(JUBA) – A new study by the Swiss organisation SWISSAID says South Sudan is losing large amounts of revenue through an informal and illegal gold trade that is believed to move several tonnes of gold out of the country every year. The report says the industry is completely dominated by artisanal miners who work without regulation, formal support, or safety systems.
The report, known as the African Gold Report for South Sudan, says weak governance, the absence of proper data, and limited control across mining areas mean the country does not know how much gold is being produced. SWISSAID estimates that around five tonnes of gold may be extracted and smuggled out each year. Based on global prices, this amount is valued at several hundred million dollars.
The organisation says this level of production places South Sudan in the middle range of African gold producers. It adds that the entire production comes from artisanal and small scale mining activities. These operations often involve armed groups, basic tools, no machines, and risks to the health and safety of miners. Many miners face exploitation and poor income conditions.
The study notes that the civil war, which officially ended in 2018, created years of hardship and limited public investment. Roads remain few and unreliable, which has kept industrial mining companies away. As a result, the country has been left with informal mining practices and no large commercial activity despite its mineral potential.
SWISSAID also says that all gold produced in South Sudan leaves the country through informal routes. It reports that smugglers, including many foreign nationals, take advantage of weak border controls and the support of corrupt officials. The report says both national and foreign armed groups are involved, raising concerns that gold from South Sudan may be used to support conflict.
Gold Production and Estimated Value
| Estimated Annual Gold Output | Approximate Value in USD | Equivalent in SSP |
|---|---|---|
| 5 tonnes | about $300 million | about SSP 2.13 trillion |
Miners in South Sudan commonly use basic tools and do not work with chemicals like mercury. Although this reduces environmental damage, it increases direct human risk. The report says the lack of mechanisation and formal support leaves miners exposed to danger and at the mercy of middlemen who buy gold at low prices.
The study also says that the weak position of the South Sudanese pound, combined with official exchange rates that are far below market levels, pushes miners to sell gold through informal networks. The unofficial market offers better returns, making it more attractive than government purchase programmes.
SWISSAID says armed groups, including state and non state actors, continue to interfere with mining sites. They often demand part of the gold output or require miners to pay informal taxes. This practice further reduces the profits of miners and strengthens illegal networks.
The report says South Sudan has also become a transit point for gold from neighbouring conflict areas. Since the Sudan conflict began in April 2023, gold from Sudan has entered South Sudan and later flown to the United Arab Emirates. Authorities in Uganda and Kenya have also been linked to the wider movement of gold in the region.
As South Sudan does not report official gold exports, SWISSAID relied on data from other countries to trace the flow of gold. Records show that the United Arab Emirates declared imports of $20 million from South Sudan in 2022 and $27 million in 2023. Uganda has also recorded imports from South Sudan. The report says the actual amounts are likely higher, since destinations such as Kenya and China do not appear in records despite being known receivers.
The report concludes that smuggling is supported by weak border controls, limited policing, and the involvement of corrupt public officials.
The study says South Sudan has a legal framework under the 2012 Mining Act, but enforcement has been very limited. Efforts by the government to buy gold at fixed prices have failed and have sometimes caused higher prices on the informal market. SWISSAID adds that poor infrastructure and a political environment seen as corrupt have kept major global investors away.
The Ministry of Mining did not respond to requests for comment on the findings.
The full report is available from African Gold Report platforms.
| Summary | |
|---|---|
| Estimated annual gold output | About 5 tonnes worth around $300 million (about SSP 2.13 trillion) |
| Nature of production | Entirely artisanal and informal, with no industrial mining |
| Main issue | All gold believed to be smuggled out of the country |
| Key actors involved | Armed groups, middlemen, some corrupt officials, foreign smugglers |
| Main destinations | UAE and Uganda, with possible flows to Kenya and China |
| Drivers of smuggling | Weak law enforcement, poor infrastructure, low official exchange rates |
| Economic impact | Major loss of revenue for South Sudan and increased black market activity |
| Government position | No effective regulation. Attempts to buy gold at fixed prices have failed |
| Additional concern | South Sudan becoming a transit route for gold from Sudan due to conflict |
