Galamsey an Existential Threat to Businesses; to Accelerate Cedi Depreciation and Inflation Amidst Agricultural Exports Decline – Joe Jackson
CEO of Dalex Finance, Joe Jackson, has issued a stark warning that illegal mining, or galamsey, could devastate Ghana’s agricultural export sector, with ripple effects across the entire economy.
Speaking during the NorvanReports, Economic Governance Platform (EGP), and BudgIT Ghana X Spaces discussion titled “Golden Promises, Muddy Realities: The True Cost of Galamsey to Ghana’s Future,” Mr Jackson described the galamsey as an “existential threat” to businesses, particularly those reliant on agriculture and exports such as cocoa.
Mr Jackson highlighted the broad economic fallout from the environmental degradation caused by galamsey, suggesting that it will lead to the collapse of key export industries, exacerbating already severe macroeconomic challenges.
He outlined a scenario where reduced agricultural output and increased imports would intensify cedi depreciation and inflation, further straining an economy already grappling with significant macroeconomic instability.
“This galamsey issue, as far as I’m concerned, is an existential issue for every Ghanaian business. If you think that the present regime of volatility in the cedi depreciation is killing your business, think of what galamsey will do to you in the medium term. If you think that unemployment is a security challenge for Ghana, think of what galamsey will do as businesses collapse,” he stated.
“The galamsey menace threatens to destroy our agri-export business, and this is not limited to cocoa but extends to all other export products, making it a critical issue for businesses across the board. The contamination of water bodies and destruction of arable land are diminishing our capacity for agricultural production, while also endangering food security. As local produce is increasingly seen as unsafe, imports will rise, putting further pressure on the cedi,” he added, further referring to a viral video advising against the purchase of locally grown vegetables due to contamination fears as evidence of the mounting distrust in domestic agriculture.
He warned that such narratives could lead to a collapse in consumer confidence, thereby increasing dependence on imports and worsening the country’s trade deficit.
Mr Jackson further noted that the repercussions extend beyond agriculture. Contaminated water bodies, he said, could cripple the fish farming industry, while the global perception of Ghana’s contribution to environmental degradation could prompt international backlash against its gold exports.
The CEO of Dalex Finance was unequivocal in his criticism of the government’s handling of the issue, asserting that efforts to curb galamsey have been ineffective. He argued that only significant public pressure would compel politicians, some of whom benefit from the status quo, to take meaningful action.
“We depend on each other and the galamsey menace in the medium term will affect each and every one of us. So let nobody think that he or she is safe, none of us is safe,” he remarked.
For Mr Jackson, the stakes are clear: galamsey poses a fundamental threat to Ghana’s economic future, and without decisive action, the country could face severe economic and social instability.
