A new report reveals that billions of dollars worth of gold is illegally flowing out of Africa annually

The illicit trade of gold from Africa to the United Arab Emirates has been exposed in a recent report published by Swissaid, shedding light on the staggering amount of money involved in this underground market. According to the report, over $30 billion worth of gold, equivalent to more than 435 metric tons, was smuggled out of Africa in 2022 alone, with the UAE being the main destination for this illicit gold.

The report, aimed at increasing transparency in the gold trade and holding industry players accountable, revealed that between 32% and 41% of gold produced in Africa goes undeclared. Ghana, Mali, and South Africa were identified as the top gold producers on the continent in 2022, with Ghana leading the pack.

The UAE emerged as the primary hub for smuggled African gold, with a staggering 405 metric tons of undeclared gold making its way to the country in 2022. Over a 10-year period from 2012 to 2022, the total amount of smuggled gold to the UAE reached 2,569 metric tons, valued at around $115 billion. The report highlighted a concerning trend of increasing gold smuggling from Africa to the UAE, with the gap between imports and exports widening over the years.

Switzerland was also identified as a major buyer of African gold, importing 21 metric tons of undeclared gold from the continent in 2022. The report noted that the actual amount of African gold imported through third countries could be much higher, as the refined gold becomes virtually untraceable once it reaches its final destination.

In response to the report, a UAE government official emphasized the country’s efforts to combat gold smuggling and ensure transparency in the precious metals sector. The official stated that the UAE remains committed to upholding the highest standards of accountability and transparency in its gold market.

Switzerland, on the other hand, acknowledged the challenges in tracing the origins of gold and stated that measures have been implemented to prevent illegal flows of the precious metal. The Swiss government reiterated its commitment to improving the traceability of commodity flows and enhancing control measures to prevent illicit activities in the gold trade.

The report concluded with a series of recommendations for both African and non-African states, calling for formalization of artisanal and small-scale mining, reinforcement of border controls, and increased collaboration to identify and prevent illicit gold flows. The findings of the report underscore the urgent need for greater transparency and accountability in the global gold trade to protect the interests of African countries and their local populations.