South Sudan: Inside Shadowy 5 Tonnes Gold Trade

Approximately 5 tonnes of gold is being produced and smuggled out of South Sudan annually through Uganda and Kenya destined to the United Arab Emirates according to a study released by the Swiss organization, SWISSAID.

The African Gold Report: South Sudan exposes a vast, unregulated artisanal mining sector operating in the shadows, generating this illicit output without contributing a single dollar to national revenues. All production stems from informal artisanal and small-scale mining (ASM) in remote areas of Central and Eastern Equatoria states, where tens of thousands of miners use rudimentary tools like picks, shovels, and pans to extract gold from riverbeds and shallow pits.

SWISSAID’s estimate of 5 tonnes—equivalent to a medium-sized African gold producer—is derived from cross-verified data including IMF and World Bank proxies, smuggler interviews, and regional trade patterns. This “ghost gold” evades South Sudan’s 2012 Mining Act, which requires licensing and royalties, due to weak enforcement, overlapping authorities, and rampant corruption. Official export declarations? Zero. The entire yield disappears into black-market channels.

“All the gold extracted in South Sudan is eventually exported outside formal channels. Smugglers, many of whom are reportedly foreigners, benefit from weak law enforcement and the complicity of some corrupt representatives of state authorities,” the report says.

Adding: “There are indications that national and foreign armed groups are also involved in this traffic, which points to the use of South Sudanese gold for conflict financing.”

Miners toil in hazardous conditions, exposed to violence from armed groups controlling key sites. Factions like the SPLA-IO and NAS dominate operations, bartering gold for weapons, cash, or supplies. Buyers—often foreign traders from China and the Middle East—pay miners in depreciated South Sudanese pounds or goods, offering rates far below global spot prices.

Gold reportedly travels by motorcycle and truck through porous borders into Uganda and Kenya, then by air from Entebbe or Nairobi to Dubai’s refineries. Juba’s airport serves as a direct hub for high-value consignments. The UAE, a global gold laundering epicenter, absorbs the bulk: its imports from South Sudan spiked to $27 million in 2023, much of it undocumented.

The economic hemorrhage is profound. In 2022, the shadow trade’s street value hit $270 million, per smuggled volumes—funds that could stabilize Juba’s oil-dependent budget amid famine and floods. Instead, it perpetuates conflict: armed groups rake in millions, undermining peace accords. Miners endure exploitation, with child labor and health risks from dust and contaminated water rampant, though mercury use remains minimal.

South Sudan also transit-smuggles gold from Sudan’s civil war, with Rapid Support Forces routing RSF gold via Ugandan security firms. A February 2025 case highlighted the laxity: UAE trader Dr. Abdullah Alshabani allegedly exported 3.3 kilos without a required “No-Objection Letter.”

SWISSAID calls for urgent reforms: formalize ASM through cooperatives, deploy traceability tech like blockchain, and forge bilateral pacts with neighbors and the UAE. A 2024 South Africa deal with South Sudan promises $65 million for geological surveys and training but it’s yet to take off.

Source: https://chimpreports.com/south-sudan-inside-shadowy-5-tonnes-gold-trade/