Ghana suspends gold-for-oil programme

Ghana has made a significant move by suspending its Gold-for-Oil program, which was initiated in 2022. The decision was announced by the new Governor of the Bank of Ghana, Johnson Asiama, due to challenges faced by the policy leading to financial losses. Richmond Frimpong, Advisory Board Chair at FLF Africa, shared insights on the implications of this decision on Ghana's economic strategy. Frimpong highlighted that the suspension was a policy-driven decision, aligning with the government's new direction. He mentioned that a new Gold Board would likely perform similar functions to the Gold-for-Oil program with additional regulatory oversight. The appointment of Asiama represents a shift in monetary policy focus from the previous administration, indicative of a change in approach. Frimpong also emphasized that the government is focusing on reducing expenditure, revisiting tax policies, and enhancing revenue generation, particularly from the mining sector. The upcoming budget reading will provide more clarity on the government’s economic strategy. In terms of currency stabilization, the new administration plans to implement a hard monetary policy stance and focus on industrialization to boost Forex stability. This shift signifies a departure from relying on programs like Gold-for-Oil to stabilize the CD. Overall, Ghana is entering a new phase in its economic strategy, and stakeholders are eagerly observing the impact of these changes on the country's financial landscape.