Africa’s Gold Smuggling Crisis: Billions in Revenue Lost as Countries Tighten Controls

Africa’s gold wealth is generating billions of dollars in trade, but much of the continent’s precious metal is moving through unofficial channels, depriving governments of revenue and strengthening illicit trading networks.

According to the Global Initiative Against Transnational Organized Crime (GI-TOC), an estimated 405 tonnes of gold exported from Africa to the United Arab Emirates in 2022 — representing 66.5% of the total — may have been smuggled. The figures highlight the scale of the challenge facing African governments seeking to bring gold production and trade under official control.

The issue was examined in a recent edition of Business Africa, which explored illegal gold mining, cross-border smuggling and efforts by several countries to improve oversight of the sector.

Cameroon loses billions to gold smuggling

Cameroon is facing significant losses as gold production bypasses formal trading channels. According to the country’s national mining company, 44 tonnes of gold were delivered to Dubai from Cameroon between 2021 and 2025, while only 148 kilograms were officially declared as exports.

The disparity highlights the difficulty of tracking gold flows and collecting taxes and royalties. Cameroon’s challenge is to strengthen monitoring, improve traceability and ensure more of its mineral wealth generates public revenue.

Côte d’Ivoire strengthens gold trade regulation

Côte d’Ivoire has expanded its gold industry considerably, with official production increasing from 13 tonnes in 2012 to 51 tonnes in 2023. However, illegal mining continues in several regions, contributing to environmental damage despite penalties of up to 20 years in prison.

The government has established the Ivorian Precious Metals Company to help regulate the gold supply chain and improve oversight of trading. The initiative is intended to bring more gold into formal markets and strengthen the country’s control over its mineral resources.

Burkina Faso invests in domestic gold refining

Burkina Faso is also seeking greater control over its gold industry. The West African producer has brought its first gold refinery into operation in the capital, Ouagadougou, as part of efforts to expand domestic processing.

The government has introduced a new mining code and established two companies responsible for gold trading and sector oversight. These measures are aimed at strengthening regulation and increasing national participation in the gold value chain.

A continent-wide challenge

Gold smuggling remains a complex problem for African producers. When gold is traded outside official channels, governments can lose tax revenue and royalties, while the true scale of production and exports becomes harder to establish.

Strengthening traceability, improving enforcement and developing domestic refining and formal trading systems could help countries capture more value from their resources. However, effective oversight will be essential if these measures are to reduce illicit trade and ensure that Africa’s gold wealth contributes more directly to economic development.