Ghana is losing billions of dollars annually due to rampant gold smuggling from its artisanal mining sector, with a significant portion of the untracked gold making its way to the United Arab Emirates, a new report by Swissaid has revealed.

According to the nonprofit’s findings, there is a striking 229-metric-ton gap, worth about $11.4 billion, between Ghana’s officially declared gold exports and the import figures reported by destination countries over a five-year period.

The report identifies Dubai as the main destination for the gold that leaves Ghana through unofficial channels.

While Ghana is widely acknowledged as Africa’s leading gold exporter and has long benefited from the sector, challenges persist.

Illegal mining, known locally as galamsey, along with large-scale smuggling, continues to erode government revenues from the mineral.

Swissaid’s investigation highlights how a large portion of artisanal gold is smuggled through neighboring Togo before arriving in the UAE.

Other smuggling routes pass through countries like Burkina Faso and Mali, exploiting weak border controls.

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The report points to a tax policy introduced in 2019 as a key turning point.

A 3% withholding tax on artisanal gold exports, aimed at boosting revenue, had the opposite effect.

It triggered a steep drop in formal gold declarations, driving more activity underground.

Although the tax was later reduced to 1.5% in 2022, it only led to a slight recovery.

In March 2024, the tax was completely removed. The finance minister later attributed a rise in artisanal gold exports this year to policy reforms.

Despite that, Swissaid reported that around 34 metric tons of gold went undeclared in 2023 alone, nearly the same as the volume officially recorded as artisanal production that year. This pattern isn’t unique to Ghana.

The report notes similar discrepancies across other African gold-exporting countries, where export volumes recorded locally are often far below what importers, particularly the UAE, report receiving.

A 2019 Reuters investigation revealed a $3.9 billion mismatch between what 21 African nations said they exported and what the UAE claimed it had imported from them.

Between 2012 and 2022, the UAE is estimated to have imported 2,569 metric tons of undeclared gold from across Africa, valued at over $115.3 billion.

While Dubai has implemented some reforms to curb illicit gold trade, Swissaid says the impact so far has been limited.

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