The UK government has raised concerns about the rising levels of gold smuggling in Ghana, warning that the illegal activity is costing the nation approximately USD2 billion in annual tax revenue and severely undermining the country’s economy.

According to estimates, nearly 60 tonnes of gold were smuggled out of Ghana in 2022, compounding the financial loss and worsening the impact of illegal mining operations, known locally as galamsey.

The UK has stressed that without immediate intervention, unregulated mining practices will continue to wreak havoc on Ghana’s economic stability.

At a recent meeting with political parties and Civil Society Organisations (CSOs) focused on mining reforms, Chris Aston, the team lead for the UK-Ghana Gold Programme (UKGGP), called for decisive action from Ghanaian authorities.

“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 USD2 billion yearly to gold smuggling,” Mr. Aston warned.

The UKGGP, in collaboration with the Ghanaian government, seeks to regulate small-scale artisanal mining and ensure that current regulations are enforced to curb illegal activities, protect the environment, and safeguard the health of miners.

Security analyst Prof. Emmanuel Kwesi Aning, speaking at the same event, described Ghana’s deteriorating situation as a "GalamState," a term he coined to depict the state's inability to tackle illegal mining.

He pointed to widespread corruption and the normalisation of illegal practices, which, he warned, could lead to serious consequences.

“GalamState is a state that is captured and linked to a higher force of grand corruption.

In a GalamState, the practice is normalised, and the people are silenced or limited to mere noises on the sidelines,” Prof. Aning stated.

He cautioned that Ghana is on the brink of severe security, environmental, and economic crises if galamsey is not eradicated.

“The crimes and collusion are so intertwined. To stop galamsey, we need to look at multiple other institutions that make these crimes possible and where there are embedded individual and group interests,” Prof. Aning urged.