The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has hailed the establishment of Royal Gold Ghana Limited (RGGL), a local gold refinery, as a significant boost to the Bank of Ghana’s successful Domestic Gold Purchase Programme (DGPP).
Speaking at the opening of RGGL? Dr. Addison emphasized the positive impact this initiative will have on the economy.
Dr. Addison noted that since the inception of the DGPP, the Bank of Ghana has acquired 65.4 tons of gold, valued at US$5.07 billion. This year alone, the bank has purchased 23 tons of gold worth approximately US$1.8 billion.
“These acquisitions have significantly bolstered the bank’s foreign exchange buffers, often surpassing expectations under the IMF program,” he said.
According to him, projected export earnings for gold in 2024 are estimated to be close to US$10 billion, making gold the leading export commodity for Ghana.
Dr. Allison noted that this value chain offers vast opportunities for job creation, increased foreign exchange earnings, and overall economic development.
The governor observed that despite Ghana’s long history of gold exports, the full potential of these exports has not been fully realized locally. The export of raw gold without value addition leads to lost revenue and job opportunities. The establishment of RGGL aims to change this by promoting gold beneficiation and value addition, which will contribute to economic growth, poverty reduction, and the improvement of livelihoods in Ghana.
Dr. Addison also emphasized the role of the new refinery in curbing gold smuggling by providing a ready market for artisanal and small-scale miners, thereby promoting transparency and accountability in gold trading. Once RGGL receives London Bullion Market Association (LBMA) Good Delivery List accreditation, Ghana will benefit from reduced dependence on foreign refineries, enhanced foreign exchange reserves, and a decrease in external borrowing.
Additionally, the refinery will enable the production of gold coins and other artifacts, broadening investment options in the financial markets and contributing to financial stability.
The Governor concluded by expressing confidence that the local gold refinery will align with the Bank of Ghana’s objectives to build adequate foreign reserves and stabilize the economy during adverse shocks, ultimately achieving its core mandate of price stability.
He congratulated the Board, Management, and Staff of RGGL on their achievement and urged key stakeholders, including the government, mining companies, and artisanal miners, to support this initiative to promote the growth of Ghana’s gold industry and build a prosperous future for the nation.
