Dr Ernest Addison, Governor of the Bank of Ghana (BoG), has praised the launch of Royal Gold Ghana Limited (RGGL) as a significant advancement for the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) and a significant boost to Ghana’s economy.
At the inauguration of RGGL, Dr Addison highlighted the refinery’s potential to enhance the Bank of Ghana’s gold acquisition strategy, which has seen notable success. Since the DGPP’s launch, the Bank of Ghana has procured 65.4 tons of gold, valued at approximately US$5.07 billion.
In the current year alone, the bank has purchased 23 tons of gold worth around US$1.8 billion, significantly strengthening its foreign exchange reserves and exceeding expectations under the IMF program.
Dr Addison noted that gold is poised to remain Ghana’s top export commodity, with projected export earnings in 2024 estimated at nearly US$10 billion.
He underscored the refinery’s role in tapping into this economic potential, which has historically been underutilized due to the export of unprocessed gold.
The governor emphasized that RGGL will facilitate the addition of gold, previously lost through raw gold exports.
This initiative is expected to generate substantial job opportunities, increase foreign exchange earnings, and spur economic development.
By fostering gold beneficiation, RGGL aims to mitigate revenue and job losses and contribute to poverty reduction and improved livelihoods in Ghana.
Dr Addison also addressed the issue of gold smuggling, noting that RGGL’s presence would offer a legitimate market for artisanal and small-scale miners, promoting transparency and accountability in the gold trade.
The refinery’s future accreditation by the London Bullion Market Association (LBMA) Good Delivery List is anticipated to decrease Ghana’s reliance on foreign refineries, enhance foreign exchange reserves, and reduce external borrowing.
RGGL’s operations will also extend to producing gold coins and other financial artefacts, broadening investment opportunities and contributing to financial stability.
In closing, Dr Addison expressed confidence that establishing RGGL aligns with the Bank of Ghana’s goals of building robust foreign reserves and stabilizing the economy against adverse shocks, ultimately supporting its core mandate of maintaining price stability.
He extended his congratulations to the RGGL board, Management, and Staff and called on government officials, mining companies, and artisanal miners to support the refinery, fostering the growth of Ghana’s gold industry and securing a prosperous future for the nation.
