Ghana Labeled a “GalamState” as Illegal Mining Costs the Nation $2.3 Billion Each Year
Ghana is at risk of evolving into a “GalamState,” a captured state where illegal mining is normalised and institutions have been compromised by entrenched corruption, according to Professor Kwesi Anning, Director of the Faculty of Academic Affairs and Research at the Kofi Annan International Peacekeeping Training Centre.
Speaking at a Post-Manifesto Engagement with Political Parties organised by the United Kingdom-Ghana Gold Programme (UKGGP) on Tuesday, September 24, Mr Anning outlined a troubling trend of state failure tied to the proliferation of illegal mining, known locally as galamsey.
In his presentation, the security expert coined the term “GalamState” to describe Ghana’s current trajectory, warning that the country’s key institutions—the legislature, executive, judiciary, regulatory agencies, and private sector—are increasingly being captured by organised criminal networks linked to the illegal mining industry.
“The term ‘GalamState’ reflects a situation in which the state’s structures have been hijacked by a blend of criminally minded politicians and politically minded criminals,” Mr Anning stated, underscoring the intertwining of political and criminal networks. “The result is a hybrid governance model that fundamentally weakens the state’s ability to enforce laws and regulations.”
Mr Anning speaking further at the post-manifesto engagement warned that Ghana’s weak criminal justice system, combined with ineffective regulatory frameworks and leadership that is “loose and liberal,” is allowing both domestic and international criminals to exploit the country’s rich mineral resources.
He added that without urgent reform, the next phase in the evolution of this “GalamState” would likely see the rise of mafia-style criminal organisations capable of exercising territorial control, further undermining state authority.
Ghana has long been a major gold producer, with artisanal and small-scale mining (ASGM) contributing between 30% and 40% of the nation’s annual gold production. While this sector provides critical livelihoods for many rural communities, it also drives substantial illegal activity.
According to industry estimates, Ghana loses approximately $2.3 billion annually due to gold smuggling, as up to 3 tonnes of gold produced each month by small-scale miners are trafficked out of the country, bypassing official channels.
The proliferation of illegal mining is not just a Ghanaian problem, but one that affects many sub-Saharan African countries. ASGM is estimated to involve between 10 and 25 million people across the region, making it one of the most important non-agricultural livelihood activities.
However, the sector operates largely outside formal regulatory frameworks, with only a fraction of ASGM gold entering the formal market. Globally, ASGM accounts for 20% of total gold production, but only 3% of the gold refined by London Bullion Market Association-accredited refiners comes from artisanal sources.
