Ghana Suspends Gold-for-Oil Programme Amid Operational Challenges
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has officially announced the suspension of Ghana’s Gold-for-Oil (G4O) programme due to policy and operational difficulties. This initiative, launched in December 2022, was designed to utilize the country’s gold reserves to purchase petroleum products, reducing dependence on foreign currency for fuel imports and stabilizing domestic fuel prices. However, in a recent interview with Bloomberg, Dr. Asiama disclosed that the programme had encountered financial setbacks, making it unsustainable in its current form. Despite this, he remains optimistic about the Ghanaian cedi’s stability and has reaffirmed the central bank’s commitment to maintaining sound monetary policies.
Prior to the suspension, the G4O programme had faced criticism from various stakeholders, including Energy Minister John Jinapor, who questioned its transparency and effectiveness. Jinapor had already indicated that the current administration intended to discontinue the initiative, citing the need for a more accountable and efficient system. Furthermore, the Chamber of Oil Marketing Companies (COMAC) released a report highlighting the programme’s shortcomings, noting that it covered only about 30% of Ghana’s petroleum needs and failed to prevent currency depreciation or provide lasting relief from high fuel prices. The lack of publicly available financial records and procurement data also raised concerns about transparency in the programme’s operations.
The decision to halt the Gold-for-Oil programme signals a broader reassessment of Ghana’s economic policies. Authorities are now exploring alternative strategies to ensure fuel price stability and long-term economic resilience. With mounting scrutiny over the efficiency and sustainability of such programmes, the government may need to introduce more transparent and structured mechanisms for managing fuel imports. As Ghana navigates these economic adjustments, policymakers will likely focus on fiscal discipline, enhanced accountability, and pragmatic solutions to address the country’s financial challenges.
