Gold smuggling out of Africa, mainly to the United Arab Emirates, has surged over the last decade, with hundreds of tonnes of gold worth tens of billions of dollars illegally leaving the continent every year, according to a report published on Thursday.
Analysis by Swissaid, an organisation that focuses on development aid and advocacy, found that a total of 435 tonnes of gold, mostly mined by small-scale miners and worth more than US$30 billion, was smuggled out of Africa in 2022.
Swissaid said the UAE was the main destination for Africa’s smuggled gold and took in 405 tonnes in 2022. Over the previous decade, UAE accepted more than 2,500 tonnes of smuggled gold with a total value of over US$115 billion, the organisation said.
Role of the United Arab Emirates
The report highlighted that Dubai, in the United Arab Emirates, plays a significant role as an international hub for trade in African gold, facilitating its distribution to countries like Switzerland.
Concerns and Responses
The scale of illegal gold flow underscores the vast parallel illicit economy potentially prone to issues like money laundering and terrorism financing, apart from loss in tax revenues.
Artisanal Mining and the Gold Trade
With the surge in gold prices, artisanal and small-scale mining in Africa has increased significantly, contributing to a large portion of unregulated gold production.
The majority of gold imported into the UAE annually comes from informal artisanal and small-scale mining, supporting millions of workers but raising concerns regarding its impact on local communities and the environment.
Regulatory Concerns and Impact
Swissaid’s analysis pointed out discrepancies in gold trade data, particularly regarding African gold exported to the UAE. The report also emphasized the need for stricter regulations and enforcement in tackling gold smuggling.
