A significant portion of Africa’s gold, valued between $23.7 billion and $35 billion annually, is smuggled out of the continent and primarily exported to the United Arab Emirates (UAE) for processing, according to a report by SwissAid, a Bern-based nongovernmental organization.
SwissAid’s analysis, based on declared and undeclared gold imports over a decade ending in 2022, reveals that more than 435 tons of gold were illicitly moved out of Africa in 2022 alone. The illicit trade fuels conflicts, finances criminal and terrorist networks, undermines democratic processes, and facilitates money laundering, the report states.
The majority of this smuggled gold originates from twelve African countries, with Mali, Ghana, and Zimbabwe being the principal sources of the informal trade. An estimated $115.3 billion worth of gold entered the UAE from Africa between 2012 and 2022.
In response to these concerns, the UAE Ministry of Foreign Affairs stated via email that the country has taken “significant steps to address concerns around gold smuggling, recognizing the risks posed by such activities.” The ministry highlighted that suspicious activity reports related to the gold sector increased dramatically to 6,432 in 2023, up from 223 in 2021.
Additionally, the UAE has intensified inspections to detect smuggled gold, resulting in over 78 million dirhams ($21.2 million) in fines. The UAE Ministry of Economy emphasized that the country cannot be held accountable for the export records of other governments, asserting that the UAE uses sophisticated technologies and systems to track and verify gold trade data.
To combat money laundering in the gold sector, the UAE has implemented various measures, including the suspension of Emirates Gold DMCC’s accreditation last year. The refinery, one of the country’s largest, faced scrutiny due to its owners’ alleged connections to money laundering activities.
According to the SwissAid report, much of Africa’s illegally mined gold is funneled to Dubai through refineries in countries like Uganda and Rwanda, sometimes via private jets or in hand luggage with falsified documents. Dubai hosts at least 20 gold refineries and more than 7,000 traders in precious metals and stones. The report also notes that smuggled gold finds its way to other countries, including India and Switzerland.
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