Ghana, a nation endowed with abundant natural resources, has long relied on its mineral wealth and agricultural prowess to drive economic development.

However, the proliferation of illegal small-scale mining, commonly called galamsey, has emerged as a critical challenge, threatening the country’s environmental integrity, social stability, and economic future.

Under the Akufo-Addo administration, over 2,000 mining-related licenses were issued the highest recorded in Ghana’s Fourth Republic.

While this has led to a gold boom, doubling gold export earnings in the past 8 years, the environmental, social, and economic costs are becoming impossible to ignore.

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Nowhere is this more evident than in the devastating impact on Ghana’s cocoa industry, a cornerstone of its economy.

The Gold Boom: A Double-Edged Sword

The Akufo-Addo administration’s decision to issue a record number of mining licenses was ostensibly aimed at formalizing the mining sector, generating employment, and boosting government revenue.

The results have been tangible: gold export earnings more than doubled from GHS 4.9 billion when the administration came into power in 2017 to GHS 11.6 billion in 2024, a 136.73% increment, contributing substantially to Ghana’s foreign exchange earnings and Gross Domestic Product (GDP).

This gold boom has reinforced Ghana’s position as one of Africa’s leading gold producers, attracting foreign investment and stimulating economic activity in mining communities. For a country heavily reliant on mineral resources, this seemed like a win. 

However, this gold rush has come at a steep cost. The proliferation of mining licenses has inadvertently fueled illegal mining operations, as many small-scale miners operate without proper oversight or adherence to environmental regulations. The consequences are dire, particularly for Ghana’s cocoa farms, which are being destroyed at an alarming rate.

The Devastating Impact on Cocoa

Cocoa is more than just a crop in Ghana—it’s a way of life. For decades, the country has been one of the world’s top cocoa producers, second only to Côte d’Ivoire.

Yet, the encroachment of galamsey on cocoa farms has brought the industry to its knees. Cocoa production has plummeted to its lowest levels in over two decades, with Ghana failing to meet international demand in the futures market.

Last season, the country recorded about 550,000 metric tons of cocoa, this drop in production precipitated our inability to acquire syndicated loans for cocoa purchases this season. Payments delays to farmers and farmgate prices have also contributed to smuggling over the past years with the country losing 150, 000 and 160,000 metric tons in the past two seasons respectively.

The numbers tell a grim story. Cocoa export revenue over the last eight years has slumped by a third, reflecting the widespread destruction of cocoa farms for gold mining operations coupled with climate conditions. In regions like Ashanti, Eastern, and Western Ghana, where cocoa farming once thrived, vast swathes of fertile land have been rendered barren by unregulated mining activities. Rivers that once irrigated cocoa farms now run brown with toxic chemicals, poisoning the soil and water sources essential for agriculture.

For cocoa farmers, the impact is devastating. Many have lost their livelihoods, forced to abandon generations-old family farms. Others, lured by the promise of quick money, have sold their land to miners, further accelerating the decline of the cocoa industry. The cultural and economic significance of cocoa farming in Ghana cannot be overstated, and its collapse threatens not only the economy but also the social fabric of rural communities.

The International Pricing Paradox

Ghana's cocoa is traded on futures markets, where prices are determined months or even years in advance. Ghanaian farmers often sell their cocoa at predetermined prices through the Ghana Cocoa Board (COCOBOD), which locks them into contracts that do not reflect subsequent price surges in the global market.

For instance, when global cocoa prices spike due to supply shortages or increased demand, Ghanaian farmers are unable to capitalize on these gains, as their produce has already been sold at lower prices. Ghana’s declining cocoa production has weakened its bargaining power in the global market.

As output falls, the country becomes less able to influence prices or negotiate favorable terms with international buyers. This is exacerbated by the fact that cocoa is a perishable commodity, leaving farmers with limited options for storage or delayed sales which encourages smuggling in the long run.

This scenario is evident in the latest Bank of Ghana 2025 Summary of Economic and Financial Data report for January, where in the event of cocoa prices increasing on the international market by 156% to over $10,000 per tonne, the country still recorded export earnings of about GHS 1.6 billion, the lowest in the past 8 years. The situation could have been better if production was improving but no, climate and illegal mining activities made sure it did not.

The Way Forward

Addressing the galamsey crisis requires a multifaceted approach. First, the government must strengthen enforcement mechanisms, ensuring that mining regulations are strictly adhered to. This includes holding both small-scale and large-scale miners accountable for environmental damage. 

Second, there is a need to promote sustainable mining practices. Technologies that minimize environmental impact should be encouraged, and miners should be trained in responsible practices. 

Third, alternative livelihoods must be provided for communities affected by galamsey. Programs that support cocoa farmers, such as access to credit and training in sustainable farming techniques, can help revive the cocoa industry. 

Finally, reforestation and land rehabilitation efforts must be prioritized. Restoring degraded land and polluted water bodies is essential to safeguarding Ghana’s natural heritage for future generations. 

Ghana’s battle against galamsey is a stark reminder of the delicate balance between economic growth and environmental preservation. While the gold boom has brought short-term gains, the long-term costs—particularly to the cocoa industry—are too high to ignore. The destruction of cocoa farms, pollution of water bodies, and displacement of communities underscore the urgent need for action. 

The way forward lies in a collaborative effort involving the government, private sector, and local communities. By prioritizing sustainable practices and investing in the restoration of Ghana’s natural resources, the country can secure a brighter future for its people and its environment. The time to act is now before the scars of galamsey become irreversible.