The Bank of Ghana is backing increased domestic processing of Ghana’s major export commodities as part of efforts to reduce the country’s vulnerability to global commodity-price shocks.
Governor Dr Johnson Asiamah said Ghana remained heavily exposed to movements in the prices of gold, cocoa and oil.
He noted that gold alone accounted for about 68% of Ghana’s exports, meaning changes in international gold prices could have a significant effect on the country’s external accounts.
“When gold prices move, it means a lot to us,” he said.
The governor explained that a rise in US interest rates could put downward pressure on gold prices, with immediate implications for Ghana’s external position.
He said diversification of the country’s reserves and export base was therefore important.
The Bank of Ghana is also supporting measures to promote greater processing of Ghana’s commodities.
Dr Asiamah cited increased oil refining, greater cocoa processing and domestic gold refining as areas that could help reduce exposure to international price shocks.
He welcomed efforts to restore production at Tema Oil Refinery and said Ghana could benefit from processing more cocoa into finished products such as chocolate for markets across Africa.
On gold, he said increased domestic refining could generate additional economic benefits.
“If we are able to process a higher amount of our gold exports, that brings a lot of benefits to the economy,” he said.
The governor said these measures, combined with diversification and hedging initiatives, could help strengthen Ghana’s resilience against external commodity-price shocks.
