Ghana identified as major transit point for illegal gold trading
Ghana, a major player in the global gold market, has been identified as a major transit point for the illicit shipment of the precious metal. A recent report by safety standards-oriented company, OriginAll, has identified Ghana, Sudan, Ethiopia, and Uganda as major illegal gold trading routes, with export destinations being Switzerland, the United Arab Emirates, and India.
According to the report, local gold refineries in Ghana are being extensively used to launder gold from illicit sources in an artisanal mining sector that involves several million people, forced labor, and high risks. The country loses over $2 billion annually in unpaid royalties and taxes on gold smuggled out of the country, according to the Ministry of Lands and Natural Resources.
The report by OriginAll further suggests that illicit gold mining is becoming a rising source of income for cartels, criminal gangs, and non-state armed groups, with the mineral sector accounting for 17% of global threat and conflict finance, compared to drugs at 28%. The report also highlights that capital flight from the African mineral sector has been estimated at $50 billion, with illicit annual exports from extractive industries in Africa accounting for at least $31 to $98 billion.
Ghana’s role as a major player in the global gold market is also highlighted by the fact that the country’s gold exports remain unaccounted for. An assessment of the trade data between Ghana and its three major gold trading partners—Switzerland, India, and the United Arab Emirates—reveals that over $6 billion worth of gold exports remain unaccounted for from 2013 to 2016. The figure is expected to rise significantly if all export and import data between all of Ghana’s gold trading partners were to be examined.
For example, from 2013 to 2016, the gold import-export variance between Ghana and Switzerland amounted to over $3 billion. While Switzerland’s gold import figures revealed that they had imported close to $7 billion worth of gold from Ghana, Ghana’s official records indicated an export of a little over $3 billion.
The report by OriginAll raises concerns that illicit gold mining is becoming a rising source of income for cartels, criminal gangs, and non-state armed groups, with the mineral sector averaging 17 per cent of global threat and conflict finance, compared to drugs at 28 per cent. Companies typically pay only 0 to 4 per cent tax on official amounts.
The report comes on the back of an investigative piece by Al Jazeera, which recently stoked debate about how some Ghanaian officials could be complicit in illicit gold trades and money laundering activities for a group of mafias controlling the gold industry in Africa. A gold trader exposed in Al Jazeera’s Gold Mafia investigative documentary, Alistair Mathias, has revealed that he smuggles $40 million worth of gold from Ghana monthly.
Alistair Mathias, described by the investigative reporters as a financial architect who builds money laundering schemes for corrupt politicians, claimed that President Akufo-Addo is his friend and lawyer. “Ghana’s president is a good friend of mine. In fact, he was my lawyer,” Mathias was recorded saying.
The allegations made by Alistair Mathias are significant and highlight the need for greater scrutiny of the gold industry in Ghana. The country’s gold exports remain unaccounted for, and the use of local gold refineries to launder gold from illicit sources is a serious concern. The fact that illicit gold mining is becoming a rising source of income for cartels, criminal gangs, and non-state armed groups, further underscores the need for greater regulation of the gold industry in Ghana.
