Nine in 10 respondents in the KPMG/UNDP 2027 Pre-Budget Survey say illegal mining is actively damaging Ghana’s business environment, with an overwhelming majority calling for stricter law enforcement to protect water resources, agricultural supply chains, and investor confidence.
The report found that 90% perceived illegal mining as harmful to the business environment, while 63% described the impact as severe.
KPMG and UNDP say the results show that businesses increasingly view damage to land, water and livelihoods as an economic problem as well as an environmental one.
Focus group discussions also highlighted concerns about the effect of environmental degradation on farming communities, water resources and local economic activity.
Stronger enforcement tops preferred solutions
Stronger enforcement emerged as the most popular intervention, supported by 59% of respondents.
Another 42% favoured prosecution of financiers behind illegal mining, while 25% backed river and land restoration.
Formalisation of small-scale mining was supported by 24%, alternative livelihood programmes by 22% and water treatment by 9%.
The findings indicate that respondents want enforcement to extend beyond people physically operating at mining sites.
The financing networks and individuals supporting illegal operations should also face investigation and prosecution, the report argues.
At the same time, KPMG and UNDP recommend lawful alternatives for communities whose incomes depend on small-scale mining.
Alternative livelihood programmes, they say, should include access to markets and finance rather than ending with short-term training.
Green incentives also attract support
Respondents also showed strong support for using the tax system to encourage environmentally responsible investment.
About 68% supported green tax incentives even where they would temporarily reduce government revenue.
KPMG and UNDP recommend that such incentives be targeted at investments with measurable environmental benefits, including energy efficiency, cleaner production, renewable energy and pollution reduction.
Any relief should have clear eligibility conditions, expected environmental outcomes and an expiry or review period, according to the report.
The authors also want government to improve coordination between environmental regulators, minerals authorities, law enforcement agencies and local government when dealing with illegal mining.
Water quality monitoring, degraded-land restoration and responsible regulation of small-scale mining should form part of the response.
The survey was conducted ahead of the 2027 Budget, at a time when government faces pressure to reconcile mining revenue and employment with growing concerns about environmental damage.
For respondents, the economic argument for action appears increasingly strong.
If productive land, water systems and livelihoods are destroyed, the cost of galamsey does not remain confined to mining communities. It eventually reaches agriculture, businesses, public finances and the wider economy.
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