The UK government has raised serious concerns about the rising levels of gold smuggling in Ghana, emphasizing its detrimental impact on the nation’s revenue generation.
With estimates suggesting that Ghana loses around $2 billion annually in tax revenue due to gold smuggling and illegal gold operations, the issue is becoming a critical challenge for the country’s economy.
In 2022 alone, approximately 60 tonnes of gold were smuggled out of Ghana, further compounding the financial losses the country faces. This trend, if left unchecked, could have severe consequences for Ghana’s economy, as the combination of unregulated mining and illegal small-scale mining, commonly referred to as galamsey, continues to threaten the nation’s financial and environmental well-being.
Chris Aston, team lead for the UK-Ghana Gold Programme (UKGGP), delivered a stern warning at a recent Civil Society Organization (CSO) meeting with political parties on mining reforms and governance. Aston called for immediate and decisive action from Ghanaian authorities, stressing that reversing the current situation is essential for securing the country’s economic future. He highlighted that illegal mining operations are being exploited by organized crime groups, with threats continuing to escalate.
“This is all lost revenue to the government of Ghana. At the moment, the sector is vulnerable. It is being exploited by organised crime groups. The threats are growing. The gold smuggling has more than doubled. We want to disrupt illegal mining and illicit financial inflows. Ghana loses more than US$2 billion yearly to gold smuggling,” Aston stated, underscoring the gravity of the situation.
The UK government’s concerns resonate with both national and international calls for reforms in Ghana’s mining sector. These reforms focus on curbing illegal activities, enhancing regulatory oversight, and ensuring that the country can benefit from its natural resources without being undermined by illicit operations. The UK-Ghana Gold Programme (UKGGP) is working closely with the Government of Ghana to ensure that artisanal small-scale gold mining is properly regulated. This collaboration seeks to enforce existing regulations and unlock the full potential of artisanal mining for the benefit of Ghanaians while also addressing critical environmental and health concerns associated with mining activities.
Illegal small-scale mining, or galamsey, has long been a contentious issue in Ghana, with devastating effects on both the economy and the environment. At the same CSO meeting, security analyst Prof. Emmanuel Kwesi Aning expressed his concerns about the failure of state actors to crack down on illegal mining. According to Prof. Aning, Ghana has descended into what he termed a ‘GalamState,’ a scenario where illegal mining activities have become so widespread that they have infiltrated various levels of society.
Prof. Aning described the situation as a convergence of crime, where mistrust in security agencies, coupled with weak law enforcement, has emboldened many to engage in galamsey with impunity. He warned that if the current state of affairs continues, Ghana could soon face the worst security, environmental, and economic consequences of destructive galamsey activities.
“Ghana has now been characterised as a ‘GalamState’. ‘GalamState’ is a state that is captured and linked to a higher force of grand corruption. In a ‘GalamState’, the practice is normalized and the people are silenced or limited to mere noises on the sidelines,” Prof. Aning remarked. He went on to describe how crime and collusion have become so deeply intertwined that addressing galamsey requires a comprehensive approach, involving multiple institutions and individuals who are complicit in the illegal activities.
For Ghana, the stakes are high. Not only does gold smuggling deprive the government of critical revenue, but the environmental degradation caused by unregulated mining has far-reaching consequences for the country’s agricultural sector, water bodies, and public health. Galamsey operations often involve the use of dangerous chemicals such as mercury, which contaminate rivers and other water sources, posing a significant risk to communities that rely on these resources.
The challenge for Ghanaian authorities now is to enforce stricter measures against illegal mining, improve transparency in the mining sector, and address the underlying issues of corruption that have allowed galamsey to thrive. Both local stakeholders and international partners, such as the UK, are pushing for these reforms to be implemented swiftly and effectively.
In the face of these challenges, the UK-Ghana Gold Programme (UKGGP) offers a framework for collaboration that can help turn the tide. By focusing on regulating artisanal mining, promoting sustainable practices, and ensuring that the benefits of gold extraction are felt across all levels of society, the programme represents a vital part of the solution.
The call for reforms is urgent, as gold smuggling continues to undermine the country’s economic progress. With proper governance and regulation, Ghana has the potential to regain control of its mining sector, prevent further revenue losses, and safeguard its future against the growing threats posed by illegal mining and smuggling operations.
As highlighted by both the UK and local experts, addressing these issues is not only about preserving Ghana’s natural resources but also about protecting its sovereignty and the well-being of its people.
