The UK government has voiced significant concern regarding the escalating issue of gold smuggling in Ghana, emphasizing its detrimental effect on the country’s revenue generation.
It is estimated that, Ghana loses around $2 billion each year in tax revenue due to smuggling and illicit gold operations.
In 2022 alone, nearly 60 tonnes of gold were reportedly smuggled out of the nation, intensifying the financial impact.
The UK has warned that if unregulated mining practices and illegal small-scale mining, locally referred to as galamsey, are not addressed, they will continue to inflict severe damage on Ghana’s economy.
At a Civil Society Organization (CSO) meeting focused on mining reforms and governance, Chris Aston, the team lead for the UK Ghana Gold Programme (UKGGP), urged Ghanaian authorities to take urgent and decisive action against the issue.
He stressed the importance of reversing this trend to protect Ghana’s economic future.
The UK government’s concerns resonate with increasing national and international demands for reforms in Ghana’s mining sector, particularly aimed at reducing illegal activities and enhancing regulatory oversight.
“This represents lost revenue for the government of Ghana. Currently, the sector is at risk, exploited by organized crime groups. The threats are escalating, with gold smuggling more than doubling. Our goal is to disrupt illegal mining and the flow of illicit finances. Ghana is losing over $2 billion annually to gold smuggling,” Aston stated.
The UK-Ghana Gold Programme (UKGGP) works in partnership with the Government of Ghana to ensure proper regulation of artisanal small-scale gold mining and effective enforcement of existing laws.
The initiative aims to unlock the full potential of artisanal mining to benefit Ghanaians while preventing environmental harm and safeguarding the health and well-being of miners.
Source: Adomonline
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