Ghana, a leading global gold producer, has increasingly relied on gold purchases to enhance economic stability. The Domestic Gold Purchase Programme (DGPP) launched by the Bank of Ghana (BoG) in 2021 seeks to boost foreign exchange reserves through initiatives like Gold4Oil and Gold4Reserves. However, the challenge remains in balancing these economic goals with environmental sustainability and ethical sourcing, particularly within the artisanal and small-scale mining (ASGM) sector.
In this two-part series, Blay & Associates examines the evolving landscape of gold sourcing in Ghana through the Domestic Gold Purchase Programme (DGPP), concerns over illegal mining, environmental degradation, and human rights violations persist, making responsible gold sourcing a critical policy priority.
Part I explores the Bank of Ghana’s Responsible Gold Sourcing Policy Framework, introduced in 2024, which aims to align Ghana’s gold industry with international ethical standards while ensuring financial resilience. This framework is crucial in addressing the challenges of artisanal and small-scale mining (ASGM) and balancing Ghana’s economic and environmental responsibilities. We assess Ghana’s gold sourcing model, comparing it with global best practices in Mongolia, Ecuador, the Philippines, and Ethiopia, and highlight how Ghana leads among African gold-producing nations in integrating sustainability into its gold reserves strategy.
We also analyse the five key gold sourcing channels under the DGPP, the implementation of Know Your Customer (KYC) and Due Diligence (DD) procedures, and the compliance mechanisms that safeguard the integrity of Ghana’s gold market. The article underscores the framework’s emphasis on transparency, risk management, and sustainability, particularly in fostering ethical mining, reducing environmental impact, and improving the livelihoods of mining communities.
Looking ahead, Part II will delve into the anticipated establishment of Ghana’s Gold Board, its potential impact on policy enforcement, and the broader implications for Ghana’s position in the global gold market. As the country refines its approach to sustainable gold sourcing, the ongoing evolution of its regulatory framework will determine its ability to balance economic growth with responsible resource management.
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