Ghana has finalized an MoU to secure 30% of large-scale miners’ gold output for strategic reserves under the Government’s ‘Galarma’ initiative, aiming to achieve a 15-month import cover by 2028. Finance Minister Dr Cassiel Ato Forson announced the agreement on Thursday, August 13, 2026, stating it represents a crucial component of the government’s strategy to bolster Ghana’s foreign exchange reserves and strengthen the economy against external vulnerabilities. The initiative, a key element of the Government’s broader plan to increase Ghana’s international reserves to a level equivalent to 15 months of import cover, represents a significant shift in the country’s financial reserves. The move stems from a broader effort to build Ghana’s foreign exchange reserves and enhance economic stability, reflecting a substantial increase in Ghana’s reserves to US$13.8 billion, representing approximately 5.7 months of import cover, a substantial increase from the previous three-month benchmark. The Galarma strategy, introduced in 2026 as a three-year initiative, follows a robust macroeconomic performance in 2025, which saw Ghana’s economy record a 6.1% GDP growth rate while inflation fell to 5.4%, alongside a significant increase in gross international reserves to US$13.8 billion, exceeding the conventional three-month benchmark. The agreement supports the government’s objective to increase Ghana’s international reserves to 15 months of import cover by the end of 2028. The government’s current account surplus of US$9.1 billion, coupled with a gross international reserves increase of US$13.8 billion, demonstrates the growing financial strength of Ghana’s gold resources. The policy prioritizes utilizing gold to accumulate reserves without relying heavily on external borrowing or short-term financing, aiming to diversify Ghana’s revenue streams. Under GANRAP, the government has established a weekly gold purchase target of approximately 3.02 tonnes, with anticipated annual gross receipts of roughly US$25 billion, with a significant portion derived from the artisanal and small-scale mining sector through the Ghana Gold Board. The government expects the gold-based strategy to generate an average of approximately US$9.5 billion in net reserves annually. Dr. Forson emphasized the significance of the agreement, stating that it represents a commitment to strengthening Ghana’s financial resilience and providing a buffer to withstand economic shocks. He further highlighted that the initiative will enable Ghana to leverage its gold resources to accumulate reserves without excessive reliance on external sources, contributing to the nation’s economic development. The agreement includes measures to formalize and expand gold production, increase non-traditional exports, improve cocoa productivity, develop new oil fields, and reduce foreign exchange leakage, particularly within the energy sector. The government anticipates that the gold-based strategy will provide Ghana with a stronger financial foundation, enhancing its economic stability and promoting sustainable growth. The implementation of this strategy is expected to have a significant impact on Ghana’s economic trajectory, with the government aiming to solidify its position as a significant gold producer in the region. Stakeholders have shown support for this initiative, and the Bank of Ghana’s Gold Coin costs are expected to remain relatively stable, although some experts warn of potential risks to the Tarkwa Mine as Ghana considers local firms to replace the South African-based Gold Fields. A report indicates that after 33 years, South Africa’s Gold Fields faces risks of losing its top gold producer title to Côte d’Ivoire, with an expert warning that this could significantly impact Ghana’s economic prosperity. The government is committed to ensuring that the gold-based strategy contributes significantly to Ghana’s economic growth and stability.
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