The Bank of Ghana (BoG) has recognized gold as a vital strategic reserve asset with a significant impact on economic growth.
However, the Central Bank stresses the importance of responsible gold mining to maximize its benefits while minimizing environmental damage.
To address this, the BoG has launched the Responsible Sourcing Programme, designed to promote ethical gold procurement.
This framework includes the Domestic Gold Purchase Programme (DGPP), which outlines the processes, Know Your Customer (KYC) and due diligence requirements, supply chain transparency, and risk management.
The DGPP operates through two main channels: Gold for Reserves and Gold for Oil. With strict KYC and due diligence measures, the BoG ensures its gold purchases align with Ghana’s legal standards and do not contribute to human rights abuses, conflict, or environmental harm.
As part of the Gold for Oil initiative, the government aims to use domestically sourced gold to pay for imported oil, establishing a direct barter system with gold acquired by the Central Bank.
According to the G40 Programme Framework (dated February 3, 2023), oil payments can occur through direct barter, where suppliers accept gold for petroleum products, or through foreign exchange, where the BoG sells gold to brokers and uses the proceeds to finance oil imports.
Source: Adomonline