A new report by SWISSAID has revealed that Zimbabwe is one of the top five African countries smuggling gold to the United Arab Emirates (UAE). The report, titled "On the Trail of African Gold: Quantifying Production and Trade to Combat Illicit Flows," examines the prominent role gold plays on the African continent, both as a source of income and as a means of financing armed groups.
According to the report, in 2022 an estimated 78,000 kg of gold produced by artisanal and small-scale miners (ASM) in Africa went undeclared, compared to only 24,000 kg that was officially reported. Zimbabwe ranked second among the 41 African countries surveyed in terms of undeclared ASM gold production, behind only Mali.
Within the SADC region, Zimbabwe led the pack, with an estimated 25,000 kg of undeclared gold production, followed by South Africa.
The UAE emerged as the largest importer of African gold in 2022, receiving 47% (609,031 kg) of the continent's total gold exports. This was significantly higher than the next biggest importers, Switzerland (21%) and India (12%).
However, the report suggests the UAE may be under-reporting its imports, as Zimbabwe reported exporting around 350,000 kg to the UAE, while the UAE only declared receiving about 350,000 kg from Zimbabwe.
The report highlights that Africa's ASM gold production actually exceeds its industrial gold production, demonstrating the enormous scale of the informal gold sector on the continent. Several African countries, including Zimbabwe, have more ASM gold production than industrial production.
To combat the rampant gold smuggling, the authorities of various African countries have signed agreements with their Emirati counterparts. However, the report indicates that a substantial amount of gold from conflict-affected and high-risk areas in Africa, including Zimbabwe, is still finding its way into the UAE's imports, either directly or through neighbouring countries.
