The Gold for Oil (G4O) policy has since its implementation about a year ago, made a significant impact in Ghana’s crude oil consumption.
The Minister for Lands and Natural Resources, Samuel Abu Jinapor, said over 800,000 metric tonnes of Gasoline and Gasoil, representing almost 30% of Ghana’s total crude oil consumption, was purchased through the innovative policy.
He further said the move to purchase crude oil without dollars turned round the fortunes of the cedi, and has been a major contributor to propping the economy.
Contributing to the debate on the Budget Statement in Parliament on Thursday, November 23, 2023, Mr Jinapor said the policy shows the leadership skills of the President and the Vice President, which are defined by choices they make in times of adversity.
“In times of crisis, what is required is leadership as it relates to choices, and the President and the Vice President made bold choices that have impacted our economy,” the Minister said.
According to him, until the G4O programme was introduced, the Bank of Ghana’s reserves were insignificant, but the implementation of the programme alongside the Domestic Gold Purchase policy, has shored up the Bank’s reserves.
Mr Jinapor said the government, through the Ministry of Lands and Natural Resources is working to scale up gold production to support the programme.
Mining and economy
Touching on the mining sector’s contribution to the economy, the Minister said the sector contributes almost 9% of Gross Domestic Product (GDP).
Out of that, gold alone contributed some $4.67 billion in exports as of August 2023, representing 43.4% of total exports this year.
He said the government is working on new mines, including large-scale mining companies in the northern part of the country, and the expansion of existing ones, to boost production.
Development of mining communities
The Minster added that he government is working with the mining companies to contribute to the development of mining areas, including the construction of an airport at Bolgatanga.
He hailed the mining lease granted for the exploitation of lithium, which provides for value addition, increased royalties and local participation, saying it is one of the best in the world.
Mr Jinapor said the government is also investing in the exploration of other green minerals like graphite, manganese and bauxite to support the green energy transition.
The Minister said these and several other measures being implemented by the government will contribute to achieving the One Trillion economy targeted.