The United Arab Emirates has been the main destination for tens of billions of dollars worth of gold smuggled out of Africa each year for the last decade, a new study published by Swissaid claims.
The report by Swissaid has found that 435 metric tons, worth more than $30 billion and mostly mined by small-scale or artisanal miners (ASM), was smuggled out of Africa in 2022. Some 405 metric tons of that gold went to the UAE.India and Switzerland were found to be the two other major foreign importers of African gold.Total production in Africa reached between 991 tonnes and 1,144 tonnes in 2022. This represents between a quarter and a third of global production of mined gold in 2022.“Each year, between 321 tonnes and 474 tonnes of gold produced through artisanal and small-scale mining (ASM) are not declared in Africa (corresponding to a value of between US$ 23.7 billion and US$ 35 billion at the price of gold on 1 May 2024).”
“In 2022, this represented between 72% and 80% of total ASM gold production or between 32% and 41% of total gold production (artisanal or small-scale and industrial or semi industrial) on the African continent,” reads the report
Forty-one of the 54 African countries have an estimated ASM production of at least 100 kilograms per year and 15 of these countries produce ASM gold, but do not officially report any production.
In 2022, 66.5% (405 tonnes) of the product imported into the UAE from Africa was smuggled out of African countries. Between 2012 and 2022, 2,569 tonnes of African gold imported into the UAE was not declared for export in African countries. At the average price of gold over these eleven years, this corresponds to a total value of US$ 115.3 billion.
From Dubai, gold smuggled out of Africa makes its way to European countries including Switzerland, SwissAid says. Once it enters the international market and is declared as imported in a country like the UAE, it then can be legally exported to other countries.
Since 2009, the price has doubled, leading to a boom in artisanal mining, much of it illegal. The report estimates that Africa’s artisanal miners produced between 443 and 596 metric tons of gold in 2022, 70% of it undeclared. Industrial miners on the continent are estimated to produce around 500 metric tons a year.
The group says that revenue from smuggled African gold continues to fuel conflict and finance criminal and terrorist networks. This undermines democracy and facilitates money laundering, it says.
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