A recent report by Swissaid, a development aid and advocacy organization, reveals that gold smuggling out of Africa, primarily to the United Arab Emirates (UAE), has skyrocketed over the past decade. Apexnewsgh reports
In 2022 alone, an estimated 435 tonnes of gold, worth over $30 billion, was illegally smuggled out of Africa, with the UAE being the main destination.
According to the report, the UAE has accepted over 2,500 tonnes of smuggled gold, valued at $115 billion, over the past decade. This massive flow of gold underscores the significant growth of small-scale, or artisanal, mining, which now involves millions of people and produces volumes of gold comparable to industrial mining.
Experts warn that this large-scale smuggling indicates a vast parallel illicit economy vulnerable to money laundering, terrorist finance, and sanctions evasion. The UAE’s role in gold laundering has been criticized, as large quantities of smuggled gold gain legal existence by transiting through the country.
Swissaid’s analysis identified 12 African countries involved in smuggling 20 tonnes or more of gold per year. The report also highlights discrepancies between declared exports and imports, which do not exist for other major gold-importing countries like Switzerland and India.
In response to accusations, a UAE Ministry of Economy spokesperson claimed that the country cannot be held accountable for other governments’ export records. However, critics argue that the UAE’s lack of effective regulation enforcement contributes to the problem.
The surge in gold smuggling is attributed to the doubling of gold prices since 2009, leading to an increase in artisanal mining. Swissaid estimates that artisanal and small-scale gold mining in African countries produced between 443 and 596 tonnes of gold in 2022, with over 70% not being declared.
The report emphasizes the need for more effective regulation and enforcement to combat gold smuggling and ensure that artisanal miners receive fair value for their extracted gold.
Source: Apexnewsgh.com
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