Former Vice President says Ghana could have avoided reported losses if previous administration’s approach to gold reserve accumulation had been maintained
Former Vice President and New Patriotic Party (NPP) flagbearer, Dr Mahamudu Bawumia, has defended his economic management record, insisting that digitalisation remains a critical driver of economic growth and development in the modern global economy.
He has argued that countries that fail to embrace digital technologies and establish the necessary digital infrastructure risk being left behind, stressing that the global economy has increasingly become technology-driven.
Dr Bawumia made the remarks during a town hall meeting with members of the NPP community in Tokyo, Japan, where he addressed questions about Ghana’s economy, digital transformation and the financial implications of the country’s gold purchase programme.
Responding to concerns about whether he had avoided discussing economic issues in recent engagements, the former Vice President maintained that he had never shied away from conversations about the economy.
“I have never shied away from discussing the economy. What many people do not understand is that the global economy is now digital,” he said.
According to him, economic development in the contemporary world cannot be separated from digital infrastructure, adding that countries must invest in technology and digital systems to remain competitive.
A significant part of Dr Bawumia’s address focused on the reported US$1.7 billion losses incurred under the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) in 2025.
He argued that Ghana could have avoided the reported losses if the current administration had maintained the approach to gold reserve accumulation proposed by the previous government.
According to him, the decision to engage in gold trading, rather than concentrate on accumulating gold reserves under the earlier proposed framework, exposed the programme to financial losses.
“Through the gold programme, there have been losses of US$1.7 billion. If they had followed the way that we had wanted to do the Gold Reserve Programme in terms of accumulating reserves, those losses would not have been made,” he stated.
He added that trading in gold came with financial risks that could result in losses, urging Ghanaians to remain patient as the programme continued.
“But once you decide to start trading in gold, you will make those losses. And we are just at the beginning of things. I am asking everybody to be patient and let’s watch what we do,” he said.
The US$1.7 billion figure is consistent with an International Monetary Fund (IMF) assessment of the Bank of Ghana’s Domestic Gold Purchase Programme, which estimated losses exceeding US$1.7 billion in 2025, equivalent to approximately 1.5 per cent of Ghana’s Gross Domestic Product (GDP).
The IMF attributed the losses largely to the expansion of the programme, particularly gold-for-reserves transactions involving doré gold.
The Fund identified several factors contributing to the losses, including service and assay fees, discounts on gold sold to off-takers and exchange-rate differences.
However, the financial implications of the programme have generated differing interpretations from government officials and opposition politicians, with the Ghana Gold Board (GoldBod) maintaining that the reported losses should not be attributed directly to its institutional operations.
GoldBod has argued that the programme was primarily designed to mobilise foreign exchange and support economic stabilisation rather than generate trading profits.
Moving to the broader question of economic transformation, Dr Bawumia maintained that digitalisation should not be treated as a separate economic activity but as a fundamental component of modern economic development.
He explained that digital technologies have transformed how businesses operate, governments generate revenue and citizens access essential services.
He said the establishment of a digital economy framework is necessary to position Ghana to benefit from emerging opportunities in the global marketplace.
“If you don’t go digital, you cannot prosper in this global economy. That’s why we have a branch called the digital economy. If you don’t take your time and put your digital framework together, you will be left behind,” he said.
The former Vice President cited the Ghana Card, mobile money interoperability and the digitalisation of electricity payment systems as examples of initiatives he believes have demonstrated the economic benefits of digital transformation.
Dr Bawumia also highlighted the role of the Ghana Card in strengthening revenue mobilisation, particularly through the Ghana Revenue Authority (GRA).
He argued that the national identification system has helped improve the identification of individuals and the integration of data across public institutions, creating opportunities for more effective revenue administration.
“Today, because of the Ghana Card, we are making a lot of money at Ghana Revenue Authority,” he stated.
The Ghana Card, issued by the National Identification Authority (NIA), has become an important component of Ghana’s efforts to develop a unified identification system and support the integration of public and private sector services.
Dr Bawumia further cited the introduction of mobile money interoperability as one of the major achievements of Ghana’s digitalisation agenda.
He recalled that when the previous NPP administration assumed office, annual mobile money transactions stood at approximately GH¢76 billion.
According to him, the introduction of interoperability, which allows customers to transfer money across different mobile money networks and between mobile money wallets and bank accounts, significantly expanded the country’s digital payment ecosystem.
He claimed that mobile money transactions subsequently increased to GH¢4.5 trillion in 2025.
“When we came in and I said let’s digitalise the MoMo and make mobile money interoperability, at that time, MoMo transactions in Ghana annually were GH¢76 billion. Because of mobile money interoperability, last year, mobile transactions reached GH¢4.5 trillion,” he said.
He described the development as an indication that digitalisation could transform economic activities beyond simply introducing technology into existing systems.
According to him, the expansion of digital payment platforms has made financial transactions more accessible and convenient for individuals and businesses.
The NPP flagbearer also pointed to the digitalisation of the Electricity Company of Ghana (ECG) as another example of how technology could improve the performance of public institutions.
He recalled that ECG was collecting approximately GH¢450 million monthly before the introduction of the digital payment and revenue collection reforms he championed.
He said concerns about the consistency of the company’s monthly revenue figures prompted him to push for the digitalisation of its payment systems and the discontinuation of cash collections.
According to him, the reforms were intended to improve transparency, strengthen revenue monitoring and minimise potential revenue leakages.
“When I came, when I decided to digitalise ECG, ECG was collecting GH¢450 million a month. And if you look at the data from ECG, you could see that every month, they were reporting almost the same. I said something must be wrong. Let’s digitalise this,” he recounted.
He said the decision was subsequently taken to stop ECG from accepting cash payments and encourage customers to use digital platforms.
Dr Bawumia claimed that the company’s monthly revenue collection had since increased from GH¢450 million to approximately GH¢2 billion.
“Today, from GH¢450 million a month, today ECG is collecting GH¢2 billion a month. That is digitalisation,” he stated.
He further explained that the digital payment infrastructure had made it possible for Ghanaians living abroad to purchase electricity for their homes in Ghana without physically visiting ECG offices or relying on intermediaries.
Using his presence in Japan as an example, he said Ghanaians could purchase electricity remotely through the ECG Power App.
“You can sit in Japan and buy electricity for your home in Accra. Right here, you go to the ECG Power App,” he said.
Dr Bawumia concluded by urging Ghanaians to appreciate the growing importance of digitalisation and its potential to transform the country’s economy.
He maintained that the benefits of digital transformation extend beyond convenience, arguing that properly designed digital systems can improve public sector efficiency, expand economic opportunities and strengthen revenue mobilisation.
He encouraged people who do not fully understand the concept to seek further explanations rather than dismissing its importance.
“So if you don’t understand digitalisation, ask for an explanation,” he added.
His comments form part of his broader defence of the digitalisation policies pursued during the previous NPP administration and his arguments about the direction Ghana’s economy should take in the coming years.
By 1960news.com
