The Mystery of the Missing $2.3 Billion: How is gold funding Sudan’s war?

Gold proved to be one of the main sources of funding for the war in Sudan, for it constitutes a large part of the country’s economy, as Sudan produces huge quantities of the metal, and the country is considered one of the largest in Africa in terms of production.

Reports indicate that gold is extracted from (14) Sudanese states, and is particularly concentrated in the River Nile, Northern, and Red Sea states, in addition to other states affected by the conflict.

Despite the availability of large reserves of gold, the sector is heavily affected by chaos, corruption, and arbitrary actions, which further complicates the process of determining the actual size of production.

Gold Production

Eighty percent (80%) of gold production is carried out by traditional miners in high-risk environmental conditions, where they use toxic materials such as mercury and cyanide. Companies produce only (20%) of the total production.

The size of discovered gold is estimated at approximately (1,550) tons; however, a number of geologists question these numbers due to the lack of accurate data and scientific methodology.

The Mystery Behind Gold Revenues

The Sudanese Company for Mineral Resources announced an increase in gold production in (2024) to (65 tons), compared to (34.5 tons) in the year (2022), prompting a significant increase in production, however, revenues appear to be experiencing an inexplicable decline from ($2.02) billion in (2022) to ($1.6) billion in (2024).

Strangely enough, the value of (65 tons) of gold in the year (2024) should be around ($3.9) billion, according to global prices, but official data shows that the revenues were significantly lower, raising valid questions in regards to the monetary difference!?

The Lost Revenues: Corruption and Smuggling

Many believe that the difference between the announced -official- revenues of ($1.6 billion) and the actual value of ($3.9 billion) was lost to the pockets of the Sudanese Army and Military leaders who control the sector. This monetary difference is said to be used to purchase weapons and drones, which contribute to supporting the war effort.

Smuggling is a big part of the problem as well, with gold being smuggled to Egypt and other countries, in addition, experts estimate that (60%) of the gold is smuggled and consequently disappears from official records.

Adel Ibrahim, a geologist, confirmed that smuggling represents (60%) of total production, which reflects the extent of corruption plaguing the sector.

Gold and War

Gold is a major source of funding for the war in Sudan, as gold is sold to buy weapons and finance military operations, prolonging the conflict. This precious resource is being exploited in a destructive manner instead of being used to support development and stability in the country.

In Conclusion

Doubts regarding gold revenues remain the biggest mystery in Sudan, as revenues are supposed to be much higher than the announced estimates. Investigations indicate massive corruption in the mining sector, gold smuggling, and that this money is being directed towards financing the war rather than economic development throughout the country.