The economic impacts of illegal mining widely known as galamsey in the medium term have been found to be catastrophic for the country.
Business Executive and Consultant, Joe Jackson believes there is an over-emphasis on the environmental and health implications of the menace neglecting the serious economic consequences.
Not only should the focus be on the polluted river bodies, the rampant death pits, and the rising health implications, but, Joe Jackson is averting the minds of the country to the impact of the menace on macroeconomic indicators such as cedi depreciation, inflation, and overall government expenditure due to rise health expenses.
“Unsafe and expensive water is the least of your problems with the Galamsey menace,” the Executive Director of Dalex Finance contended.
He further reveals that “in the medium term, the cedi will depreciate. Inflation will rise. Health costs will increase. Agric produce export incl. cocoa will collapse etc.”
Joe Jackson explains that the existential threat of galamsey threatens food production in the country as produce becomes carcinogenic. This he believes will possibly lead to the collapse of food exportation and skyrocketing food prices. To shore up the imminent food shortage, the country will be forced to import food leading to a rising importation bill.
Moreover, the situation Joe Jackson contends will also affect the fish farming industry and also make the water bodies unsuitable for irrigation.
The destruction of the environment is anticipated to make tourist sites unattractive leading to loss of revenue and loss of employment. In addition, government expenditure will surge amid dwindling revenues due to rising expenditure in the health sector to treat health complications of illegal mining.
With the various negative impacts of illegal mining on some critical sectors of the economy, Joe Jackson believes there will be a “depreciation of cedi due to reduced agricultural exports.”
In addition, the rising food prices coupled with food importation is expected to drive inflation.
The real price of illegal mining, Joe Jackson believes will be felt in the economy, where the devaluation of the cedi, rising inflation, collapsing exports, and mounting health costs could lead to a national crisis of unprecedented proportions.
