Gold has always been at the heart of Ghana’s economy, a shimmering symbol of national pride and a vital source of revenue. As Africa’s largest gold producer and the world’s sixth overall, the country’s mineral wealth should be a shield against economic volatility. Yet, as 2025 draws to a close, Ghana finds itself staring down a mounting crisis—one that’s as much about poisoned rivers and sick children as it is about lost billions and vanishing opportunities.
Recent investigations, including a government-backed study reported by Reuters and a detailed analysis from Graphic Online, have revealed the scale of the threat posed by illegal small-scale mining, or galamsey. What started as a concern about environmental degradation has now erupted into a full-blown economic and public health emergency, with the consequences rippling from rural communities to the very core of Ghana’s financial stability.
Gold accounts for nearly 40 percent of Ghana’s total export earnings, according to Graphic Online. In 2022, the country overtook South Africa as Africa’s top gold producer—a milestone that, in theory, should have bolstered national confidence and filled government coffers. But the reality on the ground tells a far more troubling story. Instead of strengthening the economy, much of Ghana’s gold is being siphoned off through illegal channels, feeding black markets and draining the state of critical resources.
Estimates suggest that Ghana loses billions of dollars every year to illegal gold exports. Every ounce smuggled out of the country represents not just lost foreign exchange, but also missed taxes, royalties, and community development funds. The black-market trade feeds corruption, strengthens criminal networks, and undermines transparency. As Graphic Online puts it, “galamsey robs the country twice: first, through lost revenue; and second, through the future costs of repairing the damage it leaves behind.”
The environmental toll is staggering. Rivers that once sustained entire communities are now choked with silt and laced with toxic chemicals. The Ghana Water Company Limited has seen daily water treatment costs in places like Konongo skyrocket from about GH₵7,000 to over GH₵80,000. Some treatment plants on the Pra and Birim rivers are nearing shutdown because the water is simply too polluted to clean. When that happens, entire towns are forced to rely on expensive sachet or bottled water, straining household budgets and putting basic needs like food and education on the back burner.
The industrial sector isn’t spared, either. Beverage producers, farmers, and fisheries that depend on clean water are now forced to treat their own supply or import alternatives, driving up the price of everyday goods. This so-called “water debt” is more than just a short-term headache—it’s a generational burden. Restoring Ghana’s rivers and ecosystems will take decades and cost billions. If current trends persist, future governments may face the unimaginable: importing water to keep cities alive.
But perhaps the most harrowing impact of galamsey is on public health. According to a government-backed study by the New York-based group Pure Earth and Ghana’s Environmental Protection Authority, mercury contamination in some mining communities has reached levels up to 134 times what the World Health Organization (WHO) considers safe. Soil samples from Konongo Zongo averaged 56.4 parts per million (ppm) of mercury, with peaks as high as 1,342 ppm. Arsenic levels were even more alarming, reaching 10,060 ppm—over 4,000 percent above WHO guidelines.
“The cumulative exposure to this cocktail of toxic metals through multiple pathways—ingestion, inhalation and dermal contact—is a serious health hazard requiring immediate intervention,” the report warned, as cited by Reuters. The consequences are already being felt. Anthony Enimil, a member of Ghana’s Pediatric Society, told Reuters, “We’re seeing more children from mining areas with kidney disorders—some are now on dialysis. X-rays show mercury pellets in their bodies after accidental ingestion.”
Mercury exposure is linked to kidney failure, neurological disorders, and developmental problems in children. Dialysis for kidney failure can cost upwards of GH₵5,000 a month—a sum far beyond the means of most rural families. Arsenic, meanwhile, increases the risk of skin damage, respiratory problems, and cancers of the lung, bladder, and skin. The rising tide of illness is overwhelming hospitals and placing an unbearable burden on Ghana’s National Health Insurance Scheme.
And the devastation doesn’t stop at the clinic door. Sick farmers can’t work their fields, traders lose income, and families are plunged into poverty. Productivity drops, tax revenues shrink, and the nation’s growth slows. The story of Kwame, a 42-year-old farmer from the Western Region, is sadly typical. After years of drinking from a river contaminated by upstream galamsey activity, his kidneys failed. Unable to afford ongoing dialysis, his family sold their land and livestock just to keep him alive—a tragic, all-too-common outcome in affected communities.
Galamsey’s assault on Ghana’s agriculture is just as severe. Farmlands that once produced cocoa, rice, maize, and vegetables are being destroyed daily. Topsoil is stripped away, irrigation systems are poisoned, and cocoa—the backbone of rural livelihoods and Ghana’s status as the world’s second-largest producer—faces an existential threat. If illegal mining continues unchecked, the country risks losing a significant chunk of its cocoa output, cutting into export earnings and deepening rural poverty.
The food security consequences are already visible. With farmland degraded and water supplies tainted, crop yields are falling. Farmers who lose their land are often forced into galamsey themselves, perpetuating a vicious cycle. Food prices rise, imports increase, and Ghana’s foreign reserves come under even greater pressure.
In response, the Ghanaian government has taken some steps. Mercury use in gold amalgamation has been banned, and the Gold Kacha concentrator—a safer alternative—has been promoted. “We have banned the use of mercury in gold amalgamation and now use the Gold Kacha as a safer alternative. We are also stepping up sensitisation,” said Godwin Armah, General Secretary of the Ghana National Association of Small-Scale Miners, according to Reuters. President John Dramani Mahama has promised a crackdown on illegal mining and established the Ghana Gold Board to oversee the sector. But critics argue that progress has been slow, and Ghanaians have staged protests demanding more decisive action.
With the scale of destruction now so severe, many experts and commentators, including Graphic Online, are calling for the government to declare galamsey a state of emergency. Such a move would empower authorities to act swiftly, protect critical river basins, reclaim degraded lands, and direct resources toward restoration and alternative livelihoods. International donors and climate funds might also be more willing to help if Ghana demonstrates real urgency.
There are, of course, concerns about political backlash or disruptions to civil liberties. But as the evidence mounts, the risks of inaction appear far greater. Without decisive intervention, Ghana could face the collapse of its clean water supply, the decline of its cocoa industry, and a weakened currency. The choice is stark: act now to save the nation’s gold, land, and people—or pay a far higher price in the years to come.
For a country that has long prided itself on its golden riches, the current crisis is a sobering reminder that true wealth is measured not just in ounces, but in the health of its people and the resilience of its land. Ghana stands at a crossroads, and the world is watching to see which path it will take.
