Galamsey: How US$3.4bn Agri-food trade hangs in a balance

Agricultural exports contribute significantly to Ghana’s economy. According to the data, agri-food products worth US$3.4billion were exported from Ghana over the period 2022 and 2023 (Ghana Statistical Service, 2023.

Ghana’s agricultural-related exports are led by Cocoa and Cocoa preparations ($1.090B), Edible fruits, nuts, peel of citrus fruit, melons (US$387.29M), and Animal, vegetable fats and oils, cleavage products ($191.31M) (Trading Economics, 2023).

It has been indicated that the non-traditional exports (NTEs) from agricultural products amounted to US$ 511,267,229 in 2022 although it declined to around US$ 494 million in 2023.

The country’s top 10 NTEs agricultural products are Cashew nuts, Banana, Fresh or chilled tunas, Shea nuts, soya beans, Yams, Flowers, Catfish and squid, Onions and shallots and medicinal plants.

The most export destinations of these products are the EU countries, USA, UK, Canada, UAE, some Asian and African countries (GEPA 2023)

However, Ghana could lose the volume and value of its agricultural exports if the issue of Galamsey is not quickly nipped in the bud. Without these export earnings, the economy could literally crash.

This emanates from the fact that the Galamsey related activities could compromise the quality of agricultural products exports leading to a possible ban or rejection as a result of Sanitary and Phytosanitary requirements.

Sanitary and Phytosanitary (SPS) Export Requirements

Prior before exporting any products to the rest of the world, certain export requirements have to be met. One the key requirements in agricultural exports is sanitary and Phytosanitry (SPS) measures. SPS are a type of technical regulation which is extremely important for the agrifood sector.

Their purpose is to protect human or animal health from food-borne risks; human health from animal or plant-carried diseases; animals and plants from pests or diseases; and to prevent other damage from pests or contaminants. SPS measures are also taken to protect the health of fish and wild fauna, as well as forests and wild flora.

In terms of food, drinks and feedstuff, it is expected that they should not contain contaminants, toxins and can contain only permitted additives. In this regard, exporters of agricultural products need to carry along the necessary certificate depicting that the product will not be harmful to the health of humans and animals.

To obtain certification, a product must pass conformity assessment criteria including inspection, and testing. This provides enough grounds to ensure that consumers are being supplied with safe and healthy foods.

Ghana has signed the WTO’s SPS Agreement in 2005the Economic Partnership Agreement (EPA) with the EU in 2014. However, the country’s agricultural produce export still faces significant SPS compliance challenges, particularly with regard to the EU market and galamsey could worsen the situation.

As disclosed by GEPA, Ghana’s yam exports continued to face challenges, largely as a result of the failure of exporters to meet quality requirements, especially concerning high chemical residues. This led to a significant loss of yams intended for the export market in the year 2023.

The Galamsey effect

Illegal miners pollute the water, air, and soil through the release of toxic chemicals. Heavy metals such as Lead (Pb), Cadmium (Cd), Copper (Cu), Mercury (Hg), Iron (Fe), Nickel (Ni), Arsenic (As) and Zinc (Zn) in water can pollute the environment as a result of illegal mining.

Data from the US Centre for Disease Control and Prevention (CDC) shows that chemicals including mercury and cyanide pollute water, air, and soil through natural processes and industrial activities, thereby posing potentially deadly threat to humans.

Contamination of crops can arise from the presence of heavy metals. This is particularly true if farms are located in areas where illegal mining activities (galamsey) take place.

The heavy metals contaminate the soil, water and environment and thus pose food safety problems. (EPA Act, 1994, Act 490). Even contaminated water used to spray crops can well also have a poisonous effect on them.

To avoid contaminants such as cadmium, products such as cocoa and derived products inter alia should come from good trees (genetics) and be well cared for and grown in a suitable environment.

Exporters also need to check contaminants that enter fish products like Tuna/Skipjack/Bonito during the various levels in the process or environmental contamination. These contaminants are restricted by the Commission Regulation (EU) 2023/915.

Possible Impact on Trade

For the agri-food sector, food safety is extremely important. As such, meeting SPS requirements builds trust and gives assurance to buyers, consumers and markets that a product is safe to consume.

The possible consequences of contamination resulting from illegal mining activity include financial losses, legal pursuit, detention or rejection of products at the border. Additional testing and loss of reputation.

A Call to Action

There is a clarion call on duty bearers to put measures in place to mitigate the phenomenon. The bell is already ringing in both in the domestic and the international world regarding the danger that galamsey is posing or likely pose to not only human health but also the quality of food crops produced in the areas where such activities are taken place.

Former Chief Executive Officer of the Environmental Protection Agency (EPA), Dr. Henry Kwabena Kokofu, at a public lecture held at the Kumasi Technical University, is quoted to have sent a strong warning on the issue: “It is important to note that the cocoa industry which has been the backbone of our economy is in dire straits because of illegal mining.

Apart from depriving the farmlands and making it unavailable for farming, cocoa is being contaminated and very soon, the world market will come after us and cite contamination in our cocoa beans and that will be a very bad story for us as a people.”

The Importers and Exporters Association of Ghana has already cautioned about the potential threat posed by galamsey to the country’s agricultural exports.

Its concern emanates from reports showing that exported food products from Ghana, including staple commodities like cocoa, yams, and vegetables, have been found to contain traces of harmful heavy metals.

Should Ghana’s agro-export be foreclosed in the international market, what it means is that the economy will lose all the foreign exchange that accrues from our exports. This could decimate the agric sector and could lead to an explosive situation.

Starting next year, Ghana would need more forex to pay for its maturing external debt and with dwindling foreign reserves at the Bank of Ghana, the cedi could face its severe adversity. Such pressure on the cedi could threaten the foundation of the economy, jobs, food security, and even national security.

One does not need to be a prophet or a Nobel Laureate in Economics to be able to predict the existential threat that Galamsey has on the economy.