By Amos SAFO
The latest report from the International Monetary Fund (IMF), released in July 2025, discusses favorable economic expansion in Ghana during the latter part of 2024 and the beginning of 2025, driven by robust activity in mining, farming, construction, and information technology industries. Notably, there has been a substantial rise in gold exports. However, the question remains: What price is Ghana paying for its gains through mining and selling gold?
Over many years, Ghana has faced significant environmental degradation, particularly affecting water bodies. Rivers such as the Ankobra, Pra, Densu, and others have been polluted because of the actions of unauthorized miners, who recklessly release mercury and other dangerous chemicals into these water sources.
Economic Growth
As per the report, Ghana’s economic expansion primarily resulted from robust performance within the mining industry. It is important to mention that the findings elicit varied reactions among Ghanaians. While the nation has achieved progress in exporting gold and generating foreign currency, simultaneously, our waterways have transformed into muddy areas, and our woodlands stand at risk of disappearing. Considering this situation, unlawful mining constitutes an ecological violation affecting both present and upcoming generations. Therefore, those involved in and supporting illicit mining activities must be regarded as lawbreakers.
Following the helicopter accident that resulted in the deaths of eight fellow citizens, the government faces intense criticism for not addressing illegal mining as pledged. Various interested parties are calling for strict laws and an implementation system aimed at prohibiting mining activities within forest areas and close to rivers and water sources.
Legal frameworks
On July 29, 2019, the Akufo-Addo administration initiated the Community Mining Scheme (CMS) to address the issue of unlawful mineral extraction. This initiative represents an organized method aimed at regulating local mining operations. As a result, the National Alternative Employment and Livelihood Program was introduced for communities that relied on illicit mining for their income.
CMS incorporates, among other elements, small-scale mining under the Minerals and Mining Act, 2006 (Act 703), along with the Tribute System according to Regulations 493–506 of the Minerals and Mining Regulations, 2012 (L.I. 2182). The functioning of CMS aligns with Sections 81–99 of the Minerals and Mining Act, 2006 (Act 703). Additionally, it is regulated by a code of conduct outlined in Regulations 475 and 515 of the Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182).
Firstly, the policy was designed to oversee the industry, stop ecological harm caused by mercury usage and soil erosion, and encourage environmentally friendly mining methods. This suggests that Ghana already possesses a regulatory system for managing the sector. The key issue remains the lack of sufficient political commitment to implement these laws effectively.
Methods for regulating unauthorized mineral extraction
- The process of legitimizing informal mining activities involves transforming them into recognized, small-scale, and locally managed mineral extraction efforts, thereby enabling more effective monitoring and control.
- Tighter Control Over Machinery: Updated regulations involve a licensing system for bringing in excavators to monitor their application in unauthorized activities and enhance oversight of large-scale mining machinery.
- Environmental Conservation: Measures are taken to limit the uncontrolled usage of mercury and hazardous liquids, which lead to significant water contamination and ecological damage.
- Alternate Income Sources: Acknowledging that unfavorable financial situations push numerous individuals towards illegal mining activities.
From my perspective, this complex measure implemented by the former administration should have been strengthened rather than abandoned. Hence, it wasn’t necessary for the present government to introduce a contrasting policy known as the “Responsible Cooperative Mining and Skills Development Programme (rCOMSDEP).” This latest effort seeks to encourage ethical and environmentally friendly approaches in Ghana’s informal and small-scale mining industry. Similar to the earlier approach, the current program intends to:
- Promote responsible mining practices,
- Supply workers with long-term abilities,
- Address unlawful mineral extraction and underage employment, and
- Offer assistance to those involved in mineral extraction industries.
Policy duplication
A thorough examination of the policies implemented by both the Akufo-Addo administration and the present John Mahama leadership shows little significant variation, with the latter essentially aiming to replicate initiatives already introduced.
The rapid pace at which new administrations repeal policies implemented by their predecessors poses a challenge to our economic development. Maybe, what President John Mahama should have done was assess the prior administration’s efforts aimed at improving conditions. In this regard, there is no necessity to replicate an already established initiative. Possibly, our eight fellow citizens might not have lost their lives in the helicopter accident as they were heading to introduce the opposing plan.
Challenges and ongoing efforts
Community Engagement: Both policies highlight the importance of involving local communities. While both methods are commendable, there is an absence of strong political commitment to implement rules prohibiting mining activities in forested areas and waterways. This failure to act arises because many, if not all, of our political figures are funding and profiting from unlawful mining operations.
