Ghana Rocked by $1.7 Billion Gold Trading Loss as Forensic Probe Demanded
Ghana faces a US$1.7 billion loss in its gold trading operations under the Domestic Gold Purchase Programme, as revealed by an IMF report. This has prompted the Africa Policy Lens (APL) to demand an urgent forensic investigation into the Ghana Gold Board (GOLDBOD), citing critical issues like information asymmetry, moral hazard, and GOLDBOD's concentrated powers as key contributors to the financial crisis.
Ghana is facing more than US$1.7 billion in losses under the Domestic Gold Purchase Programme (DGPP), according to an August 2026 International Monetary Fund (IMF) report, prompting the Africa Policy Lens (APL) to demand a comprehensive forensic investigation into the Ghana Gold Board (GOLDBOD).
APL’s analysis, using the Principal-Agent theory, points to information asymmetry, adverse selection and moral hazard in the relationship between the Bank of Ghana (BoG) and GOLDBOD.
The group argues that GOLDBOD’s control over gold purchasing, combined with its access to superior market information and other institutional advantages, created significant risks that ultimately contributed to the losses recorded by the BoG.
The IMF attributed almost all of the losses to purchases of gold doré, identifying GOLDBOD service and assay fees, discounts to off-takers and exporters, and foreign exchange spreads as major cost drivers.
DGPP costs and losses were estimated at about 17% of the total value of gold traded in 2025, with APL noting that foreign exchange spreads accounted for most of the losses while fees and discounts contributed about 1.758 percentage points.
APL has also questioned the projected reduction in DGPP costs from 14.5% in 2025 to 5% in 2026, demanding clarification over what would produce such a substantial improvement.
APL Demands Sweeping Reforms and Independent Oversight
APL is calling for a full review of GOLDBOD’s purchasing and pricing model, alongside audits of aggregators, commissions and premiums to determine whether the costs represent value for money.
The group also wants an independent oversight mechanism for pricing and volumes, publication of off-taker agreements, and a clearer separation between GOLDBOD’s regulatory responsibilities and commercial trading activities.
APL warned that failure to investigate the causes of the 2025 losses and reform the programme could expose Ghana to further significant financial risks, particularly as the government prepares to bear more of the costs associated with GOLDBOD’s operations.