A prominent Ghanaian economist has criticised the government’s heavy reliance on gold extraction to stabilise the economy, arguing that it prioritises short-term gains over sustainable innovation and environmental protection.Prof Godfred Bokpin, a finance and economics lecturer at the University of Ghana, made the remarks during an appearance on TV3’s New Day programme, where he questioned the effectiveness of the Ghana Gold Board (GoldBod) initiative.
“If all that it takes to manage an economy is to just produce gold, cause destruction to the environment and just keep pumping that gold… to shore up the stability of your currency, this is not innovation I fail to celebrate.” Saids Prof Bokpin.
The comments come amid ongoing debate over GoldBod, established in early 2025 by the National Democratic Congress (NDC) government to centralise the purchase and export of gold from small-scale miners.
The board, led by CEO Sammy Gyamfi, aims to boost foreign exchange reserves through the Gold for Reserves programme, formalising artisanal and small-scale mining (ASM) operations and reducing smuggling.
Supporters of the initiative highlight its achievements. According to GoldBod’s official reports, the programme exceeded its 2025 target of 100 metric tonnes of ASM gold exports, generating more than $10 billion in foreign exchange by year-end.This revenue has contributed to strengthening Ghana’s reserves and stabilising the cedi, with gold exports reaching approximately $5 billion in the first half of 2025 alone – surpassing the full-year total for 2024.Gold prices have surged globally, from around $2,300 per ounce in late 2024 to nearly $4,500 by December 2025, bolstering these figures.
However, critics, including opposition New Patriotic Party (NPP) figures, have pointed to financial and environmental drawbacks. A recent International Monetary Fund (IMF) review under Ghana’s Extended Credit Facility programme reported that the Bank of Ghana (BoG) incurred losses of $214 million from GoldBod operations by the end of the third quarter of 2025. The IMF attributed these to trading losses, off-takers’ fees, and operational costs, including purchases at below-market prices to incentivise small-scale miners. The losses represent about 0.2% of Ghana’s GDP, raising concerns over fiscal sustainability.
GoldBod and the BoG have strongly rejected the IMF’s characterisation of these as outright losses. In a statement, the BoG described the claims as “speculative” and emphasised the broader macroeconomic benefits, including reduced inflation and enhanced transparency in gold flows. Sammy Gyamfi, in an interview on TV3, dismissed the reports as misleading and reiterated that GoldBod has not incurred losses, focusing instead on its role in formalising the sector. Civil society leaders have echoed this, arguing that the programme’s gains in reserve buildup outweigh short-term costs.
Environmental concerns have also fuelled the controversy. Prof Bokpin’s critique underscores fears that GoldBod’s expansion of small-scale mining has exacerbated illegal mining, known locally as galamsey, leading to widespread deforestation, water pollution, and health risks. Critics argue that the initiative indirectly encourages unsustainable practices, with some NPP supporters on social media linking it to ongoing environmental degradation. GoldBod officials, including convener Senyo Hosi, have countered that the board is not responsible for galamsey and that formalisation efforts aim to mitigate such issues.
The partisan divide is evident. NPP communicators have amplified Prof Bokpin’s remarks to question NDC policies, with posts on X suggesting the initiative amounts to “gambling Ghana’s future on gold”. In response, NDC affiliates have defended GoldBod’s record, accusing opponents of ignoring the $10 billion revenue milestone.
Prof Bokpin has previously urged value addition in gold processing rather than raw exports, noting that Ghana captures only 1-5% of the metal’s value. He has also called for diversified economic strategies, comparing Ghana unfavourably to non-resource-rich African nations that maintain stable currencies without similar environmental costs. As Ghana approaches the end of 2025, the debate highlights tensions between immediate economic stabilisation and long-term sustainability. The government has allocated GH¢4.4 billion to GoldBod in the 2025 budget to expand its operations, but calls for greater transparency and environmental safeguards persist.