Ghana is losing billions of dollars each year due to gold smuggling from its artisanal mining sector, with most of the gold ending up in the United Arab Emirates, according to a report released by nonprofit Swissaid on June 11.
The report found a trade gap of 229 metric tons between Ghana’s official gold exports and what importing countries, mainly the UAE, recorded over five years. This gap is worth an estimated $11.4 billion.
Most of the gold is smuggled through neighboring countries such as Togo and Burkina Faso before reaching Dubai.
Swissaid said some of the gold is carried by hand on flights, allowing it to enter Dubai without being declared.
In 2019, Ghana introduced a 3% withholding tax on artisanal gold exports. The policy led to a sharp drop in declared exports and a rise in smuggling.
The government reduced the tax to 1.5% in 2022, which helped increase formal exports. In March this year, the tax was removed entirely.
The finance minister credited this move for the recent rise in recorded artisanal exports.
Despite the reforms, about 34 tons of Ghana’s gold output in 2023 went undeclared, roughly equal to the country’s entire reported artisanal production that year.
Ghana earned $11.6 billion in gold export revenue in 2023 and has started efforts to centralize and regulate the gold trade. The report said many African gold-exporting countries report lower exports than what is received by countries like the UAE, where reforms to curb smuggling have had limited impact.
Informal gold mining supports more than 10 million people in sub-Saharan Africa. However, it also plays a role in funding organized crime and conflict. Local experts say Ghana’s new government is showing interest in fixing issues in the gold sector, but progress remains slow.
