The UK government has raised serious concerns over the escalating problem of gold smuggling in Ghana, warning of the damaging impact on the country’s economy and revenue. 

Ghana, a top African gold producer, is estimated to lose around $2bn each year due to illegal mining activities and smuggling, reports Joy News.

In 2022, nearly 60 tonnes of gold were reportedly smuggled out of Ghana, further amplifying financial losses. The UK has warned that if the issue is not addressed, the combination of unregulated mining and illegal small-scale mining, known locally as “galamsey,” could have long-term detrimental effects on Ghana’s economic stability.

“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 $2bn yearly to gold smuggling,” said Chris Aston, team lead for the UK-Ghana Gold Programme (UKGGP), during a meeting with civil society organisations and political parties on mining reforms and governance.

The UK-Ghana Gold Programme works in collaboration with Ghanaian authorities to regulate artisanal mining, aiming to ensure that existing regulations are properly enforced. The UK government sees urgent action as critical to protecting Ghana’s future, both economically and environmentally. Aston stressed that reversing the trend of gold smuggling is essential to stabilizing the country's revenue flow and safeguarding the livelihoods of those involved in legal mining operations.

“This issue, if left unchecked, will continue to damage Ghana’s economy and environment. Strong enforcement is needed to address the growing illegal activities in the gold mining sector,” Aston is quoted as saying.

Ghana’s mining sector has come under increasing scrutiny, both domestically and internationally, as stakeholders call for reforms to curb illegal mining and tighten regulatory oversight.

At the same event, security analyst Emmanuel Kwesi Aning warned of the severe security and environmental consequences if the current trend continues. He stated that Ghana has effectively become a "GalamState," where illegal mining is normalised, and government efforts to combat the crisis have faltered.

Aning said that to dismantle illegal mining networks, multiple institutions need to be reformed, addressing the embedded corruption that allows galamsey to flourish.