Gold smuggling costs Ghana $2 billion each year, UK government warns

The UK government has raised serious concerns over the rising issue of gold smuggling in Ghana, highlighting its significant negative impact on the country’s revenue. Ghana is reportedly losing about $2 billion in tax revenue annually due to smuggling and illicit gold activities. In 2022 alone, nearly 60 tonnes of gold were smuggled out of the country, exacerbating the financial losses.

The UK has warned that if illegal mining practices, including unregulated small-scale mining known locally as galamsey, are not effectively addressed, the Ghanaian economy will continue to suffer. At a Civil Society Organization (CSO) meeting focused on mining sector reforms, Chris Aston, the team lead for the UK Ghana Gold Programme (UKGGP), called on Ghanaian authorities to take swift and decisive action to curb the issue.

Aston emphasized that halting illegal mining and gold smuggling is essential to securing Ghana’s economic future. “This situation represents lost revenue for the government of Ghana. The sector is currently being exploited by organized crime groups, with gold smuggling more than doubling. Ghana is losing over $2 billion annually to gold smuggling, and our aim is to disrupt illegal mining operations and the flow of illicit finances,” he said.

The UK-Ghana Gold Programme (UKGGP), which collaborates with the Ghanaian government, is working towards better regulation of artisanal and small-scale gold mining. The initiative seeks to ensure that the sector’s full potential benefits Ghanaians while minimizing environmental damage and protecting the health and well-being of miners. The UK government’s concerns echo growing calls for reform in Ghana’s mining sector, with a focus on reducing illegal activity and improving oversight.