Gold price surge boosts Ghana’s export earnings
By Praisebell Rosemond Larbi
Gold prices soared to an unprecedented USD3,710 per ounce on Monday, fuelled by strong safe-haven demand and growing expectations of further interest rate cuts by the United States Federal Reserve.
Investors are closely watching upcoming US inflation data and remarks from Fed officials for more clues on the central bank’s next moves.
The rally comes just days after the Fed implemented its first rate cut of the year, signalling the possibility of additional reductions in both October and December.
Expectations of continued monetary easing have been a key driver of gold’s over 40 per cent gain in 2025, alongside persistent geopolitical tensions, trade concerns, robust central bank purchases, and steady inflows into gold-backed exchange-traded funds (ETFs).
For Ghana, Africa’s second-largest gold producer, the timing could not be more advantageous. The country’s gold exports surged to US11.2 billion in August, rising sharply from USD10 billion in July and USD8.4 billion in June.
This strong performance lifted total exports to USD17.99 billion and delivered a trade surplus of USD6.19 billion, equivalent to 7.1 per cent of GDP.
Analysts believe these gains could help stabilise the cedi and significantly bolster government revenues, though miners continue to grapple with rising energy, equipment, and labour costs.
The government has moved quickly to capitalise on the boom. The Ghana Gold Board (GoldBod) has streamlined its gold-purchase programme from small-scale miners and signed agreements with nine mining companies to acquire 20 per cent of their output.
Simultaneously, the Bank of Ghana boosted its gold reserves to a record 36.02 tonnes in August, more than quadruple the level recorded in May 2023. These efforts aim to build a stronger buffer for the national currency and support macroeconomic stability.
Authorities are also intensifying the fight against illegal mining, known locally as ‘galamsey’. This activity has long caused severe environmental damage and deprived the state of vital revenue.
A dedicated national task force is now working to curb smuggling and reclaim billions of dollars lost annually through illicit trade.
Despite these challenges, the nation appears poised to benefit from record global gold prices. Higher export earnings are expected to reinforce foreign reserves, provide much-needed fiscal space, and support infrastructure and social programmes.
