African gold worth $35 billion is smuggled annually, mainly to the UAE. SwissAid reports 435 tonnes illegally exported in 2022, fueling conflict and crime.
A recent report by SwissAid, a Switzerland-based aid and advocacy organization, reveals that approximately $35 billion worth of gold produced by artisanal and small-scale miners in Africa, the leading bullion-producing continent, goes undeclared annually and is subsequently smuggled out.
SwissAid’s findings indicate that in 2022 alone, 435 tonnes of gold were illicitly exported from Africa, with the United Arab Emirates (UAE) receiving the majority share of 405 tonnes. Over the past decade, more than 2,500 tonnes of smuggled gold, valued at over $115 billion, have reportedly entered the UAE.
Once in Dubai, this gold often proceeds to European markets, including Switzerland. SwissAid points out that once declared as imported by countries like the UAE, the gold can be legally re-exported to other nations. The NGO criticizes the destination countries for having inadequate regulations to verify the true origin of the metal.
The UAE Ministry of Economy responded to SwissAid, stating that it is only responsible for its own export records and that it employs advanced tracking and authentication technologies. The ministry emphasized its commitment to preventing money laundering within the gold sector.
Decades-Long Problem
SwissAid asserts that the revenues from smuggled African gold continue to fund conflicts and support criminal and terrorist networks, thereby undermining democracy and facilitating money laundering. The report identifies Mali, Ghana, and Zimbabwe as the primary sources of this illegally traded gold.
The comprehensive study examined gold production and trade across all 54 African countries over more than a decade. The researchers aimed to highlight unfair practices and the lack of oversight by governments and stakeholders, urging for better regulation of the industry.
Marc Ummel, head of SwissAid’s raw materials unit and co-author of the report, stated, “Governments must no longer hide behind poor data quality to justify their inaction; they must take responsibility by enhancing controls and formalizing the sector.”
A similar 2020 report by a United Nations expert group revealed that over 1.1 tonnes of gold mined in the Democratic Republic of Congo were smuggled into neighboring countries. The UN found that Uganda and other adjacent nations were exporting significantly more gold than they produced, suggesting they were receiving smuggled Congolese gold.
The smuggling of African gold spans at least nine countries and has been a longstanding issue, further exacerbated by the recent surge in bullion prices, which recently hit a record high of $2,449.89 per ounce
