Ghana’s once-thriving cocoa sector is facing an existential threat, as farmers increasingly abandon their crops for the lucrative allure of illegal gold mining, known locally as “galamsey.” Despite a dramatic tripling of cocoa prices, farmers are unable to reap the benefits due to stringent price controls, pushing them towards the more immediate and profitable returns of gold.
The Financial Times reports that the global surge in gold prices, driven by central bank purchases, geopolitical instability, and concerns over US debt, has created a golden opportunity for Ghanaian farmers. This shift, however, is having a devastating impact on the nation’s cocoa production and the environment.
The allure of gold is proving too strong to resist. “Anyone that goes up country sees it wherever they go. And it devastates every farm it touches,” Antonie Fountain, MD of the Voice Network, told the Financial Times. “Once galamsey has been in your farms, the soil and water are a contaminated wasteland.”
The environmental damage caused by galamsey is compounding the existing challenges faced by Ghana’s cocoa sector. The uncontrolled mining operations are polluting cocoa-bearing land, further diminishing yields. This environmental destruction has intensified a pre-existing crisis, which saw cocoa yields plummet by 20% last year.
Ghana, along with neighbouring Ivory Coast, produces over half of the world’s cocoa. However, crops in both countries have been dwindling since the 2020-2021 season, battered by climate change, disease outbreaks, and chronic underinvestment.
The problem is exacerbated by the fact that a significant portion of Ghana’s gold output, approximately 40%, comes from small-scale mines, many of which are unlicensed. A Reuters report from last year estimated that 70% to 80% of these small mines operate illegally.
The illicit nature of galamsey is further complicated by the alleged involvement of powerful figures. “Galamsey has almost become like a drug cartel funded by people very close to power,” said Enoch Randy Aikins, an analyst at the Institute for Security Studies. “If you have party officials and influential people involved, it becomes very difficult for any government to crack the whip.”
The situation paints a bleak picture for Ghana’s cocoa industry. With farmers being lured away by the immediate financial rewards of gold, and the environment being ravaged by illegal mining operations, the future of this vital sector hangs in the balance. The government faces the daunting task of tackling both the economic incentives driving farmers towards galamsey and the powerful interests that perpetuate the illicit mining trade.
