Ghana will begin purchasing 30% of gold output from major mining companies from July 1, marking one of Africa’s most ambitious attempts to convert mineral wealth into stronger financial reserves and domestic industrial capacity.

The agreement requires large-scale miners to sell nearly a third of their production in dore form to the Ghana Gold Board, widely known as GoldBod. Transactions will be settled in Ghanaian cedis and priced at a discount of 0.55% to the Bank of Ghana’s reference rate.

The move forms part of a broader strategy by Accra to strengthen foreign exchange reserves, reduce dependence on external financing and establish Ghana as a regional refining hub.

Building Africa’s gold refining hub

Gold acquired under the programme will be refined domestically before being shipped to London Bullion Market Association-certified facilities for final melting and stamping prior to entering the Bank of Ghana’s reserves.

Authorities are targeting LBMA accreditation for at least one local refinery by 2030, a milestone that could significantly increase value retention within the country’s mining sector.

Central banks globally have accelerated bullion purchases in recent years as elevated prices improve gold’s attractiveness as a reserve asset and hedge against currency volatility.

Reserves expansion accelerates

Ghana launched its domestic gold purchase programme in 2022, initially securing agreements with miners to supply 20% of annual production to the central bank.

The initiative has already increased national holdings to 19.2 metric tons as of February. Following a review earlier this year, the government raised its ambitions substantially, targeting up to 157 metric tons by 2028, equivalent to roughly 15 months of import cover.

Negotiations with major producers including Newmont, Gold Fields and Zijin Mining helped pave the way for the expanded supply agreement.

Gold sector reforms gather pace

Africa’s largest gold producer is simultaneously reshaping its mining sector through sweeping reforms. These include a sliding royalty regime of up to 12%, restrictions on foreign participation in local gold trading and mandatory state purchases of mining output.

Ghana produced a record 6.5 million ounces of gold last year, supported by both industrial operators and artisanal miners. Among the country’s flagship operations is the Tarkwa Mine operated by Gold Fields.

The government’s broader objective is clear: transform Ghana from a raw commodity exporter into a higher-value participant across the global gold supply chain while strengthening the country’s resilience against external economic shocks.