Illegal small-scale mining, commonly referred to as galamsey, remains one of Ghana’s most pressing policy challenges. The issue is deeply entrenched in the country’s socio-economic fabric, making it not only an environmental and economic concern but also a highly sensitive political matter.

Galamsey plays a significant role in Ghana’s mining industry, accounting for an estimated 60% of the total mining workforce and serving as a critical source of livelihood for millions of people. Despite its economic contribution, the sector operates largely outside the formal regulatory framework, leading to severe environmental degradation, loss of government revenue, and increasing tensions between local communities, foreign miners, and large-scale mining companies.

Government’s Struggles to Eradicate Galamsey

In 2017, President Nana Akufo-Addo made a bold promise to eliminate galamsey “once and for all.” However, nearly a decade later, the practice remains widespread, contributing over 30% of Ghana’s total gold production. Several factors have hindered the government’s efforts to combat illegal mining, including governance weaknesses, opportunistic electoral strategies—particularly in Ghana’s Western region—and the criminalization of artisanal mining during Akufo-Addo’s first term. Rather than curbing galamsey, these measures have, in many cases, pushed the sector further underground, making it even harder to regulate.

The situation has been exacerbated by the introduction of more sophisticated mining equipment, the use of hazardous chemicals such as mercury and cyanide, and the increasing involvement of foreign, predominantly Chinese, miners. These developments have amplified the environmental and social costs associated with illegal mining, including deforestation, water pollution, and conflicts between miners and local communities.

A National Dialogue on Galamsey?

Recognizing the persistent nature of the problem, the government announced in January 2021 that it was considering a national dialogue on galamsey as part of a new strategic approach. While this initiative was mentioned in President Akufo-Addo’s final State of the Nation Address, details about the roadmap, key stakeholders, and expected outcomes of the dialogue remain unclear. This lack of transparency has fueled public skepticism about the administration’s willingness and ability to decisively tackle illegal mining.

Samuel Abu Jinapor, Ghana’s Minister for Lands and Natural Resources, has identified addressing galamsey as one of his top priorities. During his parliamentary vetting, he reaffirmed the government’s commitment to regulating the sector and protecting the environment. However, he faces a significant challenge in restoring public confidence, especially given the perception that previous government interventions have failed to yield tangible results.

The Environmental and Economic Costs of Galamsey

Illegal mining has left a devastating impact on Ghana’s environment. An International Crisis Group (ICG) study conducted in the Western region estimated that rehabilitating lands and waterbodies destroyed by galamsey would cost the country approximately $250 million. In March 2017, the Ghana Water Company issued a stark warning that persistent water pollution caused by illegal mining could render Ghana dependent on imported drinking water by 2020.

Beyond the environmental toll, galamsey has significant economic implications. In 2016 alone, the Ghanaian government lost an estimated $2.3 billion in fiscal revenue due to illegal mining activities. In contrast, Ghana’s top three foreign mining companies—Kinross, Gold Fields, and the Galiano-Gold Fields joint venture—collectively produce over a third of the country’s gold and contribute more than 50% of total mining-related government revenue. Gold royalties paid to the state surged from $42 million in 2007 to $207 million in 2019, primarily due to increased production by large-scale mining firms.

The Case for Formalization

Given the sheer scale of galamsey operations—both in terms of output and workforce—it is increasingly evident that formalizing the sector could provide Ghana with a much-needed fiscal boost. With over three million people relying on illegal mining for their livelihoods, regulating and integrating small-scale miners into the formal economy could enhance revenue collection, improve working conditions, and mitigate environmental damage.

This need for formalization has become even more urgent in the wake of the COVID-19 pandemic, which has strained government finances and highlighted the importance of revenue diversification. By implementing a structured and well-regulated framework for small-scale mining, Ghana could reduce illegal mining’s adverse effects while simultaneously increasing its tax and royalty earnings from the sector.