Ghana is losing billions of dollars in revenue annually to smuggling from its booming artisanal gold mining sector, with much of the gold flowing to the United Arab Emirates.
A report by nonprofit Swissaid found a staggering 229 metric ton trade gap, equivalent to $11.4 billion, between Ghana’s gold exports and corresponding imports over just five years, with most of the smuggled gold ending up in Dubai.
The gold is largely smuggled to Togo before ending up in Dubai, while some bullion passes through Burkina Faso into Mali, using porous borders.
A senior official at Ghana’s regulatory Minerals Commission described Swissaid’s findings as “a notorious fact”. The report noted that a 3% withholding tax on artisanal gold exports imposed in 2019 backfired dramatically, as declared exports collapsed while smuggling surged.
The government’s reduction of the tax to 1.5% in 2022 partially reversed the trend, with formal exports rebounding.
Ghana earned $11.6 billion in revenue from gold exports last year and has stepped up reforms to centralize and clean up the trade.
However, the country’s experience mirrors a continent-wide pattern where Africa’s gold-producing nations consistently report lower exports than what importing countries, particularly the UAE, declare as receipts.
To curb smuggling, Ghana plans to launch a Gold Board to streamline gold purchases from small-scale miners, increase earnings, and reduce smuggling.
