Ghana's Golden Dilemma: Smuggling Threatens Economy

Ghana is grappling with the loss of billions in revenue due to rampant gold smuggling from its thriving artisanal mining sector, with the majority of illegal transactions directed toward the United Arab Emirates, according to a report by Swissaid.

The report identified a substantial 229 metric ton trade gap equating to $11.4 billion over five years between Ghana's gold exports and the imports recorded by other nations, predominantly ending in Dubai. Ulf Laessing of the Konrad Adenauer Foundation underscored the gravity of these findings, suggesting even more undisclosed activity.

Smuggling routes often pass through Togo and Burkina Faso en route to Mali before reaching Dubai via informal methods, as per Swissaid. In response to the smuggling surge catalyzed by a 3% tax in 2019, Ghana reduced the tax to 1.5% in 2022, prompting a recovery in formal gold exports.

(With inputs from agencies.)