Monday, June 24, 2024

A new report reveals that Africa loses tens of billions of dollars in gold through illegal flows every year.

Report Reveals Billions in African Gold Smuggled to UAE

Billions of dollars in gold are being smuggled out of Africa each year, with the United Arab Emirates serving as a major destination for the illicit trade, according to a recent report. The report, published by Swissaid, revealed that over $30 billion worth of gold, amounting to more than 435 metric tons, left the continent in 2022 alone.

The authors of the report emphasized the need for greater transparency in the gold trade to improve the living and working conditions of local populations and artisanal miners across Africa. In particular, they called on industry players to make gold supplies traceable and supply chains more responsible.

The report highlighted that a significant portion of gold produced in Africa goes unreported, with Ghana, Mali, and South Africa emerging as the top gold-producing countries on the continent. The UAE was identified as the primary destination for smuggled African gold, with a staggering 405 metric tons of undeclared gold ending up there in 2022 alone.

Switzerland was also noted as a major buyer of African gold, importing 21 metric tons of undeclared gold in 2022. The report suggested that the actual figures could be even higher if gold imported through third countries was taken into account.

In response to the report, the UAE government asserted that it has taken steps to address concerns around gold smuggling and ensure transparency in the gold market. Similarly, the Swiss government acknowledged the challenges in identifying the origins of gold and expressed commitment to improving traceability and transparency in commodity flows.

The report concluded with recommendations for African countries to formalize artisanal and small-scale mining practices and strengthen border controls, while urging non-African countries to publish the origins and dispatch destinations of imported gold. The goal is to combat illicit gold flows and promote ethical practices in the industry.

Overall, the report sheds light on the magnitude of gold smuggling out of Africa and underscores the importance of international collaboration to address this issue.

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