Ghana's $3.5bn Food Import Bill Under Threat as Galamsey Pollution Spreads; Gold Trading Revolution Looms

Ghana faces a critical juncture in its economic development as environmental threats to agriculture collide with financial market innovations and looming utility reforms. This week's developments highlight both the urgent challenges and promising opportunities shaping the nation's future.

Galamsey Crisis: Peasant Farmers Warn of Rising $3.5bn Food Import Bill Amid Toxic Pollution

Ghana's annual food import bill of $3.5 billion could escalate further as illegal mining pollution threatens domestic agricultural production, according to the Peasant Farmers Association of Ghana.

A shocking new study by Pure Earth and the Environmental Protection Agency reveals widespread contamination from mercury, arsenic, and lead across mining regions, with findings showing:

• Mercury levels in Konongo Zongo soil at 1,342 ppm (130 times safe limit)

• Arsenic contamination in Konongo Zongo soil reaching 10,060 ppm (4000% above safe levels)

• Dangerous lead levels in fish and vegetables exceeding WHO safety limits

• Polluted water sources with arsenic levels violating drinking water standards

Bismark Nortey, Executive Director of the Peasant Farmers Association, warned that without urgent government intervention, "the impact on our nation will be catastrophic," as farmers may be forced to abandon contaminated lands and consumers grow wary of locally produced food.

The study covered six regions, Ashanti, Eastern, Central, Western, Western North, and Savannah, revealing contamination in crops including kontomire, tomatoes, cereals, and tubers, posing serious public health risks through chronic exposure.

Gold Trading Revolution: Ghana Gold Board and Commodity Exchange Plan Market Integration

In a landmark move for Ghana's financial markets, the Ghana Gold Board (GoldBod) and Ghana Commodity Exchange (GCX) have initiated discussions to introduce gold trading on the exchange platform.

This strategic partnership aims to:

• Broaden access to gold for retail and institutional investors

• Create new wealth creation and investment channels

• Formalize and modernize gold trading in Ghana

• Enhance transparency and boost investor confidence

• Position Ghana as a regional hub for structured gold markets

The initiative involves engagement with the Securities and Exchange Commission to ensure regulatory compliance and strengthen investor protection safeguards. If successful, this could transform Ghana from merely a top gold producer into a leading regulated gold investment destination in Africa.

Major Utility Tariff Adjustments Expected from January 2026 Under Multi-Year Review

The Public Utilities Regulatory Commission (PURC) has commenced stakeholder engagements for a major Multi-Year Tariff Order (MYTO) review scheduled to take effect from January 2026.

The comprehensive review will:

• Align tariffs with long-term sector investment needs

• Provide regulatory certainty for utility planning

• Address capital recovery for significant infrastructure investments

• Incorporate periodic adjustments based on economic conditions

This development comes as electricity and water providers continue pushing for substantial tariff increases to sustain operations. The MYTO framework represents a structured approach to balancing utility viability with consumer affordability.

Separately, the PURC may also announce a quarterly tariff adjustment in the coming weeks, though it remains unclear how recent cedi depreciation might influence this decision, given that other variables like inflation and crude oil costs have been declining.

Investor's Insight – MTN Ghana Shares Up 63.60% YTD

MTN Ghana shares continue their impressive rally, recording a 63.60% year-to-date gain and reaching GH¢4.02. This sustained performance demonstrates strong investor confidence in the telecommunications sector's resilience and growth potential amidst evolving market conditions.

This week's developments present a microcosm of Ghana's development challenges and opportunities. The galamsey pollution crisis threatens not only public health but also food security and foreign exchange reserves through potential increases in food imports. This environmental emergency requires urgent, multi-sectoral intervention.

Conversely, the gold trading initiative represents innovative thinking about how to maximize value from Ghana's natural resources beyond mere extraction. By creating a structured investment market, Ghana could capture more value from its gold production while developing its financial services sector.

The upcoming utility tariff review will be a critical test of balancing necessary infrastructure investment with consumer protection. How the PURC navigates this complex terrain will have significant implications for both economic competitiveness and social stability.

For investors, MTN's continued strong performance suggests confidence in sectors less directly affected by these challenges, while the gold market initiative opens new potential investment avenues in commodity trading.

Stay tuned to the Cedi Board® for real-time updates on Ghana's financial pulse. From prices and policy to investment tips that help you make sense of the numbers.