Tens of Billions Of Dollars In Gold Flows Illegally Out Of Africa Each Year, A New Report Says..s

Billons of dollars in gold is smuggled out of Africa each year and most of it ends up in the United Arab Emirates, where it is refined and sold to customers around the world, according to a report published Thursday.

Over $30 billion worth of gold, or more than 435 metric tons, was smuggled out of the continent in 2022, according to the report published by Swissaid, an aid and development group based in Switzerland. The main destinations for African gold were the United Arab Emirates, Turkey and Switzerland.

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.

“We hope that this will improve the living conditions of local populations and the working conditions of artisanal miners throughout Africa,” Yvan Schulz, one of the report’s authors, told The Associated Press.

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, it said.

The UAE was by far the main destination for smuggled gold, the report said, with some 405 metric tons of undeclared output from Africa ending up there. During a 10-year period between 2012-2022, that amount summed up to 2,569 metric tons of gold, worth around $115 billion. The report said the gap between UAE imports and exports from African countries has widened over the years, meaning that the amount of gold smuggled out of Africa appears to have increased over the past decade. For example, it widened from 234 metric tons in 2020 to 405 in 2022.

Switzerland, another main buyer of African gold, imported some 21 metric tons of undeclared gold from Africa in 2022, the report said. The real figure could be much higher if African gold imported through third countries was taken into consideration, the report said, but once gold is refined, it is virtually impossible to follow its flow to it final destination.

The United Nations Commodity Trade Statistics Database, which contains detailed imports and exports statistics, shows that Switzerland is the main buyer of gold from the UAE. “Sourcing gold from the UAE is notoriously risky,” the report said, describing the difficulty in ascertaining the origins of the refined gold.

A official within the UAE government’s media office said the country has taken significant steps to address concerns around gold smuggling and the risks it poses. The continued growth of the UAE’s gold market reflected the confidence of the international community in its processes, the official said, responding on behalf of the country’s press office without providing further identification.

Source: AP