Africa's largest gold producer grows gold reserves to massive $11.9 billion despite a $1.9 billion loss from a program

Ghana’s central bank incurred massive losses of 22 billion cedis ($1.9 billion) in 2025 under a domestic gold purchase program. Despite the financial hit, Africa’s largest gold producer successfully grew its bullion reserves to $11.9 billion by the end of the year.

The Bank of Ghana launched its domestic gold purchase program with a clear objective: to bolster the nation’s foreign-exchange reserves and stabilize the cedi. To execute the plan, the central bank provided the necessary financing to a government organization known as the Gold Board, or GoldBod. While the initiative succeeded in expanding the country’s bullion reserves, the mechanics of acquiring gold from local miners came at a steep financial cost.

Where the Financial Losses Originated

High service fees, assay charges for testing the metal, and complex trading margins all contributed to the deficit.

These operational friction points severely impacted the central bank’s balance sheet, pushing its negative equity to 6.7% of the nation’s gross domestic product.

Growth in International Reserves Despite the Deficit

Even with the billions lost in operational overhead, the core strategy achieved its primary monetary objective. The program helped raise Ghana’s international reserves by $3.9 billion, pushing the total valuation of the country’s bullion holdings to $11.9 billion by the conclusion of 2025.

Shifting Financial Responsibility to GoldBod

To shield the Bank of Ghana from sustaining further damage to its financial health, the government instituted a structural shift in how the program operates. Responsibility for purchasing gold has been officially transferred away from the central bank and moved directly to GoldBod.

Africa's largest gold producer grows gold reserves to massive $119 billion despite a $19 billion loss from a program — Photo: Businessinsider

The state authorized a 5 billion cedi payment, equivalent to $430 million, to facilitate this transition. Under the new framework, the government and GoldBod will absorb the operational expenses, ensuring these costs are formally itemized and tracked within the national budget rather than absorbed entirely by the central bank’s ledger.

The Mandate of the Ghana Gold Board

Established in 2025, GoldBod serves as the exclusive agency authorized to purchase gold directly from Ghana’s artisanal and small-scale miners. By centralizing these local acquisitions, the board aims to keep a larger share of the mining sector’s economic value within the country while steadily expanding foreign exchange reserves to protect the local currency.