A latest report by Swissaid has revealed that Ghana is losing billions of dollars in revenue annually due to rampant smuggling from its booming artisanal gold mining sector, with much of the illicit bullion ending up in the United Arab Emirates (UAE).

The report, released on June 11, 2025, uncovered a massive 229-metric ton trade gap valued at $11.4 billion between Ghana’s declared gold exports and the corresponding imports recorded by trading partners over a five-year period.

A significant portion of the undeclared gold was traced to Dubai, where it is believed to be entering informally via hand luggage and undeclared air cargo.

The head of the Sahel Programme at Germany's Konrad Adenauer Foundation, who studies artisanal mining and regional insurgencies, said, “This is just the tip of the iceberg. Hand-carried gold does not have to be declared in Dubai. Informal gold is mostly brought in on flights.”

The report also detailed how smuggled gold often transits through Togo, Burkina Faso, and Mali, taking advantage of porous borders before reaching the UAE.

A senior official from Ghana’s Minerals Commission acknowledged the issue, describing the findings as a “notorious fact.”

Despite repeated concerns over revenue losses, Ghana’s Ministry of Finance did not respond to requests for comment.

The report also highlighted the unintended consequences of a 3 percent withholding tax introduced by Ghana in 2019 to formalise and regulate artisanal gold exports.

Rather than improving transparency, the measure caused a collapse in declared exports and a sharp rise in smuggling.

In 2022, the government reduced the tax to 1.5 percent, prompting a modest recovery.

However, in March 2024, the tax was entirely scrapped, a move by the then Finance Minister [Dr. Mohammed Amin Adam] credited for a surge in official artisanal gold exports this year.

According to the report, an estimated 34 metric tons of Ghana’s 2023 gold output went undeclared, roughly equivalent to the total amount of officially recorded artisanal production.

SP/MA

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