Professor Godfred Bokpin, a distinguished economist and Professor of Finance at the University of Ghana Business School, has sharply criticised attempts to justify environmental destruction in Ghana with macroeconomic gains from gold trading. He argues that Ghana cannot claim economic improvement while forests, water bodies, and ecosystems suffer severe damage from irresponsible mining activities.
Professor Bokpin emphasised that the environmental costs of gold production must be fully accounted for when evaluating the sector’s economic contribution. He stated that it is a selfish position to cause such harm to the environment and water bodies in the name of macroeconomic stability. This perspective emerged during a discussion on Joy FM’s Super Morning Show on Monday, August 24, focusing on reported losses under the Domestic Gold Purchase Programme (DGPP).
Ghana’s economy has historically relied heavily on primary commodities, with gold being a significant foreign exchange earner. The country is one of Africa’s largest gold producers. However, the environmental impact of illegal mining, locally known as galamsey, has become a major national concern. This activity has polluted major rivers, degraded vast tracts of land, and threatened agricultural productivity, raising questions about the true cost of economic growth.
Professor Bokpin maintained that assessing Ghana’s gold sector must extend beyond foreign exchange earnings, reserve accumulation, and improvements in key economic indicators. He called for a comprehensive value-chain analysis. This analysis should incorporate the cost of environmental degradation and the loss of ecological integrity. Only then can the country accurately determine if it has genuinely benefited from the gold boom.
The economist warned that Ghana risks sacrificing its long-term sustainability for short-term economic gains if environmental destruction continues to be an acceptable cost of economic growth. He stressed that responsible leadership requires policymakers to pursue economic policies that protect the nation’s natural resources. Such policies must also create sustainable prosperity for future generations. Professor Bokpin concluded that any growth model heavily reliant on environmental destruction and primary commodities is inherently unsustainable.
Policymakers and market participants will closely monitor how these concerns influence future mining regulations and economic development strategies. The debate highlights the tension between immediate economic benefits and long-term environmental stewardship. Ghana’s government faces increasing pressure to balance these competing priorities. The long-term implications for public health, agriculture, and tourism are substantial. A shift towards more sustainable practices could impact investment flows and international partnerships.