An aid and development group based in Switzerland, Swissaid, published a report revealing that over $30 billion worth of gold, equivalent to more than 435 metric tons, is smuggled out of Africa each year. The main destinations for African gold were found to be the United Arab Emirates, Turkey, and Switzerland. The aim of the report is to bring transparency to the trade in African gold and put pressure on industry players to make gold supplies traceable and supply chains more responsible. This effort is expected to improve the living conditions of local populations and the working conditions of artisanal miners across Africa.
The report highlighted that between 32% and 41% of gold produced in Africa goes undeclared. In 2022, Ghana was the largest gold producer in Africa, followed by Mali and South Africa. The UAE emerged as the top destination for smuggled gold from Africa, with approximately 405 metric tons of undeclared output ending up there. Over a 10-year period from 2012-2022, 2,569 metric tons of gold, valued at around $115 billion, were smuggled to the UAE from African countries. The gap between UAE imports and exports from African countries has widened over the years, indicating an increase in gold smuggling from Africa.
Switzerland, another major buyer of African gold, imported around 21 metric tons of undeclared gold from Africa in 2022. The report noted that the actual figure could be higher if gold imported through third countries was considered. However, once gold is refined, it becomes difficult to trace its flow to its final destination. The United Nations Commodity Trade Statistics Database revealed that Switzerland is the main buyer of gold from the UAE. The report pointed out the challenges in identifying the origins of refined gold sourced from the UAE due to the opaque nature of the trade process.
In response to concerns raised by the report, a UAE government official stated that the country has taken significant steps to address issues related to gold smuggling and ensure transparency and accountability within the gold sector. The UAE remains committed to combating gold smuggling and upholding high standards in the industry. The Swiss government also acknowledged the challenges in tracing the origins of gold and highlighted measures taken to prevent illegal flows. The report recommended African states formalize artisanal and small-scale mining, strengthen border controls, and urged non-African states to disclose the origin and dispatch countries of imported gold.
In conclusion, the report published by Swissaid sheds light on the significant issue of gold smuggling from Africa, with billions of dollars worth of gold being illicitly exported each year. The focus on the United Arab Emirates as a major destination for smuggled gold highlights the need for improved traceability and responsible practices in the industry. The recommendations put forward aim to enhance the transparency of gold supply chains, address illegal flows, and ultimately benefit local populations and miners in Africa. The findings call for collaborative efforts from both African and non-African states to combat illicit gold trade and promote ethical practices in the gold industry.
