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Sudan Loses Billions as Gold Smuggling Fuels War Economy, Finance Minister Says

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KHARTOUM, Sudan — Sudan has lost billions of dollars in revenue and foreign exchange reserves after more than 55 tonnes of gold were smuggled out of the country through informal channels between 2023 and 2025, deepening the country’s economic crisis and fuelling a war-driven shadow economy.

Sudan’s Minister of Finance and Economic Planning, Jibril Ibrahim Mohammed, said the gold disappeared outside official export systems despite a sharp increase in production during the same period.

“While production surged to a record 70.15 tonnes between 2023 and 2025, official government channels recorded only a small fraction of that as exports, revealing a massive leak in the national economy,” Jibril said.

According to the minister, only 20 tonnes of gold were exported through formal channels in 2025, leaving the bulk of production unaccounted for and beyond state control.

Artisanal mining dominates sector

The losses highlight the government’s struggle to regulate Sudan’s most valuable resource amid ongoing conflict. Officials say artisanal mining and parallel markets now control more than 80 per cent of gold production, effectively sidelining the state.

“Artisanal mining, which accounts for 80–90pc of production, remains largely outside government control, allowing parallel markets to thrive,” Jibril said.

The situation has been worsened by the closure of the national gold refinery and the withdrawal of formal mining companies following the outbreak of war, weakening the state’s capacity to regulate exports or collect revenue.

War fuels shadow networks

A report by the Sudan Tribune notes that the Sudanese Mineral Resources Company has experienced extreme volatility since the conflict erupted.

Production fell sharply to 6.4 tonnes in 2023 when fighting began, before rebounding to record levels last year. However, only 12.5 tonnes of that output entered the public treasury as official exports.

“Smuggling networks that existed before the war have significantly expanded their operations amid the current instability,” the report said.

As a result, more than 80pc of Sudan’s gold production has been smuggled abroad since 2023, depriving the state of critical income at a time of severe fiscal strain.

Regional routes and global markets

Neighbouring countries, including Egypt, South Sudan, Chad, and Ethiopia, have reportedly become transit hubs for Sudanese gold, where it is relabelled or absorbed into local economies before reaching international markets.

A Swiss aid report published last year documented a 70pc increase in informal gold flows to the United Arab Emirates in 2024 alone, underscoring the scale of the problem.

The report found that Sudanese gold is often exported without taxation or traceability, effectively turning the precious metal into a key source of financing for the continuation of the armed conflict.

With gold representing Sudan’s most significant export potential, the loss of revenue has further weakened the state’s ability to provide services, stabilise its currency, and negotiate economic recovery.

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