Ghana Loses $1.2 Billion in Gold Revenue Due to Illegal Smuggling in 2022, Minister Reveals

In 2022, Ghana lost an estimated $1.2 billion in gold revenue due to widespread illegal smuggling, according to Finance Minister Dr. Cassiel Ato Forson. The illicit trade, involving the outflow of 60 tonnes of gold, occurred during the country’s severe economic crisis, depriving the government of crucial foreign exchange and revenue. Dr. Forson emphasized the detrimental impact on the economy, highlighting the importance of tackling this issue to ensure the country fully benefits from its mineral wealth.

The Finance Minister discussed the government’s efforts to combat gold smuggling, which include collaboration with the UK-Ghana Gold Programme. This initiative aims to sever the connection between illegal artisanal mining and organized crime, a long-standing challenge for Ghana’s gold sector. Dr. Forson emphasized that addressing smuggling is key to unlocking the country’s full potential in gold exports and boosting economic stability.

A significant development in the fight against illegal gold trade is the establishment of the Ghana Gold Board (GoldBod), a regulatory body tasked with overseeing the sector. GoldBod will work alongside the Precious Minerals Marketing Company (PMMC) to improve gold pricing, support small-scale miners, and encourage reporting of smuggling activities. The government has also committed to purchasing 3 tonnes of gold weekly to enhance the country’s foreign exchange reserves.

In a move to incentivize legal transactions, the government plans to abolish the 1.5% withholding tax on unprocessed gold as part of the 2025 Budget. This policy shift is expected to make the legal gold market more attractive and stimulate economic growth. Dr. Forson assured that these efforts would help Ghana regain control over its gold industry, disrupt illegal operations, and contribute to national prosperity.

source: citi newsroom