IMF Praises Ghana's Domestic Gold Purchase Programme as Key Driver of Economic Recovery

Key Takeaways

• The IMF's Ghana Selected Issues Paper highlights the Domestic Gold Purchase Programme (DGPP) as a crucial factor in the country's economic recovery in 2025.
• The programme formalized Ghana's artisanal and small-scale mining sector, reducing gold smuggling and increasing foreign exchange earnings.
• The IMF estimates that the programme exported approximately US$10.9 billion worth of artisanal gold in 2025, significantly strengthening Ghana's external sector.

The International Monetary Fund (IMF) has commended Ghana's Domestic Gold Purchase Programme (DGPP) for its significant contributions to the country's economic recovery in 2025. The programme, introduced during a period of severe economic challenges, aimed to formalize Ghana's artisanal and small-scale mining sector and reduce gold smuggling.

The IMF's Ghana Selected Issues Paper, released in July 2026, provides a detailed analysis of the programme's impact on Ghana's economy. The report highlights the programme's success in transforming gold into Ghana's largest export, accounting for more than half of the country's total exports compared to about one-fifth in 2021.

Background & Context

Ghana's economic challenges in 2024 were characterized by severe exchange rate pressures, declining international reserves, and limited access to external financing. In response, the government introduced the Domestic Gold Purchase Programme, which aimed to formalize Ghana's artisanal and small-scale mining sector and reduce gold smuggling.

The programme's success can be attributed to the establishment of GoldBod, a platform that enabled artisanal miners to sell their gold to the Bank of Ghana at a fixed price. This initiative helped to bring a substantial portion of the country's gold trade into the formal economy, reducing the risk of smuggling and increasing foreign exchange earnings.

Key Findings

The IMF's analysis of the programme reveals several key findings. Firstly, the programme led to a significant increase in foreign exchange inflows, with gold-related foreign exchange inflows increasing from approximately US$1.7 billion in 2023 to about US$12.7 billion in 2025.

Secondly, the programme was instrumental in rebuilding Ghana's international reserves, with the country's gross international reserves increasing to approximately US$11.9 billion by the end of 2025. This represents a significant outperformance of the reserve targets agreed under the IMF-supported programme.

Finally, the programme improved liquidity within the foreign exchange market, enabling the Bank of Ghana to supply substantially more foreign currency to the banking sector. Foreign exchange sales increased from about US$1 billion in 2023 to approximately US$10.6 billion in 2025.

Broader Implications

The success of the Domestic Gold Purchase Programme has significant implications for Ghana's economy. Firstly, it has contributed to the country's remarkable macroeconomic stabilisation, with the programme associated with stronger reserve accumulation, improved foreign exchange liquidity, exchange rate appreciation, and enhanced debt sustainability.

Secondly, the programme has helped to formalize Ghana's artisanal and small-scale mining sector, reducing the risk of smuggling and increasing foreign exchange earnings. This has improved the country's ability to finance imports, meet foreign obligations, and support overall economic stability.

Looking Ahead

The success of the Domestic Gold Purchase Programme provides a positive outlook for Ghana's economy. The programme's impact on the country's external sector, foreign exchange earnings, and international reserves is expected to continue in the short to medium term.

However, the programme's success also highlights the need for continued reform and improvement in Ghana's economic management. The government must continue to work with the IMF and other development partners to strengthen the country's macroeconomic framework and ensure the sustainability of the programme's gains.