Introduction

The fight against illegal mining, known locally as galamsey, remains one of Ghana’s most complex challenges. While the environmental devastation caused by polluted rivers and destroyed landscapes is visible, the economic drivers keeping the practice alive are often overlooked. In a recent address, Joe Jackson, the Chief Executive Officer of Dalex Finance, offered a critical economic perspective on the crisis. He argued that relying solely on military enforcement and the destruction of equipment is a strategy doomed to fail unless the underlying economic incentives are addressed. This article explores Jackson’s proposal for a holistic approach that combines regulation, financial support, and formalization to create a sustainable solution to the galamsey menace.

Key Points

Background

Galamsey refers to small-scale illegal mining in Ghana. Historically, this practice has been a source of livelihood for many in rural areas, but it has evolved into a major environmental hazard. The term is derived from “gather and sell,” highlighting the informal nature of the trade. Over the years, the Ghanaian government has deployed various task forces, often involving military personnel, to combat the menace. These operations typically involve the seizure and destruction of excavators and mining equipment.

Despite these efforts, galamsey continues to thrive. The Environmental Protection Agency (EPA) and water utility companies have repeatedly warned about the pollution of major water bodies like the Pra, Ankobra, and Offin rivers. The chemical runoff, particularly mercury used in gold extraction, poses long-term health risks. However, for many miners, the immediate economic gain outweighs the fear of arrest or the long-term environmental cost. It is within this context that Joe Jackson, a veteran in the financial sector, intervened with a plea for a shift in strategy.

Analysis

The Economic Logic Behind Illegal Mining

Joe Jackson’s core argument is rooted in basic economic theory: supply and demand. He posits that “People engage in illegal mining because legal mining does not pay.” The current regulatory framework for legal small-scale mining is often described as bureaucratic, expensive, and inaccessible for the average artisanal miner. Consequently, the “illegal” route, though risky, offers a higher and faster return on investment. Jackson challenges the nation to look beyond the symptoms (environmental destruction) and address the cause (economic desperation).

Why Enforcement Alone Fails

Historical data suggests that punitive measures alone rarely work in the long term. When a task force burns an excavator, the immediate impact is the loss of capital. However, if the demand for gold and the high unemployment rate in mining communities remain unchanged, new equipment will eventually find its way back into the pits. Jackson refers to this as the “gun and fire” approach. While it creates a temporary lull, it does not alter the economic landscape that makes illegal mining the “only alternative” for many.

The Proposal: Formalizing Artisanal Mining

Instead of destruction, Jackson proposes investment. His analysis suggests a three-pronged approach:

1. Access to Credit: Most artisanal miners lack the capital to set up formal operations. Financial institutions, like Dalex Finance, could play a role in bridging this gap.
2. Provision of Legal Equipment: By subsidizing or providing modern, environmentally friendly mining equipment, the state can reduce the environmental footprint of small-scale mining.
3. Cooperatives and Regulation: Organizing miners into cooperatives makes it easier for the state to monitor activities, enforce environmental standards, and collect taxes.

This approach shifts the narrative from “criminals vs. the state” to “partners in national development.”

International Context and Lessons

Jackson draws a comparison with South Africa, where the mining sector is more structured. While South Africa still faces challenges with illegal mining, there are established frameworks for artisanal miners to operate legally. By learning from such models, Ghana can adapt best practices to fit local realities. The goal is to transform galamsey from a destructive vice into a regulated, tax-paying, and environmentally conscious industry.

Practical Advice

How the Gold Board Can Facilitate Change

One of the most actionable points raised by Joe Jackson is the utilization of the Gold Board (or GoldBod). Here is how this mechanism could work in practice to combat galamsey:

• Revenue Reinvestment: Instead of funds going solely into general government coffers, a specific percentage should be earmarked for a “Community Mining Fund.”
• Equipment Leasing: The Board could establish a leasing program where miners can rent modern equipment (like excavators with silt traps) at low interest rates, provided they adhere to environmental protocols.
• Market Access: Formalized miners often struggle to sell their gold at fair prices. The Gold Board can offer guaranteed buy-back schemes for gold mined legally, making the legal route more profitable than selling to illicit buyers.

Financial Inclusion for Miners

For the financial sector, Jackson’s call is a directive. Banks and fintechs must innovate products specifically for the mining sector. This includes:

• Micro-loans for initial setup costs.
• Insurance products covering health risks (kidney failure, respiratory issues) associated with mining.
• Education on how to manage mining operations as a business rather than a survival activity.

Frequently Asked Questions (FAQ)

What is the difference between legal small-scale mining and galamsey?

Legal small-scale mining involves obtaining a license from the Minerals Commission, adhering to environmental impact assessments, and following specific guidelines for land reclamation. Galamsey operates outside these regulations, often on unauthorized lands, without environmental safeguards, and uses hazardous chemicals like mercury indiscriminately.

Why does Joe Jackson think force won’t work?

He believes that force addresses the symptom, not the cause. As long as the economic conditions make illegal mining more profitable than legal alternatives, people will return to it as soon as enforcement teams leave. He advocates for making legal mining economically attractive.

What role does the Gold Board play in stopping galamsey?

According to Jackson, the Gold Board should use its resources to fund the transition to legal mining. This includes providing equipment, credit access, and structured markets to ensure that miners can earn a living without breaking the law.

Is Joe Jackson against arresting illegal miners?

No. He clarifies that he is not against law enforcement. He states that the “gun and the fire have their place.” However, he insists that enforcement must be balanced with social and economic programs that support the communities involved in mining.

What are the health risks of galamsey?

Miners and local residents face severe health risks, including kidney failure, birth defects, and various forms of cancer due to exposure to toxic chemicals like mercury and cadmium. The pollution of water bodies also leads to waterborne diseases.

Conclusion

Joe Jackson’s intervention provides a necessary pivot point in the discourse surrounding galamsey. By framing the issue as an economic problem rather than solely a criminal one, he opens the door to sustainable solutions. The path forward requires a delicate balance: maintaining the rule of law through enforcement while simultaneously dismantling the economic desperation that fuels illegal mining. As Ghana continues to grapple with the environmental crisis, the call to formalize artisanal mining, support it with credit, and utilize the Gold Board’s resources offers a pragmatic blueprint for a future where mining benefits the economy without destroying the environment.

Sources

• Life Pulse Daily: Original report on Joe Jackson’s statements at the Joy Business end-of-year forum (December 18, 2025).
• Joy Business: Coverage of the end-of-year financial forum.
• Dalex Finance: Public statements and economic analysis by CEO Joe Jackson.
• Environmental Protection Agency (Ghana): Reports on the impact of illegal mining on water bodies.