Andrews University Professor Backs Gold Board But Warns Against “Next COCOBOD” Risk

An Associate Professor of Finance at Andrews University has endorsed Ghana’s Gold Board concept but cautioned that weak implementation and financing gaps could undermine its success.

Speaking on PM Express on Joy News, Prof. William Kwasi Peprah said the legal framework behind the Ghana Gold Board (GoldBod) is sound, but execution will determine whether it succeeds or struggles.

“To me, the law is good. The operationalisation is where we must watch it carefully,” he stated.

Call for a Gold Stabilisation Fund

Prof. Peprah identified a major gap in the Gold Board framework — the absence of a dedicated commodity stabilisation account for gold.

He noted that Ghana maintains stabilisation mechanisms for cocoa under Ghana Cocoa Board (COCOBOD) and for petroleum revenues, and argued that gold — as Ghana’s leading export commodity — deserves similar protection.

“If the Gold Board will work, we need another stabilisation account for the gold,” he said.

According to him, Ghana is currently benefitting from a gold price windfall driven by global uncertainty, inflation fears, and currency volatility.

Why Gold Prices Are Rising

Prof. Peprah explained that gold trading is influenced by three main drivers:

• Fear (global uncertainty)

• Inflation

• Currency movements

“We currently have fear… so many things happening in the world, which makes investors uncertain. So that is why we are seeing the gold price really, really moving up,” he said.

He added that the weakening of the US dollar has pushed investors toward gold as a hedge.

However, he warned against assuming prices will remain elevated.

“Now that we are having this windfall, we should be able to establish another stabilisation fund purposely for gold.”

Preparing for the Downturn

Prof. Peprah proposed that part of current gold sale revenues be channelled into a dedicated gold stabilisation fund to cushion the sector and the broader economy during price downturns.

“When the price starts to drop, we’ll be able to use it to support the gold industry in Ghana,” he explained.

While welcoming Ghana’s refinery ambitions to enhance value addition, he stressed that value addition alone cannot shield the economy from commodity price shocks.

Financing Concerns and COCOBOD Warning

The finance professor also raised concerns about GoldBod’s financing structure, noting that government funding commitments were not fully met in 2025 and that the Bank of Ghana is expected to exit gold trade financing.

He pointed to a provision allowing GoldBod to accept advance payments from buyers and supply gold later — a model he believes must be carefully examined.

“That model must be really looked at… so that Gold Board does not tend to the next COCOBOD.”

He emphasised that a revolving fund is fundamentally different from a stabilisation fund and warned that failing to build buffers could weaken Ghana’s trade balance if gold prices fall sharply.

“If we fail on gold… our trade balance will move into a very struggling position,” he cautioned.

The remarks come amid ongoing national debate over how Ghana should structure its gold governance to maximise long-term economic benefits while managing volatility risks.