Billions of dollars’ worth of gold is smuggled out of Africa each year, mostly ending up in the United Arab Emirates. There, it is refined and sold worldwide, according to a report published Thursday May 30.
In 2022, over $30 billion in gold, or more than 435 metric tons, was smuggled out of Africa, says the report by Swissaid, a Swiss aid and development group. The main destinations for this gold were the United Arab Emirates, Turkey, and Switzerland, the report stated. This illegal gold trade not only robs African countries of significant revenue but also perpetuates corruption and environmental damage in the region.
A Call for Transparency
The authors of the report said their goal was to make the trade in African gold more transparent and put pressure on industry players to do more to make gold supplies traceable and supply chains more responsible. By shedding light on the illicit trade, the hope is to improve the living conditions of local populations and the working conditions of artisanal miners throughout Africa.
The report found that between 32% and 41% of gold produced in Africa was not declared. In 2022, Ghana was the largest gold producer in Africa, followed by Mali and South Africa.
Destination: UAE
Between 2012-2022, 2,569 metric tons of gold, worth around $115 billion, were smuggled to the United Arab Emirates. The report highlighted the significant gap between UAE imports and exports from African countries, indicating an alarming increase in smuggled gold over the past decade. The UAE’s role in the illicit gold trade raises concerns about the transparency and accountability of its gold market.
Swiss Involvement
Switzerland, another main buyer of African gold, imported some 21 metric tons of undeclared gold from Africa in 2022. The report suggested that the actual volume of African gold reaching Switzerland could be much higher if gold imported through third countries was taken into consideration. This lack of transparency in the gold refining process makes tracing the origins of African gold difficult.
Global Impact and Response
The report raises questions about the responsibility of countries like the UAE and Switzerland in preventing the illegal flow of gold from Africa. While the UAE and Swiss authorities have claimed to take measures to combat gold smuggling, the complexity of global supply chains continues to pose challenges in tracking illicit flows of precious metals.
Recommendations for Change
Among its recommendations, the report called for African states to formalize artisanal and small-scale mining operations and enhance border controls to prevent illegal exports. It also urged non-African states to disclose the origins of imported gold and collaborate with authorities to identify and stop illicit gold flows, emphasizing the need for a coordinated international effort to combat the illegal gold trade.
