Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has expressed concern over the country’s huge income losses owing to illegal gold smuggling. In 2022, over 60 tons of gold worth an estimated $1.2 billion were illegally exported from Ghana. This unlawful activity not only deprives the country of significant financial resources but also impedes economic growth and development.
Ghana is one of Africa’s leading gold producers, with the mining industry playing a critical part in the country’s economy. However, illegal mining operations and gold exports have become a major issue. Gold smuggling deprives Ghana of billions of dollars in potential revenue, stifling economic growth, lowering foreign exchange gains, and limiting funding available for national development programs like infrastructure, education, and healthcare.
If left unchecked, gold smuggling could continue to undermine Ghana’s economic stability. Addressing this issue requires political will, stronger enforcement mechanisms, and collaboration between stakeholders, including the government, mining companies, security agencies, and international partners.
Gold smuggling also adds to tax avoidance because unlawfully exported gold avoids established trade channels, resulting in the government missing out on taxes and royalties that could have been collected. This, in turn, reduces the country’s ability to fund critical economic and social services.
The UK government has also expressed concern, highlighting that Ghana loses around $2 billion annually in tax revenue due to gold smuggling and illegal mining operations. In response, initiatives like the UK-Ghana Gold Programme have been established to regulate artisanal small-scale gold mining and curb these illicit activities.
To address this issue, Dr. Forson stated that he had met with officials from the UK-Ghana Gold Programme, a collaboration aimed at breaking the link between illegal artisanal gold mining and organized crime.