By James Chatim

South Sudan loses at least five metric tonnes of gold annually in a smuggling racket through Uganda en route to the United Arab Emirates (UAE), a report has revealed.

The report, published by the international Non-Governmental Organization SWISSAID, says the activities of infiltration is carried out under concealment, largely escaping government control and oversight.

Titled “On the Trail of African Gold,” the SWISSAID report exposes the largely covert nature of South Sudan’s gold sector.

“The country has become synonymous with opacity, as it lacks official statistics and effective enforcement mechanisms over its artisanal and small-scale mining (ASM) operations,” the report states. 

“As a result, numerous informal miners operate outside the bounds of government control, contributing to a system built on smuggling and illegal transactions.”

The comprehensive study conducted between 2021 and 2024 covers gold production and trade across 54 African nations, positioning South Sudan as one of the countries with shaky data ASM in the continent. This vacuum has profound implications, the report says, allowing gold mined in South Sudan to be funneled into Uganda without regulatory oversight or formal export declarations, ultimately reaching the UAE where the gold is often processed and traded.

The report contextualizes the smuggling within the larger framework of African gold trafficking, highlighting that in 2022 alone, a staggering $30.7 billion worth of gold was reported smuggled from the continent. However, the report also disclosed that there is little to no data regarding gold production, further masking the extensive losses incurred by the country.

“South Sudan belongs to a group of countries where artisanal and small-scale gold mining operates entirely outside state control,” the report states.

The Undersecretary in the Ministry of Mining this month called for urgent crackdown on rampant gold smuggling at Juba International Airport.

Speaking to journalists during an inspection visit to Juba International Airport on Monday, June, 9, 2025, Matiok Santino Akuei, labelled the illicit smuggling of gold as a major challenge to the nation.

Economic cost of illicit gold mining

Late last month (May), Civil Society Coalition for Natural Resources (CSCNR) revealed that over $50 million generated annually from illicit gold mining in South Sudan’s Eastern Equatoria State, never reached the National Treasury.

The report, which exposed a hidden economy operating outside government control—and at great cost to local communities, focused on Budi, Kapoeta East, and Kapoeta South counties, and detailed how informal and illegal mining activities have flourished, depriving the state of vital revenue needed for development and public services.

“In one year alone, over $50 million was made from gold mining in just three counties,” said Boboya James Edmond, Secretary General of CSCNR. “None of this money was captured by the national budget. This economic leakage is robbing South Sudan of critical resources that could fuel development.”

Despite licensing efforts by the Ministry of Mining, the sector remains largely unregulated. Gold is extracted and sold through informal networks, often across porous borders.

The report also revealed that artisanal miners and foreign actors—from Somalia, Kenya, Ethiopia, and China—dominate the trade, creating a volatile and exploitative environment.