The Bank of Ghana has announced a comprehensive review of its Domestic Gold Purchase Programme (DGPP), amid growing scrutiny over its effectiveness in curbing illicit gold exports and stabilising foreign exchange reserves.
Launched in 2023, the DGPP was designed to formalise artisanal and small-scale gold mining—locally known as “galamsey”—by allowing licensed operators to sell refined gold directly to the central bank. The initiative aimed to reduce smuggling, boost national gold reserves, and strengthen the cedi by increasing dollar inflows.
However, senior officials at the central bank acknowledged in a statement this week that implementation challenges—including limited uptake by miners, bottlenecks in refining capacity, and concerns over pricing transparency—have undercut the programme’s intended impact.
“The Bank of Ghana is committed to ensuring that the DGPP delivers on its macroeconomic objectives,” the statement read. “A thorough review is underway to assess structural gaps, stakeholder feedback, and global best practices.”
Ghana is Africa’s largest gold producer, yet an estimated 40% of its annual output is believed to be smuggled out of the country, according to a 2024 report by the Precious Minerals Marketing Company (PMMC), a state-owned entity. The loss deprives the country of critical foreign exchange earnings at a time when the cedi remains under pressure and external debt servicing burdens persist.
The review is expected to conclude in early 2026, with possible revisions to payment mechanisms, licensing frameworks, and partnerships with local refiners.