Africa, which has a global level of gold production, could transform this wealth into a significant engine of development. However, each year, between 321 and 474 tonnes escape official control, fueling a parallel economy estimated at between USD 24 and 35 billion.
Positioning Gold at the Center of Sustainable Trade
In December 2024, the World Gold Council released a worrying report on illegal gold flows from Africa. The United Arab Emirates, the nerve center of the gold trade, is stepping up efforts to purify the supply chain.
These initiatives conceal a major challenge: positioning gold at the center of sustainable trade, without harming the continent’s economic dynamics. Most of this gold comes from artisanal and small-scale mining (ASM).
However, the lack of appropriate regulations gives carte blanche to smuggling networks and intermediaries. In conflict zones such as the Sahel and the DRC, gold finances armed factions and criminal networks, making its traceability both essential and difficult.
The United Arab Emirates mobilizes blockchain
The integration of blockchain to ensure unalterable traceability of the precious metal represents a significant advancement. This technology offers the ability to trace each ingot from its extraction to its release to market. This therefore ensures authenticity and reduces the risks of fraud and money laundering.
The Dubai Multi Commodities Centre (DMCC) is at the forefront of implementing this solution, particularly by establishing a secure digital ledger where each transaction is transparently recorded.
Unlike traditional traceability systems, which are often based on certifications susceptible to counterfeiting, blockchain guarantees immediate and definitive control of gold transactions.
Mauritania: A Regulatory Model in the Sahel
The Emirates are not limited to implementing internal reforms. Given the international nature of gold trafficking, they have strengthened their collaboration globally. In February 2024, a partnership was established with Tracfin, the French financial intelligence agency, with the aim of exchanging information on suspicious financial movements and closely monitoring transactions related to the illicit gold trade.
In a Sahelian context where the gold trade is generally linked to increased insecurity, Mauritania stands out as an exception. Unlike its neighboring countries, where artisanal gold mining is practiced outside established laws, Nouakchott has established a formalized framework that allows for better regulation of mining.
A global challenge requiring structural reforms
While these efforts demonstrate a significant awareness, several challenges still remain. Establishing a comprehensive traceability system relies not only on trading sites, but also on producing countries, whose regulations remain inadequate.
At the same time, the demand for increased ethics and consumers play a crucial role in the shift toward a more responsible market. Promoting certified projects and fostering transparency in the gold sector are actions that can be implemented to limit the impact of the informal economy.
The challenge is twofold: preserving the economic potential of African gold while eradicating the illicit practices that hamper its profits. The future of the sector will depend on the ability of states to structure their markets while leveraging new technologies to ensure lasting transparency.
