Ghana's $11B Gold Smuggling, Zimbabwe Also Affecte...

Ghana's $11B Gold Smuggling, Zimbabwe Also Affected

Oscar J Jeke - Zim Now Reporter

Ghana has reportedly lost an estimated US$11.4 billion over five years due to gold smuggling from its artisanal mining sector, mirroring a widespread and persistent problem also plaguing Zimbabwe and other African gold-producing nations.

A report by Swiss-based nonprofit Swissaid highlights how a 229 metric tonnes of Ghanaian gold were exported informally, with most ending up in the United Arab Emirates, particularly Dubai. The report exposes a trade gap between Ghana’s declared gold exports and the significantly higher imports reported by recipient countries, suggesting large-scale smuggling through unofficial routes.

“This is just the tip of the iceberg,” said Ulf Laessing, Sahel programme head at the Konrad Adenauer Foundation, noting that much of the smuggled gold is flown into Dubai informally, often undeclared. “Hand-carried gold does not have to be declared in Dubai … informal gold is mostly brought in on flights,” he added.

Ghana’s Minerals Commission acknowledged the report’s accuracy, calling the revelations “a notorious fact.” The country had introduced a 3% withholding tax on artisanal exports in 2019, but the move backfired as it triggered a spike in smuggling. Although the tax was later reduced and eventually scrapped in March 2025, the loss of formal exports remains significant. The Swissaid report estimated that 34 tonnes of Ghana’s gold output in 2023 went undeclared equivalent to its entire recorded artisanal production for the year.

Zimbabwe is also grappling with severe gold smuggling losses. Mines and Mining Development Minister Winston Chitando recently acknowledged that illicit gold trading continues to undercut gains in the sector, with the country potentially losing up to 40% of its gold revenues due to criminal activity.

According to a 2020 International Crisis Group report, Zimbabwe loses an estimated US$1.5 billion annually to gold smuggling roughly 22.4 tonnes a year, or 1.87 tonnes every month. Based on current global gold prices, the first quarter of 2025 alone could have cost Zimbabwe at least US$660 million in lost revenues.

In contrast, official gold export earnings stood at US$755.24 million for Q1 2025, up from US$385.13 million over the same period in 2024, according to the Zimbabwe National Statistics Agency. However, the Home Affairs ministry maintains that Zimbabwe may still be losing up to US$100 million per month to gold smuggling.

Minister Chitando, speaking at the 2025 First Quarter Gold Mobilisation Workshop in Harare, said the government is stepping up efforts to curtail illegal mining and smuggling but admitted that “illicit activities and the ongoing issue of gold smuggling” remain serious obstacles.

These testimonials from both Ghana and Zimbabwe point to a continental pattern where billions in potential revenue are lost annually through weak oversight, tax loopholes, and porous borders.

While governments across Africa have initiated reforms and sought to centralise gold trade, enforcement remains a major challenge, particularly as global gold prices soar, recently peaking at over US$3,300 per ounce.