IERPP Questions Ghana’s Celebration of $2.62 Billion FDI Amidst $1.7 Billion Loss in Domestic Gold Program

Accra: The Institute of Economic Research and Public Policy (IERPP) has welcomed Ghana's reported US$2.62 billion in Foreign Direct Investment (FDI), noting it as an encouraging sign that international investors recognize opportunities within the Ghanaian economy in 2025. According to Ghana Web, the institute urges caution in celebrating these FDI figures, pointing to significant financial losses in the Domestic Gold Purchase Program (DGPP). Prof. Isaac Boadi, Executive Director of IERPP, highlighted the importance of acknowledging Ghana's success in attracting foreign investment. However, he emphasized the necessity of addressing the substantial losses within the DGPP, which amount to an estimated GHS22 billion, equivalent to US$1.7 billion. The IERPP draws attention to the stark comparison between the US$2.62 billion FDI and the DGPP loss, which constitutes approximately 65% of the FDI inflow's value. Prof. Boadi noted that for every US$1 in FDI, the DGPP's reported loss equals around 65 cents, stressing the need to understand the relative magnitude of the losses. The institute clarified that the US$1.7 billion loss refers to the DGPP as a whole and is not solely attributable to GoldBod, a program component. The associated costs and fees of GoldBod are also highlighted for public scrutiny. Prof. Boadi questioned whether adequate attention is given to managing and protecting existing economic resources. While acknowledging the importance of foreign investment for economic transformation, he emphasized that it cannot replace prudent public resource management. The IERPP calls for increased transparency regarding DGPP losses, demanding a detailed breakdown of costs, revenues, and the fiscal impact, including the role of GoldBod. The institute urges accountability from institutions, Parliament, civil society, think tanks, and the media in scrutinizing economic figures. Prof. Boadi asserted the necessity of balanced enthusiasm towards Ghana's economic data, advocating for both celebration and critical inquiry. He stressed that genuine investor confidence arises not just from attracting capital but also through strong institutions and transparent financial management. Concluding, Prof. Boadi emphasized the need for both investment and accountability for sustainable economic transformation, stating that one without the other is insufficient for long-term progress.