Ghana Loses $11B Gold to Smuggling, Most Heading to UAE

A recent report by Swiss nonprofit Swissaid reveals that Ghana loses an estimated $11.4 billion over five years due to rampant gold smuggling, with much of the illicit bullion flowing to the United Arab Emirates, particularly Dubai. The smuggling exploits porous borders through neighboring countries like Togo, Burkina Faso, and Mali, and includes hand-carried shipments on commercial flights exploiting Dubai’s lax declaration rules. Ghana’s 2019 imposition of a 3 percent withholding tax on artisanal gold exports backfired, causing formal exports to collapse by 90 percent while smuggling surged; the tax was reduced to 1.5 percent in 2022 and fully abolished in 2024, which partially revived legal trade. Despite government efforts such as a gold traceability system and centralized purchasing programs, progress in curbing smuggling is slow, and the losses significantly undercut funding for critical sectors like healthcare and infrastructure. Experts warn that this issue reflects a broader continental challenge, with over $35 billion in African gold annually reaching Dubai through undeclared channels, often fueling regional instability and exploitation of artisanal miners. Ghana’s finance ministry has not publicly responded to the report’s findings.