Sudan’s Gold Industry Struggles Amid Conflict and Trade Disruptions. Khartoum, Sudan — Sudan’s gold industry, a crucial source of foreign currency, is facing unprecedented challenges due to ongoing conflict, infrastructure damage, and collapsing trade ties. Despite global gold prices reaching record highs, Sudanese gold traders are missing out on the potential profits.
The country, one of Africa’s leading gold producers and exporters, has seen its vital gold industry suffer severe setbacks. “
The current market is incredibly difficult. It’s a heavy blow to the gold sector, “Mohammed Al-Sawakni, head of the Gold Industry Association in Sudan’s Red Sea State, told IMNEWS.
Gold mining in Sudan is largely traditional, and the outbreak of conflict has led to a sharp decline in output.
Insecurity has also caused a portion of the country’s gold to be smuggled out through illegal channels.
The disruption in gold processing and trade has further compounded the issue.
Shortages of raw materials have led some refineries to cut back or shut down, and small workshops and retail traders are struggling to stay afloat.
The visible drop in gold trade volume has narrowed profit margins for traders. Nearly three years of civil war have crippled production and exports.
In May, Khartoum cut ties with the United Arab Emirates, accusing the Gulf State of supporting the paramilitary Rapid Support Forces, who are vying with the Sudanese armed forces for control of the country. “
The UAE is one of the Middle East’s most important gold markets and trading centers, “says economist Ahmed Omar Khojali. “It won’t be easy for Sudan to find alternative markets.”.
In response to the mounting challenges across the gold sector, Sudan’s government is intensifying efforts to combat illegal mining and smuggling, while also seeking to strengthen regulation of gold sales and export channels. Authorities are moving forward with plans to establish an international gold exchange in the capital, Khartoum, and launch a global online trading platform, aiming to streamline gold circulation and expand export avenues amid ongoing turmoil. Further details are expected as the government seeks to stabilize the gold industry and mitigate the impact of the ongoing challenges.
