The International Monetary Fund (IMF) has cautioned that the rise in illegal and small‑scale mining activities, known locally as galamsey, poses a long‑term threat to Ghana’s economy.

In its latest report released Wednesday, August 5, 2026, the IMF said galamsey is destroying farmlands, forests, and water bodies, undermining agriculture and driving up the cost of water treatment.

Mining activities have reduced soil quality and polluted rivers used for drinking water, forcing the Ghana Water Company to spend more on purification.

The Fund warned that if the situation persists, Ghana could face lower cocoa production, increased floods and droughts, reduced hydropower generation, and slower economic growth.

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Separately, the IMF disclosed that about 229 tonnes of artisanal gold worth US$11.4 billion were smuggled out of Ghana between 2019 and 2024, creating gaps in official trade records.

These figures reflect the period before government reforms, including the removal of ASGM taxation in 2025 and the creation of the Ghana Gold Board (GoldBod), aimed at curbing illicit gold flows.

Looking ahead, the IMF said GoldBod plans to introduce responsible gold sourcing measures, stronger tracking systems, anti‑money laundering checks, and more transparent purchase processes to tackle the problem.

DR/SA