Last year, gold prices reached all-time highs, and according to some analysts, the precious metal may hit $3,000 per ounce by the end of 2025. Surprisingly, a rise in illicit gold mining has also been connected to the boom.
More than 435 metric tons of gold were smuggled out of Africa in 2022, according to unit raw materials experts’ studies.
Illegal gold mining and trade on the continent is a serious problem that is brought to light by the smuggling. Africa ranks among the world’s top producers of gold, with nations like Ghana, South Africa, Sudan, and Mali making substantial contributions to the total. But illicit mining and smuggling frequently avoid the legal system, costing governments money, degrading the environment, and igniting social unrest.
Porous borders, uncontrolled mining regions, and global networks that take advantage of lax enforcement of laws are the usual routes used for gold smuggling. In order to hide its source, smuggled gold frequently finds its way into markets in the Middle East, Asia, and Europe where it is mixed with legitimate supply chains.
In fact, Swissaid’s head of the raw materials unit, Marc Ummel said:
“At the current price of gold this corresponds to a value of more than $36 billion.”
All these tons of gold, valued at more than $30 billion were were illicitly exported from Africa, with the United Arab Emirates (UAE) receiving approximately 405 metric tons of this undeclared gold.
In response to these issues, the United States and the United Kingdom imposed sanctions targeting the illicit gold trade in December 2024, aiming to disrupt networks that finance unlawful activities, including Russia’s military actions in Ukraine.
In Ghana, small-scale illicit mining, or galamsey, supports livelihoods and gives the West African country’s economy an unofficial boost. Nevertheless, it is also connected to disease and environmental degradation.
Illegal Mining Is Affecting The Brains Of Students In Ghana
At least 87 illegal miners in South Africa lost their lives this week after becoming trapped in an abandoned gold mine southwest of Johannesburg.
The Galamsey problem is a burden on the people of Ghana. While some people are making huge sums of money by smuggling gold out of Africa, the majority are dealing with the serious difficulties that come with it.
Through these illicit mining operations, a number of African nations are somehow assisting foreign investors in obtaining the gold.
Ghana is now Contemplating a refined gold industry, as promised by President John Dramani Mahama, who was elected as the country’s new leader.
