National Lottery Authority (NLA) has turned around its financial fortunes to continue on its profits trajectory.

The authority faced financial challenges in recent years, recording a loss of GH¢788,818 in 2020 and a more significant loss of GH¢17.1 million in 2021. 

However, NLA in the last couple of years, paid the debt in full and managed a turnaround in 2022, posting a profit of GH¢2.5 million and GH¢2.6 million last year. 

The recovery followed a Bank of Ghana (BoG) has bought 65.4 tonnes of gold, valued at US$5.07 billion since inception of the domestic gold purchase programme a couple of years ago.

Since January, of this year alone, the bank, for instance, has bought 23 tonnes of gold valued at about US$1.8 billion. 

“The programme is a development, which, along with other donor disbursements, puts the bank in a favourable position to support the country’s external payments obligations as and when they fall due,” the Governor of the bank, Dr Ernest Addison, said at the opening of the Royal Gold Ghana Limited (RGGL) in Accra.

“Under the DGPP, Bank of Ghana has accumulated sizable foreign exchange buffers, for the most part, significantly exceeding expectations under the IMF programme”, he said, adding that the company “will no doubt provide impetus to BoG’s successful Domestic Gold Purchase Programme (DGPP)”.

Gold is currently the leading export commodity with projected export earnings for 2024 estimated at close to US$10 billion.

Its value chain presents immense opportunities for job creation, increased foreign exchange earnings, and economic development. 

Even though Ghana has exported minerals, in particular Gold for over a century, its full potential on the local economy has yet to be fully realised. 

The exportation of raw materials without value addition results in potential loss of revenue and jobs.

Benefits

Dr Addison said the benefits of establishing a local gold refinery broadly aligned with BoG’s objective to build adequate foreign reserves to stabilise the economy during adverse domestic and external shocks and help achieve its core mandate of price stability, “and we are extremely pleased with the opening of the refinery”.

He said the opening of this gold refinery opened a new era to promote gold beneficiation and value addition, which would contribute to economic growth, poverty reduction, and ultimately, improvement in the livelihoods of Ghanaians.

“These are all based on the notion that value addition to Ghana’s gold resources holds the potential to increase foreign exchange earnings, improve the balance of payments position, and in turn, provide enough buffers against external vulnerabilities and shocks to the economy. 

“This refinery will also play an important role in reducing gold smuggling, which has been a major challenge for the country over the years. By providing a ready market for artisanal and small-scale miners, the gold refinery can mitigate the incentive for smuggling and help promote transparency and accountability in gold 
trading,” he added.

Accreditation

Dr Addison also noted that in the long run, when RGGL received London Bullion Market Association (LBMA) Good Delivery List accreditation, Ghana would gain additional benefits such as reduced dependence on foreign refineries.

“Also, the central bank can diversify and organically grow its foreign exchange reserves, as well as accumulate more refined gold reserves to reduce dependence on external borrowing,” he said.

The Governor further added that the presence of a local gold refinery would enable the production of gold coins and other artefacts, which could act as a safe-haven asset, and would broaden investment options in the financial markets and contribute to financial stability.