensure that the programme delivers maximum benefits to the Ghanaian economy.
Mining Industry Supports GANRAP
The Chief Executive Officer of the Ghana Chamber of Mines, Eric Asubonteng, said the mining industry fully supports the objectives of GANRAP, particularly its focus on strengthening Ghana’s macroeconomic resilience.
According to him, building a reserve buffer capable of helping Ghana withstand external economic shocks would benefit both the wider economy and businesses operating in the country.
Mr Asubonteng also welcomed the programme’s objective of establishing internationally accredited gold refineries in Ghana.
He disclosed that the Chamber had, even before the introduction of GANRAP, explored opportunities to support local gold refining, including engagements with refineries in Ghana and South Africa.
Call for Incentives Beyond 2028
However, Mr Asubonteng called for GANRAP to evolve beyond its current timeframe and become an incentive-based system that encourages local processing and refining.
He cited Tanzania, India and South Africa as examples of countries that use incentives to promote local beneficiation of minerals.
He said such an approach could position Ghana as a major gold refining hub for the West African sub-region, taking advantage of the significant volumes of gold produced locally and in neighbouring countries.
“We need to look at GANRAP beyond even 2028,” he said.
The Chamber of Mines pledged to continue working with government and other stakeholders to address implementation challenges while maintaining focus on the programme’s broader objectives.
The signing of the MoU marks a significant step towards implementing GANRAP, bringing government, the Bank of Ghana, Ghana Gold Board and large-scale mining companies under a common framework for gold purchases, local refining and reserve accumulation.
Story by Freedom Etsey Lavoe