Sudan’s gold industry: opportunity amid geopolitical tension?
Tue July 23 2024
In 2022, gold exports, valued at more than $2bn (Sd$1.17trn), accounted for more than half of Sudan’s total exports. According to the World Gold Council, this placed Sudan as the world’s 16th-largest gold producer and the fourth-largest on the African continent for that year.
Gold has become increasingly important to Sudan’s economy since South Sudan gained independence in 2011. According to the Rift Valley Institute, the 75% reduction in Sudan’s oil exports following South Sudan’s secession led to the gold industry becoming an important source of foreign exchange, prompting non-traditional Sudanese companies to invest heavily in the industry.
The primary destinations for Sudanese gold exports are the United Arab Emirates (UAE) with $2.29bn in 2022, Italy ($18.7m), Egypt ($15.2m), and Turkey ($2.2m), according to the Observatory of Economic Complexity.
Officially, Sudan’s gold production has fluctuated over the years, from a low point of 50kg in 1991 to a peak of 107.3 tonnes (t) in 2017. In December 2022, gold production was reported at 41.8t, a decline from 49.7t the previous year.
However, the true value of gold leaving the country is estimated to be two to three-times higher than these official records. An estimated “50–80% of the gold is smuggled abroad… mainly through the UAE, which is the key area for refining gold within the broader region,” explains Ahmed Soliman, senior research fellow, Africa Programme, at Chatham House in a podcast recorded earlier this year.
The war between the Sudanese army and Rapid Support Forces (RSF) has been ongoing since mid-April of last year. Although gold exports have reportedly continued unaffected, the conflict and other geopolitical tensions have significantly influenced the gold industry in Sudan, shaping production, exports and the role of various stakeholders.
Source: https://www.mining-technology.com/