Environment Pollution and Health Dangers: Galamsey causes widespread contamination of soil and water due to mercury and cyanide, resulting in serious health problems for impoverished local populations. The issue remains, should we permit some individuals to amass great wealth while endangering our shared future?
Corruption and insufficient enforcement: Previous methods, like strict law-enforcement operations, have not worked well because of corrupt practices and the strong control exerted by political leaders, resulting in a “arrest and let go” cycle. It may be that due to political pressure, courts frequently free unauthorized miners, particularly those from abroad who face charges related to mining activities in protected areas and water sources. Moreover, the mining industry continues to suffer from graft and external exploitation, with international companies and collaborating government officials regularly benefiting at the cost of locals and natural resources.
Challenges within the Artisanal Mining Industry: Certain environmental experts suggest that the high volume of unregulated participants and the intricacy of the gold trade impede the successful enforcement of current regulations. Ghana isn’t alone in facing these issues; nations such as Burkina Faso and Mali have managed to create and implement legislation aimed at improving transparency within this industry. The inability to properly oversee the sector arises due to conflicting interests and insufficient governmental direction.
Call for Structural Transformation: Some experts support an all-encompassing strategy for rural growth to tackle issues like poverty and joblessness along with policy measures, aiming for long-term solutions. I concur with this perspective since illicit mining represents a matter of social equity. Over many years, local populations residing near areas rich in gold have seen multinational corporations extract the precious metal and send substantial earnings overseas, leaving residents trapped in economic hardship. Hence, these communities’ aspiration to receive a just portion of the wealth from their land is understandable; nevertheless, the reckless damage inflicted upon the environment amounts to a serious offense against the nation.
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Is gold a curse or a gift?
Considering the ecological damage caused by gold mining, it is reasonable to say that gold brings both advantages and disadvantages. From an environmental standpoint, the negative impacts of gold are increasingly surpassing its benefits.
The Blessings
Economic Prosperity: Historically, gold mining has brought prosperity to Ghana, playing a significant role in its economic development as one of the world’s major gold producers. However, I believe that Ghana’s gold has provided greater advantages to Western nations rather than its own people. Why does a nation rich in gold reserves keep seeking loans from the IMF and World Bank at steep interest rates?
Cultural Importance: There’s no question that gold carries significant cultural and symbolic value. Historically, it has symbolized cleanliness and vitality within the Asante tradition. However, I find it difficult to admire the cultural relevance of gold when those who possess mineral resources still face extreme hardship.
The Curse
The following elements support my claim that gold represents more of a burden than an advantage.
Environmental degradation: Unlawful gold extraction, known as galamsey, employs harmful methods along with dangerous substances such as mercury and cyanide, leading to contamination of water sources, elimination of plant life, and making soil unsuitable for farming.
Social instability and deprivation: Residents of mining areas face extreme poverty even though they have valuable resources, lacking proper social facilities and means of support. Although large international companies gain significantly from our gold, most profits end up in the hands of influential politicians and their allies.
The surge of wealth generated through gold has, at times, resulted in reliance that hinders equitable growth, resulting in what is known as a “resource curse” instead of broad-based economic success. Clearly, although gold plays a major role in Ghana’s export earnings and foreign currency inflows, it also leads to serious ecological damage and societal upheaval throughout the nation. Illegal small-scale miners are contaminating waterways, invading agricultural land, triggering forest loss, endangering people’s lives, and making mining seem like an issue of survival for local populations. In truth, the harms we face exceed the benefits considerably.
Looking forward
An escape route involves political figures implementing rules, openness, and responsibility within the industry. It is also essential to establish policy guidelines aimed at legalizing or eliminating unauthorized mining activities, ensuring that revenues contribute to country-wide progress. Unfortunately, though, our leaders do not have the necessary determination to implement these regulations; as a result, regardless of how robust the laws may be, they will merely stay on paper.
Community Participation: Encouraging local involvement in ethical mining activities and offering different sources of income can build confidence and support long-term development. Nevertheless, present and historical approaches to community engagement have produced, or continue to produce, minimal, if any, positive outcomes.
Enhancing responsibility and openness in the management and fair distribution of mineral revenue needs to take precedence. However, based on current developments within the industry, even increased transparency and accountability may not lead to favorable outcomes. In recent years, members of the Ghana Police Service were tasked with halting illicit mining activities but did not succeed. Subsequently, personnel from the Ghana Armed Forces were granted official support to tackle this issue, yet they too fell short. Should an esteemed organization such as the Armed Forces fail to curb illegal mining, our situation appears dire.
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