UK Government raises alarm over Gold smuggling in Ghana, calls for urgent reforms

The UK government has expressed serious concern about the rising rate of gold smuggling in Ghana, warning that the illegal activity is severely undermining the country’s revenue generation. It is estimated that Ghana loses around $2 billion annually in tax revenue due to gold smuggling and illegal mining operations.

In 2022 alone, nearly 60 tonnes of gold were reportedly smuggled out of the country, exacerbating financial losses. The UK has stressed that if these illegal practices, including unregulated small-scale mining (locally known as “galamsey”), continue unchecked, they will have devastating consequences for Ghana’s economy.

Speaking at a Civil Society Organization (CSO) meeting with political parties on mining reforms and governance, Chris Aston, team lead for the UK Ghana Gold Programme (UKGGP), urged Ghanaian authorities to take swift and decisive action to combat the issue. He emphasized that reversing this trend is critical for safeguarding the country’s economic future.

“This is all lost revenue to the government of Ghana. The sector is vulnerable, and it is being exploited by organized crime groups. Gold smuggling has more than doubled, and we want to disrupt illegal mining and illicit financial inflows,” Aston stated, noting the alarming $2 billion annual loss.

The UK-Ghana Gold Programme works in partnership with the Ghanaian government to ensure that artisanal small-scale gold mining is properly regulated, aiming to unlock the full potential of the sector for the benefit of Ghanaians while also preventing environmental degradation and protecting the health of miners.

At the same event, security analyst Prof. Emmanuel Kwesi Aning highlighted the depth of the crisis, describing Ghana as being in a state of “GalamState” due to the failure of state actors to clamp down on illegal mining activities. He warned that the country is on the brink of experiencing severe security, environmental, and economic consequences from galamsey.

Prof. Aning pointed out that “GalamState” reflects a system captured by grand corruption, where illegal mining is normalized, and citizens’ voices are silenced. He called for a broad-based approach to tackle the issue, saying, “To stop galamsey, we need to look at multiple institutions that enable these crimes and the embedded individual and group interests that perpetuate them.”