Annually, billions of dollars worth of African gold bypass legal channels, predominantly heading to Dubai before subsequent re-exportation globally, according to a recent Swissaid report. This extensive study spans data from 2012 to 2022, revealing that annually, 321-474 tonnes of primarily artisanally mined gold go unrecorded, representing an estimated $24-$35 billion in value.
Africa, as the premier continent for gold production, saw Ghana, South Africa, Mali, and Burkina Faso leading in 2022. Yet, this wealth generates complex challenges. Swissaid’s findings indicate that smuggling activities have more than doubled over the last decade. The NGO delineates gold’s multifaceted impact: providing essential income for millions of artisanal miners, serving as a vital government revenue stream, financing armed conflicts, and contributing to significant human rights abuses and environmental damage.
Dubai emerges as a critical node in this clandestine network, acting as the primary international conduit for African gold, which is predominantly dispatched to Switzerland and India subsequently. The report highlights that in 2022, approximately 66.5 percent of gold imported into the UAE from Africa was smuggled, transported by air in personal luggage or cargo holds, on both scheduled and private flights.
Once in Dubai, a global center with extensive gold refineries and a bustling market of precious metal and gemstone traders, the smuggled gold is re-exported, primarily to Switzerland. Intriguingly, Swiss law complicates efforts to trace the origin of gold as it designates the country of last processing as the source, thereby obscuring its African origins once it reaches Swiss territory.
This detailed analysis, leveraging data from 54 African countries, underscores the vast economic disparities and exploitative practices prevalent within the global gold market. The persistent smuggling of gold underscores the urgent need for more stringent regulations and enhanced transparency within international gold trade practices.
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