Ghana loses R200 BILLION to gold smuggling over last 5 years - report

Ghana is losing billions of dollars in revenue every year to smuggling from its artisanal gold mining sector, according to a report by development organisation Swissaid.

Most of the smuggled gold is believed to be ending up in the United Arab Emirates (UAE), particularly Dubai.

Between 2019 and 2023, this amounted to a loss to the fiscus of over R205 billion ($11.4 billion), the report reveals.

It says that Ghanaian gold is often smuggled to Togo before reaching Dubai, while some also passes through Burkina Faso into Mali.

One of the reasons for the rise in this trend is a 3% withholding tax on artisanal gold exports that the government introduced in 2019.

Africa business specialist Rutendo Hwindingwi explains that this led to a decline in declared exports and and resultant growth on the illegal side.

"The research showed that 229 metric tons of gold were unaccounted for when they looked at imports versus exports of gold during the five years."

Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory

"I think one of the key things that came out of this report is overcoming the loopholes that exist in the recipient countries... It will take more than just Ghana itself to resolve this issue."

Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory

Scroll up to the audio player to listen to Africa Business Focus (Ghana discussion at 4:54)