Ghana has reportedly lost over $11 billion in just five years due to gold smuggling tied to its informal artisanal mining sector, according to a new report by Swiss nonprofit Swissaid. Much of the illegally traded gold is believed to end up in Dubai, raising concerns about regulatory loopholes and enforcement gaps.
The report highlighted a significant discrepancy of 229 metric tons between Ghana’s officially recorded gold exports and the amount received by trading partners. The United Arab Emirates, particularly Dubai, featured prominently in the findings as the main destination for the smuggled gold.
A large portion of the gold is smuggled out of Ghana through neighboring countries like Togo, Burkina Faso, and Mali, bypassing official channels. This is often done by hand-carrying gold on flights, which doesn’t require declaration at Dubai customs, making it easier to funnel the metal into the UAE market without proper documentation.
The findings were backed by experts like Ulf Laessing of Germany’s Konrad Adenauer Foundation, who studies artisanal mining in West Africa. He confirmed that informal trading networks operate freely, taking advantage of weak border controls and regulatory blind spots.
Officials in Ghana are aware of the issue. A senior figure at the Minerals Commission admitted that the situation is widely known. However, the Finance Ministry did not comment on the report when approached.
Swissaid also pointed to Ghana’s tax policy as a contributor to the problem. A 3% withholding tax introduced in 2019 led to a sharp drop in declared exports, as traders sought to avoid the tax by smuggling. Though the government reduced the rate to 1.5% in 2022 and later scrapped it entirely in March 2024, the damage had already been done.
The policy shift has helped formal exports rebound, but challenges remain. The report estimates that 34 tons of gold in 2023 went undeclared, almost the entire official output from Ghana’s artisanal mines for that year.
Despite earning $11.6 billion from gold exports in 2023, Ghana still faces issues with enforcement, regulation, and accountability. The government has rolled out reforms aimed at centralizing and cleaning up the sector, but critics say progress is too slow.
Bright Simons from Accra-based think tank Imani Center for Policy and Education acknowledged the government’s renewed efforts but criticized the sluggish pace. Meanwhile, a United Nations report warns that artisanal mining, though a source of income for over 10 million people across sub-Saharan Africa, is increasingly being exploited to fund organized crime and armed conflict.
By Yockshard Enyendi