Dr Ernest Addison, Governor of the Bank of Ghana (BoG), has praised the establishment of Royal Gold Ghana Limited (RGGL), a new local gold refinery, as a significant development for Ghana’s economic landscape.
At the refinery’s inauguration on August 8, 2024, Dr. Addison emphasized the strategic advantages of having a domestic gold refining facility.
He noted that the refinery will enable the BoG to diversify and organically increase its foreign exchange reserves while accumulating refined gold reserves, lessening the country’s reliance on external borrowing.
The local production of gold coins and other artefacts is expected to act as a safe-haven asset, broaden investment options in financial markets, and contribute to economic stability.
Dr Addison highlighted that gold remains Ghana’s leading export commodity, with export earnings for 2024 projected to approach US$10 billion.
He pointed out that although Ghana has exported gold for over a century, the full economic potential of the gold value chain has yet to be realized.
Exporting raw materials without value addition results in lost revenue and job opportunities.
The establishment of RGGL is anticipated to advance gold beneficiation and value addition, which Dr Addison believes will spur economic growth, reduce poverty, and improve Ghanaians’ livelihoods.
He stressed that adding value to Ghana’s gold resources could enhance foreign exchange earnings, improve the balance of payments, and provide buffers against external economic shocks.
Dr Addison also addressed the issue of gold smuggling, asserting that the new refinery would help mitigate this challenge by offering a reliable market for artisanal and small-scale miners.
This, in turn, is expected to promote transparency and accountability in gold trading.
Dr Addison mentioned that achieving the London Bullion Market Association’s (LBMA) Good Delivery List accreditation for RGGL would further benefit Ghana by reducing dependence on foreign refineries.
The refinery’s success is integral to the BoG’s Domestic Gold Purchase Programme (DGPP), which has significantly increased the Bank’s foreign exchange buffers.
Since the program’s inception, the BoG has purchased 65.4 tons of gold valued at US$5.07 billion, with 23 tons valued at approximately US$1.8 billion acquired this year alone.
Dr Addison expressed confidence that the refinery would support Ghana’s external payment obligations and align with the BoG’s objectives of building adequate foreign reserves to stabilize the economy and achieve price stability.
In conclusion, Dr Addison congratulated RGGL’s Board, Management, and staff on their achievement and urged vital stakeholders, including the government, mining companies, and artisanal miners, to support the initiative.
He emphasized the importance of working together to promote the growth of Ghana’s gold industry and build a prosperous future for the nation.
