Report: Over USD 30 Billion in Gold Illegally Exported from Africa Each Year

Billions of dollars worth of gold are being smuggled out of Africa annually, with a significant portion finding its way to the United Arab Emirates (UAE), a recent report reveals. Swissaid, a Switzerland-based aid and development organization, published findings indicating that over USD 30 billion, or more than 435 metric tons of gold, was illicitly transported out of the continent in 2022 alone. The UAE, Turkiye, and Switzerland are pinpointed as the primary destinations for this smuggled gold.

The report aims to shed light on the opaque trade practices surrounding African gold, urging industry stakeholders to enhance the traceability of gold supplies and improve supply chain accountability. "We hope that this will improve the living conditions of local populations and the working conditions of artisanal miners throughout Africa," stated Yvan Schulz, a contributing author to the report. The investigation uncovered that between 32% and 41% of gold produced in Africa goes unreported.

Ghana emerged as Africa's top gold producer last year, followed by Mali and South Africa. However, the UAE stands out as the predominant recipient of undeclared African gold, with approximately 405 metric tonnes not accounted for in 2022. Over a decade, from 2012 to 2022, an estimated 2,569 metric tonnes of gold—valued at around USD 115 billion—were smuggled into the UAE.

The disparity between UAE's gold imports and exports from African nations has been expanding, suggesting an uptick in smuggling activities over the past ten years. For instance, this gap surged from 234 metric tonnes in 2020 to 405 in 2022. Switzerland also plays a significant role as a buyer of undeclared African gold, importing around 21 metric tons in 2022.

Once refined, tracing gold back to its origin becomes nearly impossible, complicating efforts to combat smuggling. The United Nations Commodity Trade Statistics Database highlights Switzerland as a major purchaser of UAE gold. The sourcing risks associated with UAE gold are well-documented, given the challenges in verifying its origins.

In response to these concerns, an official from the UAE's government media office emphasized the country's commitment to curbing gold smuggling and enhancing sector transparency and accountability. Similarly, Switzerland acknowledges the difficulties in identifying gold origins and has implemented measures aimed at preventing illegal flows.

"Switzerland is and stays committed to improve the traceability of commodity flows, the transparency of statistics and the quality of controls," remarked Fabian Maienfisch of Switzerland's State Secretariat for Economic Affairs.

The report also advocates for African states to formalize artisanal and small-scale mining operations and strengthen border controls. Additionally, it calls on non-African countries to disclose the origins and dispatch countries of imported gold and collaborate with authorities to pinpoint illicit flows.