Ghana’s booming illegal gold mining sector poses a national security threat that risks opening the country up to terrorist activity, a new analysis warned.
Revenue generated by small-scale gold mining in Ghana topped $11 billion last year, compared to $9 billion for large-scale mining. Backed largely by criminal networks and illicit money channels, galamsey — as illegal gold mining is known in Ghana — has evolved beyond a challenge of lost tax revenue “into a security and governance problem,” the Africa Center for Strategic Studies warned.
The Washington-based think tank said Ghana must “strengthen financial intelligence, border coordination, and regional information-sharing mechanisms.” Much of the revenue from illegal gold mining operations is smuggled out of the country instead of reaching government coffers. This week, Accra signed an agreement with the World Gold Council to work towards increased formalization of the artisanal sector.