DAKAR, SENEGAL — A recent report highlights a significant issue of gold smuggling out of Africa, revealing that tens of billions of dollars worth of gold are illegally exported each year, primarily to the United Arab Emirates (UAE). This gold is refined and sold globally, posing severe challenges to transparency and ethical sourcing in the gold industry.
In 2022 alone, over $30 billion worth of gold, or more than 435 metric tons, was illicitly exported from Africa, according to a report by Swissaid, a Swiss aid and development organization. The primary destinations for this smuggled gold were the UAE, Turkey, and Switzerland.
The report by Swissaid provides a detailed analysis of the gold smuggling issue, indicating that between 32% and 41% of Africa’s gold production went undeclared in 2022. Ghana emerged as the largest gold producer on the continent, followed by Mali and South Africa. The report estimates that the UAE received about 405 metric tons of undeclared gold from Africa in 2022 alone. Over the decade from 2012 to 2022, this figure reached approximately 2,569 metric tons, valued at around $115 billion.
The gap between the UAE’s recorded gold imports and the reported exports from African countries has widened significantly, suggesting an increase in smuggling activities. For instance, the discrepancy grew from 234 metric tons in 2020 to 405 metric tons in 2022.
Switzerland, another major destination for African gold, imported about 21 metric tons of undeclared gold in 2022. The actual amount could be much higher, considering gold that is imported through third countries. Once refined, it becomes nearly impossible to trace the gold back to its original source.
The United Nations Commodity Trade Statistics Database highlights Switzerland as the main buyer of gold from the UAE, emphasizing the difficulties in verifying the origins of refined gold. “Sourcing gold from the UAE is notoriously risky,” the report states, underscoring the complexities in ensuring ethical gold sourcing.
The UAE government asserts that it has implemented significant measures to address gold smuggling and the associated risks. An official from the UAE government’s media office emphasized the country’s commitment to combating gold smuggling and ensuring transparency and accountability within its gold and precious metals sector.
Similarly, the Swiss government has acknowledged the challenges in identifying the origins of gold and has introduced measures to prevent illegal gold flows. Fabian Maienfisch, a spokesperson for Switzerland’s State Secretariat for Economic Affairs, reiterated the country’s commitment to improving traceability, transparency, and control quality.
The illegal export of gold from Africa to countries like the UAE, Turkey, and Switzerland represents a massive loss of revenue for African nations and undermines efforts to establish ethical and transparent supply chains. The recommendations provided by Swissaid aim to address these issues and improve the living and working conditions of local populations and artisanal miners in Africa. However, significant challenges remain in ensuring that gold sourced from Africa meets international standards for ethical trade.
This report serves as a call to action for both African and non-African states to take decisive steps in curbing gold smuggling and promoting responsible mining practices. As the global demand for gold continues to grow, addressing these issues is crucial for sustainable and ethical economic development in Africa.
Source: The data and insights for this article are derived from the Swissaid report and statements from officials in the UAE and Switzerland.
