Akufo-Addo/Bawumia Borrowed $21.7Bn for Reserves At $3.4Bn Interest Between 2017 – 2024
Finance Minister, Dr. Cassiel Ato Forson has revealed that the previous administration of Nana Akufo-Addo and Mahamudu Bawumia borrowed $21.7 billion between 2017 and 2024 to support reserve accumulation.
According to the Minister, the borrowing came at an interest cost of $3.4 billion, in addition to GH¢7.3 billion [Franklin Templeton interest payment] obligations.
Dr. Forson made the disclosure while addressing Parliament on Wednesday, February 25.
He contrasted the previous administration’s approach with that of the current government under President John Mahama, stating that in 2025 alone, the Ghana Gold Board generated $10 billion — without borrowing — to support reserve build-up at a cost of $214 million.
The Minister also unveiled a new policy framework, the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), aimed at building a financial buffer equivalent to 15 months of import cover by the end of 2028.
Presenting the policy to Parliament, Dr. Forson described GANRAP as a strategic shift away from what he termed the “unsustainable” practice of borrowing to build reserves. Instead, the government intends to leverage the country’s gold resources to strengthen its external position.
Under the policy, the government targets adding an average of $9.5 billion annually to gross international reserves. This will be funded through the purchase of approximately 3.02 tonnes of gold per week.
The plan involves the Ghana Gold Board acquiring gold from the small-scale mining sector and invoking the state’s pre-emptive right to purchase 20 per cent of output from large-scale mining companies.
“This is to build an economic war chest to withstand global economic shocks, secure macroeconomic stability and sustain the economic gains made,” Dr. Forson told Parliament.
He argued that the previous model, which relied heavily on expensive swaps and Eurobond issuances, had cost the nation billions in interest payments and was no longer sustainable.
The policy projects an increase in reserve cover from the current 5.7 months to 8.6 months by the end of 2026, 11.8 months by 2027, and ultimately to 15 months by 2028.
