Africa’s largest gold producer ends central bank gold-buying arrangement

Wed Aug 12 2026

Ghana has ended an arrangement under which the Bank of Ghana (BoG) financed the purchase of locally produced gold through the Ghana Gold Board (GoldBod), marking a significant shift in how the country finances its domestic gold aggregation programme.

v Ghana has ended Bank of Ghana's financing of GoldBod's local gold purchases, transitioning to a self-funded model.

v GoldBod now raises funds directly from commercial banks and gold offtakers to aggregate gold for export and reserves.

v This move marks a major step towards GoldBod’s operational and financial independence from the central bank.

v The new financing approach is already showing positive results, with GoldBod continuing its aggregation activities independently.

GoldBod CEO Sammy Gyamfi disclosed the development on August 11, saying the institution stopped receiving funding from the central bank in March 2026 and has since moved to a self-funded model.

Under the new arrangement, GoldBod raises financing directly from commercial banks and gold offtakers to purchase and aggregate gold for export and reserve accumulation.

From central bank funding to self-financing

The arrangement dates back to Ghana’s Domestic Gold Purchase Programme (DGPP), established by the Bank of Ghana to increase its gold reserves by purchasing gold produced domestically.

Before GoldBod was created, the Precious Minerals Marketing Company (PMMC) served as the central bank’s buying agent under the programme. GoldBod inherited that role when it was established in April 2025, continuing to purchase and aggregate gold with funding provided by the Bank of Ghana.

According to GoldBod, the central bank also covered the costs associated with gold aggregation under the arrangement.

That model has now ended.

GoldBod said its transition to direct financing is intended to strengthen its operational independence while allowing it to continue mobilising substantial volumes of gold for exports and reserve accumulation.

“The shift marks a major step towards GoldBod’s operational and financial independence,” the institution said in its statement.

The move also changes the relationship between GoldBod and the Bank of Ghana, with the gold authority now taking greater responsibility for financing its core purchasing activities.

Why the arrangement is changing

Gyamfi said the new financing model has already produced positive results, with GoldBod able to raise funds from commercial banks and offtakers without relying on direct financing from the central bank.

The development comes as Ghana seeks to maximise the economic value of its position as Africa’s largest gold producer, particularly by using locally produced gold to support foreign-exchange generation and reserve accumulation.

GoldBod said the self-funded model will allow it to operate more independently while maintaining its gold aggregation activities.

The change does not mean Ghana is abandoning its domestic gold purchase strategy. Instead, the country is separating the purchase and aggregation of gold from the financing and management of its monetary reserves.

For the Bank of Ghana, the shift potentially reduces the direct financial burden associated with funding gold purchases. For GoldBod, it places greater responsibility on the institution to secure financing and manage the commercial side of the country's gold aggregation programme.

The new structure therefore represents a broader evolution of Ghana's gold strategy, with GoldBod increasingly positioned as the commercial engine for domestic gold aggregation while the central bank focuses on managing the country's accumulated reserves.

Source: https://africa.businessinsider.com/