Bawumia Criticizes Bank of Ghana's Gold Trading Program

Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has criticized the Bank of Ghana's gold reserve program, claiming that the decision to trade in gold has resulted in losses of $1.7 billion. He argued that the losses could have been avoided if the central bank had adopted the reserve accumulation approach proposed by the previous NPP administration. Dr. Bawumia made these comments during a meeting with the Ghanaian community in Japan, where he is on an official visit.

According to Dr. Bawumia, the financial implications of the program are only beginning to emerge, and he has urged Ghanaians to exercise patience as developments unfold. He stated that if the central bank had followed the proposed approach, the losses would not have been made. However, he did not provide a breakdown of the $1.7 billion figure or explain the methodology used to arrive at the claimed losses. This is likely to reignite debate over the Bank of Ghana's gold purchasing and reserve management strategy.

Beyond his criticism of the gold program, Dr. Bawumia defended the previous NPP government's emphasis on digitalization, arguing that technology has become central to economic growth. He insisted that digital transformation is not separate from economic development but an important means of achieving it. Dr. Bawumia cited the introduction of mobile money interoperability as one of the major achievements of the previous administration's digitalization agenda.

Dr. Bawumia noted that annual mobile money transactions in Ghana stood at GH¢76 billion before the introduction of interoperability, but increased to GH¢4.5 trillion last year. He argued that the significant increase demonstrated how digital infrastructure could expand economic activity, facilitate payments, and improve financial transactions. This, he said, shows the importance of embracing digitalization in the global economy.

Dr. Bawumia also pointed to the digitalization of the Electricity Company of Ghana (ECG) as another example of how technology could improve public sector revenue mobilization. He recalled that ECG was collecting approximately GH¢450 million monthly when the previous administration decided to introduce digital payment systems and discourage cash transactions. The initiative has contributed to an increase in the company's monthly collections to approximately GH¢2 billion.

The NPP flagbearer maintained that digitalization should be understood as an economic development strategy rather than merely the introduction of technology into public institutions. He cited the Ghana Card and its contribution to revenue mobilization by the Ghana Revenue Authority (GRA) as another illustration of the economic benefits of digital infrastructure. Dr. Bawumia's official visit to Japan was primarily focused on a technological study tour to explore how advanced scientific research and innovation could be applied to address Ghana's developmental and environmental challenges.

Dr. Bawumia's engagement with the Ghanaian community provided an opportunity to discuss economic management, digital transformation, and the country's development priorities. His comments on the gold program and digitalization are likely to generate further debate and discussion in Ghana. The visit and discussions are part of efforts to explore solutions to Ghana's development challenges and promote economic growth.

Key points

• Dr. Bawumia blames gold trading for $1.7bn losses.
• He defends the NPP government's emphasis on digitalization.
• Digitalization is seen as central to economic growth and development.