Galamsey poses long-term economic risk to Ghana – IMF

The International Monetary Fund (IMF) has warned that the continued expansion of illegal and small-scale mining activities, popularly known as galamsey, could have serious long-term consequences for Ghana’s economy.

In its latest report released on Wednesday, August 5, 2026, the Fund said illegal mining is causing widespread environmental damage through the destruction of forests, farmlands and water resources, with negative effects on key sectors of the economy.

The IMF noted that mining activities have contributed to declining soil quality and the contamination of rivers, many of which serve as sources of drinking water. It added that the pollution of water bodies has increased the cost of treatment for the Ghana Water Company Limited.

The Fund cautioned that a failure to address the problem could lead to reduced cocoa output, more frequent flooding and droughts, lower hydropower production and slower economic expansion.

The IMF also revealed that an estimated 229 tonnes of artisanal gold, valued at about US$11.4 billion, were illegally exported from Ghana between 2019 and 2024, resulting in significant gaps in official trade data.

It said the figures cover the period before recent government interventions, including the removal of the artisanal and small-scale mining (ASGM) tax regime in 2025 and the establishment of the Ghana Gold Board (GoldBod) to improve oversight of the gold sector.

Looking ahead, the IMF said GoldBod is expected to implement responsible gold sourcing policies, enhance gold tracking mechanisms, strengthen anti-money laundering measures and improve transparency in gold purchasing operations.

The Fund stressed that addressing illegal mining and improving governance within the sector will be critical to protecting Ghana’s natural resources and supporting sustainable economic growth.

Prince Antwi

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