Dr Ernest Addison, Governor of the Bank of Ghana (BoG), has highlighted the substantial economic benefits of the gold value chain, emphasizing its potential for job creation and increased foreign exchange earnings.
Speaking at the inauguration of Royal Gold Ghana Limited (RGGL) on August 8, 2024, Dr Addison revealed that gold is Ghana’s leading export commodity, with export earnings for 2024 projected to approach US$10 billion.
Despite a long history of gold exportation, Dr Addison noted that Ghana has yet to exploit its gold resources’ economic potential fully.
He criticized exporting raw gold without adding value locally, resulting in lost revenue and job opportunities.
The establishment of RGGL, a new gold refinery, marks a significant step toward addressing these challenges by promoting gold beneficiation and value addition.
Dr Addison explained that the refinery would contribute to economic growth, poverty reduction, and improved livelihoods for Ghanaians.
He stressed that enhancing value addition to Ghana’s gold could bolster foreign exchange earnings, improve the balance of payments, and provide resilience against external economic shocks.
The Governor also addressed the persistent problem of gold smuggling in the country.
By offering a reliable market for artisanal and small-scale miners, RGGL is expected to reduce the incentive for smuggling and foster greater transparency and accountability in gold trading.
Looking ahead, Dr Addison pointed out that achieving the London Bullion Market Association’s (LBMA) Good Delivery List accreditation would further benefit Ghana by reducing reliance on foreign refineries.
This accreditation would also enable the Bank of Ghana to diversify its foreign exchange reserves, accumulate more refined gold reserves, and support financial stability by producing gold coins and other artefacts.
The BoG’s Domestic Gold Purchase Programme (DGPP) has already proven successful, with the Bank accumulating 65.4 tons of gold valued at US$5.07 billion since the program’s inception.
This year alone, the BoG has purchased 23 tons of gold worth approximately US$1.8 billion.
Dr Addison expressed confidence that the new refinery would enhance the success of the DGPP and support Ghana’s external payment obligations.
In his closing remarks, 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 this vital initiative.
He emphasized the collective effort needed to advance Ghana’s gold industry, add value to natural resources, and build a prosperous future for the nation.
