Audio By Carbonatix
Government has unveiled an ambitious new policy, the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), aiming to build a financial buffer equivalent to 15 months of import cover by the end of 2028.
Presenting the policy to Parliament on Wednesday, Finance Minister Dr. Cassiel Ato Forson described it as a strategic shift away from the "unsustainable" practice of borrowing to build reserves, opting instead to leverage the country's gold resources.
Dr. Forson outlined a target to add an average of US$9.5 billion annually to gross international reserves, funded by the purchase of approximately 3.02 tonnes of gold per week.
This would be achieved through the Ghana Gold Board (GOLDBOD) acquiring gold from the small-scale sector and the invocation of a state pre-emptive right to purchase 20% of output from large-scale miners.
"This is to build an 'economic war-chest' to withstand global economic shocks, to secure macroeconomic stability, and sustain the economic gains made," Dr. Forson explained.
He argued that the previous model of using expensive swaps and Eurobond issuances, which cost the nation billions in interest payments, was no longer viable.
The policy aims to increase reserves from the current 5.7 months to 8.6 months by the end of 2026, 11.8 months by 2027, and finally to the 15-month target by 2028.
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