Mahama pledges to investigate the gold-for-oil policy if elected president
John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has promised to investigate the government’s gold-for-oil policy if elected president.
He argues that the arrangement lacks transparency and needs thorough scrutiny.
The government introduced the gold-for-oil deal in 2021 to counter cedi depreciation and rising fuel prices. Speaking at the 3rd Annual Transformational Dialogue on Small-scale Mining at the University of Energy and Natural Resources (UENR) in Sunyani, Mahama stated, “We will investigate the opaque gold for oil programme and expose the actors benefiting from this so-called barter agreement.”
“Reports reaching me suggest that a new debt burden is being created because Ghana has not been able to keep up with its delivery of gold under the programme.”
Vice President Mahamudu Bawumia announced the policy in 2022 to address Ghana’s dwindling foreign currency reserves and the demand for dollars by oil importers, which has weakened the cedi and increased living costs.
Under the G4O program, Ghana aims to secure competitively priced oil by selling gold to ease pressure on the cedi, reduce fuel prices, and fix balance of payment issues.
By March 2023, over 60,000 ounces of gold valued at over $97 million had been purchased from local mines. The PMMC targets at least 160,000 ounces of gold valued at around $300 million per month, which could help purchase about 50% of the country’s monthly oil demand.
