Business Daily
How to reduce west Africa’s smuggling problem
Apr 21, 2025
The podcast dives deep into West Africa's smuggling crisis, particularly focusing on the illegal movement of gold. It discusses how smuggling has become a vital livelihood for many while costing governments billions in lost revenues. Insights reveal the role of corruption among officials in perpetuating this trade. Suggestions for downgrading smuggling include promoting a well-functioning free trade area and enhancing governance. Additionally, the informal economy's impact on local communities is explored alongside the economic incentives behind smuggling.
20:21
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Quick takeaways
- Cross-border smuggling in Ghana is primarily driven by economic disparities, particularly fuel price differences with neighboring Burkina Faso.
- Improved governance and regulatory frameworks are essential to support legal mining operations and reduce the smuggling of gold in Ghana.
Deep dives
Economic Incentives for Smuggling
The podcast highlights the significant economic factors that drive cross-border smuggling in Africa, particularly focusing on the price differentials and subsidies that incentivize illegal trade. It illustrates how the price of fuel in Ghana is notably lower than in Burkina Faso, prompting residents to smuggle fuel to serve local markets where affordability is a pressing issue. By examining the cattle and livestock market, the discussion reveals that economic pressures often dictate smuggling activities, driven by the pursuit of profit amidst disparities in pricing. Experts suggest that rather than focusing solely on enforcement, a deeper understanding of the economic conditions fueling smuggling could lead to more effective solutions.
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