The UK government has voiced serious concerns regarding the escalating rate of gold smuggling in Ghana, emphasizing its detrimental impact on the country’s revenue.
Estimates suggest that Ghana loses around $2 billion annually in tax revenue due to smuggling and illegal gold activities. In 2022, nearly 60 tonnes of gold were reportedly smuggled out of the country, worsening the financial strain.
Chris Aston, team lead for the UK Ghana Gold Programme (UKGGP), addressed a Civil Society Organization (CSO) meeting focused on mining reforms and governance, urging urgent action from Ghanaian authorities.
He warned that unregulated mining practices, particularly illegal small-scale mining known as galamsey, could have severe consequences for Ghana’s economy if left unchecked.
Aston stated, “This is all lost revenue for the government of Ghana. Currently, the sector is vulnerable and exploited by organized crime. The gold smuggling rate has more than doubled. We need to disrupt illegal mining and illicit financial flows. Ghana is losing over $2 billion yearly to gold smuggling.”
The UKGGP works alongside the Government of Ghana to ensure that artisanal small-scale gold mining is properly regulated, aiming to harness its potential while preventing environmental degradation and protecting miners’ health and well-being.
At the same meeting, security analyst Prof. Emmanuel Kwesi Aning described Ghana as entering a “GalamState,” a term he used to illustrate the normalization of illegal mining amid corruption and ineffective law enforcement. He highlighted the growing mistrust in security agencies, which has led to rampant illegality.
Prof. Aning warned of dire consequences, stating, “Ghana is characterized as a ‘GalamState,’ where practices are normalized and dissent is silenced. The intertwining of crime and collusion necessitates a broader examination of institutions that enable these activities.”
Both speakers underscored the urgent need for reforms in Ghana’s mining sector to combat the illegal practices threatening the nation’s economic future.
