Professor of Finance and economist at the University of Ghana Business School (UGBS), Godfred Bokpin, has warned that Ghana cannot achieve sustainable economic development through a growth model that relies heavily on illegal mining, environmental destruction and primary commodities.

Speaking on Joy FM’s Super Morning Show on Monday, August 24, Prof Bokpin criticised illegal mining, commonly known as galamsey, for its impact on Ghana’s forests, water bodies and wider ecosystems.

He said the government had placed too much emphasis on the foreign exchange earnings and macroeconomic gains associated with gold purchases and exports through the Ghana Gold Board (GoldBod), while paying insufficient attention to the environmental costs of gold production.

“Any growth model that is heavily reliant on environmental destruction and primary commodities is never sustainable. It is weak,” he said.

Prof Bokpin called for a comprehensive value-chain assessment of the gold sector that takes into account both the financial contribution of GoldBod and the environmental damage associated with illegal mining.

He argued that Ghana could only determine whether it had truly benefited from the current gold boom after comparing the financial gains with the full cost of the destruction of forests, water bodies and ecological systems.

Prof Bokpin also criticised what he described as the government’s approach to illegal mining, saying the celebration of gains from gold trading should not overshadow the long-term environmental consequences of the activity.

He described as selfish any attempt to celebrate macroeconomic stability while overlooking the damage being inflicted on the environment and the implications for future generations.

“We are sacrificing long-term survivability for short-term praise. This is not leadership,” he said.

Prof Bokpin further warned that Ghana’s recent economic gains remained vulnerable to global commodity price shocks.

He said a sharp decline in gold prices could reverse the gains within six to eight months, further highlighting the risks of relying heavily on gold and other primary commodities to drive economic growth.

Listen to him.