Ghana Sits On $1.5 Trillion In Gold -CPS

Ghana, despite being one of the world’s leading gold producers, remains in a state of structural liquidity constraint, according to Professor Yegandi Imhotep Paul Alagidede, Professor of Finance, and Bank of Ghana Chair in Finance and Economics at the University of Ghana.

Prof. Alagidede challenged conventional economic thinking, arguing that Ghana’s apparent dependence on foreign financing stems from outdated accounting and monetary frameworks rather than a true scarcity of resources.

He told attendees at a public lecture in Accra yesterday that Ghana is at a pivotal moment in its economic development, a point he described as the “age of regeneration.”

He highlighted the paradox of Ghana’s wealth, noting that while the nation is rich in gold and other natural resources, the country remains “liquidity-trapped,” repeatedly forced to seek external financial support.

“Ghana is a rich house with a locked door. We have been begging for bread outside while sitting on enormous wealth beneath our feet,” he said.

He explained that orthodox economic frameworks, which focus on measurable market flows, undervalue the nation’s true wealth.

In particular, the country’s gross domestic product, currently estimated at about $82 billion, ignores the value of unpaid work, informal economic activity, indigenous knowledge systems and natural resources such as gold.

Using an asset-based approach, Prof. Alagidede argued that the Ghanaian economy could be up to twenty-one times larger than official records suggest.

He emphasised that the nation’s gold reserves, both extracted and underground, offer an enormous opportunity to expand domestic liquidity without triggering inflation.

Ghana currently holds about 38 tonnes of gold in official reserves, but reserves are estimated at around 1,000 metric tonnes, conservatively valued at $146 billion, with the broader potential value of all natural resources, including metals and oil, exceeding $1.5 trillion.

According to Prof. Alagidede, activating just 40 to 60 percent of these in-situ resources could release between $634 billion and $952 billion in fiscal space, enough to fund several years of national budgets without recourse to external borrowing.

“Credit rating agencies see only the $60 billion in liquid reserves and ignore the $1.5 trillion under our feet,” he said, adding “That is why we appear poor on paper.”

The public lecture, which brought together academics, policymakers, civil society actors, and students, was organized by the Centre for Policy and Scrutiny (CPS) at Kokomlemle, Accra, under the theme – “Rich in Gold, Poor in Liquidity: Omnidox and the Reconstruction of Ghana’s Monetary Architecture.”

The forum provided a platform for Prof. Alagidede to introduce the Omnidox School of Metanomics, a framework integrating orthodox, heterodox and indigenous economic principles.

He explained that this approach accounts for assets and social capital that traditional GDP metrics often overlook, including household production, informal labor and indigenous knowledge systems.

Prof. Alagidede also highlighted the role of gold as a strategic monetary asset. Instead of exporting gold for foreign currency, he suggested that domestic reserves could be mobilised to support the national currency, finance public investment and strengthen the economy from within.

Citing the success of Ghana’s Domestic Gold Purchase Programme, which raised reserves from 8 tonnes in 2021 to 38 tonnes in 2025, he argued that policy reforms could further harness the country’s natural wealth for economic stability.

Dr. Adu Owusu Sarkodie, Executive Director of CPS, emphasised that the forum was designed to bring together stakeholders to explore practical solutions to Ghana’s development challenges. He noted that Ghana’s macroeconomic vulnerabilities are structural rather than due to scarcity.

According to him, gold production alone accounted for an estimated 5.1 million ounces in 2025, valued at $18.3 billion (GH¢234 billion), exceeding government revenue and grants for the year. Gold represents 65 percent of Ghana’s total exports, yet the nation continues to operate below its full fiscal potential.

CPS, Dr. Sarkodie said, seeks to advance Ghana-centric frameworks for policy and economic management.

“The Omnidox framework provides a new lens for analyzing our economy, focusing on domestic asset stocks, balance sheets, and sovereign wealth activation rather than simply chasing liquidity externally,” he said.

CPS: Shaping Policy Discourse Around Ghana’s Wealth

The lecture underscored the emerging role of CPS in driving evidence-based policy conversations in Ghana.

Since its inception five months ago, CPS has conducted in-depth reviews on national and international issues, including Ghana’s 24-hour economy, the 2026 budget statement and counter-terrorism strategies in the Middle East and Africa.

These studies have informed public debates and policymaker engagement, positioning CPS as a bridge between academic research and actionable policy.

The post Ghana Sits On $1.5 Trillion In Gold -CPS appeared first on The Ghanaian Chronicle.

Read Full Story