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Nearly Four Tons of Gold Vanish from Guinea’s Central Bank, Fueling Concerns Over African Gold Smuggling

In a concerning development, nearly four tons of gold valued at $400 million have vanished after being dispatched from the Central Bank of the Republic of Guinea (BCRG) to Dubai, United Arab Emirates, for refining. The gold was transported by MSS Security, a prominent Asian security firm, which has been cooperating with investigators. The disappearance reportedly occurred after the shipment cleared Emirati customs, shifting the investigative focus toward senior officials within the BCRG.

This incident is not isolated; it follows the dismissal of BCRG’s former governor, Laounceny Kaba, by Guinea’s military junta leader, General Mamadou Doumbouya, in August. Kaba’s removal, along with his two vice-governors, Baïdy Aribot and Madjou Sow, was linked to their tenure during the administration of ousted President Alpha Condé, which faced allegations of corruption.

Guinea, rich in natural resources, relies heavily on its mining sector for economic development. However, the continent faces a significant challenge with gold smuggling. A report by Swissaid indicates that at least 435 tonnes of gold, worth approximately $30.7 billion, were illicitly exported from Africa in 2022. Notably, between 80% and 85% of this smuggled gold is channeled to the UAE, where it often enters legal markets. The UAE’s tax-free status and the high purity of its gold make it an attractive destination for investors, inadvertently facilitating the laundering of illicit gold.

The Swissaid report highlights that 12 African countries are involved in smuggling 20 tonnes or more of gold annually. This rampant smuggling undermines local economies, deprives governments of crucial revenue, and, in some cases, finances armed conflicts and terrorist activities.

Addressing this issue requires a concerted effort to enhance regulatory frameworks, improve enforcement mechanisms, and promote transparency within the gold trade. Without such measures, the economic and social challenges posed by gold smuggling in Africa are likely to persist.

For a visual representation of the countries most affected by gold smuggling, please refer to the chart below:

Data Source: Swissaid Report on Undeclared Gold Flows from Africa

This chart illustrates the scale of gold smuggling across various African nations, emphasizing the need for robust interventions to combat this illicit trade.

For a more in-depth understanding of the issue, you may find the following video informative:

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