Governance and Leadership Analyst, Senyo Amekplenu, has warned that Ghana can no longer continue to absorb the mounting quasi-fiscal losses arising from the Domestic Gold Purchase Programme (DGPP), urging urgent reforms to prevent further strain on the public purse.

According to Mr Amekplenu, the debate should no longer focus on how to explain or justify the losses associated with the programme, but rather on how to restructure it to at least break even while still delivering its intended national benefits.

“As a country, we can no longer continue to absorb quasi-fiscal losses arising from the Domestic Gold Purchase Programme, regardless of the bold incentives the programme seeks to deliver,” he stated. “The more critical question is how to restructure the programme to at least break even.”

His comments come amid heightened scrutiny of the DGPP, which was introduced by the Bank of Ghana as part of efforts to stabilise the cedi, boost foreign exchange reserves and maximise value from Ghana’s gold resources. Recent disclosures linked to Ghana’s IMF-supported programme have, however, pointed to significant losses, with reports indicating an exposure of about US$214 million.

Mr Amekplenu is calling for immediate restructuring of the programme through a coordinated engagement involving the Bank of Ghana, GoldBod and the government. He proposed a structured round-table process to agree on comprehensive measures to address and offset the recurring losses.

A key concern raised by the analyst is the dual role currently played by GoldBod as both regulator and trader in the gold market, which he says creates an inherent conflict of interest and weakens effective oversight.

“GoldBod should focus strictly on its core mandate as a regulator. A regulator cannot simultaneously be a market participant without distorting incentives and accountability,” he cautioned.

He also questioned the sole-buyer arrangement under which GoldBod operates, arguing that the monopoly structure should be reviewed. Introducing controlled competition in gold purchasing, he said, would improve price discovery, reduce inefficiencies and help curb operational losses.

In addition, Mr Amekplenu called for a national dialogue and an independent appraisal to establish the true causes of the losses already incurred under the programme. He stressed the need to involve industry experts to advise the government on practical and sustainable measures to prevent a recurrence.