The Africa Center for Strategic Studies warns that Ghana's illegal small-scale gold mining, known locally as "galamsey," has evolved into a national security and governance threat. Small-scale miners generated about $11 billion last year, outpacing the roughly $9 billion from large-scale operations. The think tank calls for stronger financial intelligence, better border coordination and regional information sharing, while Accra moves to formalize artisanal mining through an agreement with the World Gold Council.
Ghana's 'Galamsey' Fuels National Security Risk — $11B Small-Scale Gold Trade Draws Warning
Ghana's illegal gold mining poses security risk
A Washington-based analysis warns that Ghana's expanding illegal small-scale gold mining sector — widely known locally as "galamsey" — has grown into a national security and governance problem that could leave the country vulnerable to organized crime and terrorist financing.
Scale and Scope: Last year, small-scale gold mining in Ghana generated an estimated $11 billion in revenue, surpassing the roughly $9 billion produced by large-scale mining operations. Much of that income is channelled through criminal networks and illicit financial routes and is often smuggled out of the country rather than reaching government coffers.
Security and Governance Concerns: The Africa Center for Strategic Studies says the illicit trade now extends beyond lost tax revenue: it undermines state capacity, weakens local governance, and increases the risk that criminal proceeds could be diverted to violent or extremist actors.
"What began as an economic and environmental problem has evolved into a security and governance challenge that requires stronger financial and cross-border controls," the think tank said.
Recommended Actions: The report urges Accra to strengthen financial intelligence, improve border coordination, and expand regional information-sharing mechanisms to disrupt smuggling and the illicit flow of funds. It recommends greater oversight and formalization of artisanal mining to bring activity into the regulated economy.
Policy Developments: This week Accra signed an agreement with the World Gold Council to promote formalization and improved oversight of the artisanal gold sector — a step aimed at reducing illicit flows and improving environmental and labor standards.
Why It Matters: Without coordinated financial controls and regional cooperation, the sizable revenues from illegal mining risk financing criminal networks and degrading public institutions. Formalizing artisanal mining could help recover lost revenue, reduce environmental harm, and limit opportunities for illicit actors to exploit the trade.
Analysis by Alexander Onukwue.
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