The government has announced an ambitious strategy to increase Ghana’s import cover to 15 months by 2028, placing gold at the heart of a new national reserve accumulation drive designed to protect the economy from future global shocks.

Presenting the Ghana Accelerated National Reserve Accumulation Policy, GANRAP 2026 to 2028, to Parliament on Wednesday, February 25, Finance Minister, Dr Cassiel Ato Forson, described the initiative as the country’s first comprehensive framework focused on building sustainable external reserves and ensuring long-term macroeconomic stability.

According to the minister, the policy signals a major shift from short-term, debt-driven reserve accumulation to a more structured, gold-backed and reform-led model. He said the plan builds on what he called a strong macroeconomic recovery in 2025 following the economic crisis of 2022 to 2023.

Stronger Economic Indicators

Dr Forson told lawmakers that real GDP growth averaged 6.1 percent in the first three quarters of 2025. Inflation declined sharply from 23.8 percent in 2024 to 5.4 percent, and further to 3.8 percent in January 2026.

The 91-day Treasury bill rate also dropped significantly from 27.7 percent at the end of 2024 to 6.4 percent in February 2026. Public debt reduced from 61.8 percent of GDP to 45.3 percent, while gross international reserves rose to 13.8 billion US dollars, representing 5.7 months of import cover, up from 4.0 months in 2024.

Despite these improvements, the minister cautioned that the traditional benchmark of three months of import cover is no longer sufficient in a volatile global environment shaped by commodity price swings, geopolitical tensions and climate-related disruptions.

Building an “Economic War Chest”

Under GANRAP, the government aims to increase reserves to 8.6 months of import cover by the end of 2026, 11.8 months by the end of 2027, and ultimately 15 months by 2028.

Dr Forson described the target as the creation of an “economic war chest” that would shield Ghana from commodity price shocks, global financing instability and external uncertainties.

At the centre of the strategy is a gold-backed reserve accumulation framework anchored on the Ghana Gold Board Act, 2025, Act 1140. The law mandates the Ghana Gold Board to generate foreign exchange and support gold reserve accumulation by the Bank of Ghana.

Government has set a weekly gold purchase target of about 3.02 tonnes. This includes acquiring at least 2.45 tonnes per week from the Artisanal Small-Scale Mining sector and invoking pre-emption rights to secure a minimum of 0.57 tonnes weekly from large-scale mining companies.

The gold purchased will be refined and added to Ghana’s physical reserves. Any sale of accumulated gold will require prior approval from both Cabinet and Parliament.

Moving Away from Costly Borrowing

The Finance Minister contrasted the new model with what he described as an expensive and unsustainable approach used between 2017 and 2024, when Ghana relied heavily on Eurobonds, swaps, sale-and-buy-back transactions and commercial bank borrowing to boost reserves.

Between 2022 and 2024 alone, the Bank of Ghana reportedly accumulated 5.65 billion US dollars in reserves through swaps and related transactions at a cost of 1.16 billion US dollars in interest. Additionally, Eurobond borrowings between 2018 and 2021 used to support reserve build-up cost taxpayers about 2.5 billion US dollars in interest payments, with the debts still being serviced.

Dr Forson stressed that borrowing to build reserves contributed to the country’s debt distress in 2022 and was not sustainable.

In contrast, he revealed that in 2025 the Ghana Gold Board generated approximately 10 billion US dollars in foreign exchange at a cost of 214 million US dollars, significantly lower than the cost associated with borrowing.

Stronger Oversight

The policy also strengthens parliamentary oversight. Sales of accumulated gold reserves will require approval from Parliament, a measure government says is designed to prevent politically motivated withdrawals and protect long-term economic stability.

With GANRAP, government is betting on gold as a strategic buffer to reinforce Ghana’s financial resilience and reduce reliance on costly external borrowing in the years ahead.

Ghana’s cocoa sector has returned to the spotlight following reports that the Ghana Cocoa Board, COCOBOD, is struggling to settle payments owed to some farmers. The situation has intensified public debate, particularly after the announcement of a reduction in farm gate prices.

Although the Minister for Finance, Dr Casiel Ato Forson, outlined a series of interventions aimed at stabilising the cocoa industry amid looming challenges, the proposed price cut has dominated discussions across farming communities and in the media.

Supporters of the measure argue that the government’s decision is driven by prevailing global market realities. International cocoa prices have declined, making Ghana’s produce relatively expensive compared to other major producers. Adjusting domestic prices, they contend, is necessary to maintain competitiveness, avoid stock accumulation, and sustain export volumes.

There is also the argument that aligning local prices with global benchmarks will help secure the long-term viability of the sector. By responding to market forces rather than sustaining high subsidies, the government aims to protect jobs, stabilise the economy, and prevent potential financial losses.

However, while these economic justifications may appear sound, critics warn that the reduction in farm gate prices could have far-reaching implications beyond the immediate income losses to farmers.

One major concern is environmental sustainability. Lower earnings may push serious and production-oriented farmers to intensify cultivation in order to maintain their livelihoods. This could lead to increased use of agrochemicals, expansion into forest reserves and protected lands, and heightened bush burning activities. Though gradual, such practices could significantly undermine environmental protection efforts.

Even more troubling is the possible impact on Ghana’s mining landscape. Illegal and unsustainable mining, widely driven by the search for more lucrative alternatives, continues to pose a serious environmental threat. Cocoa farming has traditionally been regarded as one of the most rewarding agricultural ventures in many rural communities, including those that overlap with mining zones.

There is already intense competition for land between farming and mining activities. In recent years, this competition has increasingly favoured mining. Agricultural lands are being converted into mining sites at a faster pace than reclaimed mining lands are restored to farming use.

In some cases, farmers voluntarily sell fertile lands to miners, attracted by immediate financial returns. In others, land is relinquished under pressure or financial inducement. The result has been a steady loss of arable land, with miners often emerging as the dominant beneficiaries in the struggle over land resources.

Against this backdrop, the timing of the cocoa price reduction raises fresh concerns. As farmers grapple with declining incomes, the gold sector is experiencing strong global demand and rising prices. The renewed focus on gold production, including the establishment of GOLDBod, underscores the growing centrality of mining to Ghana’s economic strategy.

Government officials have repeatedly highlighted gold production and management as key pillars supporting currency stability, inflation control, and broader macroeconomic resilience. This heightened prominence of the gold sector could inadvertently make mining, including small-scale and illegal operations, even more attractive.

Given the government’s ongoing battle against illegal mining and its devastating environmental consequences, any policy shift that weakens alternative livelihoods such as cocoa farming may complicate enforcement efforts.

Observers are therefore calling for stronger coordination between COCOBOD and GOLDBod to ensure that policies in the cocoa and gold sectors are aligned. Without such synergy, there is a risk that gains made in sustainable mining practices and environmental protection could be reversed.

To mitigate potential fallout, stakeholders are urging the government to introduce targeted subsidies, special support packages, and extensive sensitisation campaigns to sustain farmers’ interest in cocoa production. Clear communication and livelihood enhancement measures, they argue, will be essential in preventing a shift toward illegal mining and safeguarding environmental sustainability.

As Ghana navigates economic pressures in both agriculture and mining, the balance between fiscal prudence and environmental responsibility will remain critical. The cocoa price decision may be economically defensible, but its broader implications demand careful and strategic management.