Chinese nationals have become central players in Ghana‘s illegal artisanal and small-scale gold mining (ASM) sector, operating largely through local proxies to circumvent mining laws, according to a new report by SWISSAID. The report, published on June 11, offers a detailed account of how foreign actors, predominantly Chinese, have altered the character of Ghana’s ASM industry while contributing to widespread smuggling and environmental degradation.
Although Ghana’s Minerals and Mining Act restricts ASM licences to Ghanaian nationals, the report finds that Chinese investors have long evaded these rules by forming covert partnerships with local licence holders. These arrangements have allowed them to finance and manage mining operations across the country, often on a larger and more mechanised scale than traditional ASM methods allow.
The influx of Chinese miners began in the late 2000s and escalated rapidly. By 2013, as many as 50,000 Chinese nationals were estimated to be operating in Ghana’s gold fields, often using heavy machinery that has caused severe environmental harm, particularly in forest reserves and river systems.
The report notes that while the presence of Chinese operators in illegal mining is well-documented, enforcement has been weak and inconsistent, due in part to widespread complicity from local intermediaries, traditional leaders, and sometimes state officials. This collusion has enabled foreign actors to maintain control over production and supply chains without direct legal accountability.
Recent policy responses reflect growing concern. In 2025, Ghana passed the Ghana Gold Board Act, which explicitly bans foreigners from participating in gold trading activities in the country. The move was widely interpreted as a direct response to the deepening role of Chinese traders and financiers in the illicit gold economy.
In 2024, the Chinese Ambassador to Ghana publicly acknowledged that Chinese nationals were involved in illegal mining activities. The ambassador issued a warning to Chinese citizens in Ghana to refrain from such conduct, highlighting the rising tensions around the issue and increasing scrutiny from Ghanaian authorities.
However, the SWISSAID report cautions against over-simplifying the issue as a foreign problem. It emphasises that Chinese involvement in the sector is facilitated by systemic regulatory failures within Ghana itself. The report states that many Chinese actors are able to operate only because local partners willingly provide cover and benefit financially from the arrangements.
This fusion of foreign capital and local protection has transformed much of the ASM landscape from subsistence mining to large-scale illegal operations that escape regulation and oversight. These operations also feed into smuggling networks, with significant volumes of gold exiting the country via informal routes to destinations such as Dubai, bypassing customs and tax systems.
The long-term implications are serious. Ghana, which is Africa’s leading gold producer, lost an estimated $11.4 billion in undeclared gold exports between 2019 and 2023, much of it linked to the informal sector. Meanwhile, environmental damage caused by illegal operations continues to threaten agriculture, water security, and rural livelihoods.
As enforcement struggles to keep pace with the scale of the challenge, the Ghana Gold Board has been tasked with centralising and regulating ASM gold exports. Its success will depend not only on technical capacity but on the political will to confront entrenched interests, both foreign and domestic.
The SWISSAID report makes clear that the gold smuggling crisis in Ghana is not merely about lost revenue. It is also a story of regulatory capture, external exploitation, and the urgent need to reclaim sovereignty over the country’s most valuable natural resource.
Last Updated on June 19, 2025 by Senel Media
