South Sudan brims with natural resources and potential wealth, yet a significant portion of its wealth remains unaccounted for and is siphoned off via illicit channels. According to a report published by the international Non-Governmental Organisation SWISSAID, South Sudan loses at least five metric tonnes of gold annually, as it is funneled through Uganda en route to the United Arab Emirates (UAE). The report indicates that much of this activity occurs in secrecy, largely escaping government control and oversight.
Entitled “On the Trail of African Gold,” the SWISSAID report exposes the largely clandestine nature of South Sudan’s gold sector. The nation has become synonymous with opacity, as it lacks official statistics and effective enforcement mechanisms over its artisanal and small-scale mining (ASM) operations. 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 least transparent countries on the continent regarding ASM. This lack of transparency has profound implications, 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. To make matters more concerning, officials in Juba offer little to no data regarding gold production, further masking the extensive losses incurred by the young nation.
“South Sudan belongs to a group of countries where artisanal and small-scale gold mining operates entirely outside state control,” the report states, emphasizing the dire need for regulatory reform. With no institutional oversight, this environment creates prime conditions for smuggling networks to thrive, exacerbating the country’s economic challenges.
Numerous factors contribute to this illicit gold trade. A legacy of civil conflict continues to destabilize the nation, and as South Sudan grapples with economic turmoil, the income potential from its natural resources remains largely untapped. This is particularly concerning because revenues generated from gold mining could potentially fuel development initiatives and build a more resilient economy.
SWISSAID’s findings echo the conclusions of a prior study published in 2021 by the Global Initiative Against Transnational Organized Crime (GI-TOC). Titled “Tarnished Hope: Crime and Corruption in South Sudan’s Gold Sector,” this report made it clear that corrupt practices, insufficient government oversight, and the involvement of organized crime networks have all played significant roles in enabling illegal gold extraction and trade in the nation. The issue is further complicated by the potential involvement of political and military elites, thereby embedding corruption deeper into the system.
The GI-TOC report documented that as of 2020, the volume of gold exported to the UAE via Uganda exceeded 3,000 kilograms, yielding an impressive $110 million for South Sudan. However, experts contend that this figure is just a fraction of what the national gold mining industry could achieve with a structured regulatory framework in place.
Recent events underscore the ongoing challenges facing authorities in regulating gold exports. In February 2025, a businessman associated with the UAE allegedly smuggled 3.3 kilograms of gold out of South Sudan without proper governmental authority. According to Prudential Holdings Co. Ltd., a registered mining company in South Sudan, Dr. Abdullah Alshabani—the company’s partner—allegedly exported mineral-rich samples without adhering to the requisite legal structures established under the Mining Act of 2012.
In light of this situation, Mr. Abraham Salva Mathok, Prudential Holdings’ chairman, sent a letter to the Ministry of Mining on February 12, 2025, seeking clarification on whether any No-Objection Letter had been granted for the export in question. The Ministry’s response, delivered by the Director General of Minerals Development Mr. James Yousif Kunda, firmly stated that no such permit had been issued.
Despite attempts by South Sudan’s government to address these issues, gaps in regulation and enforcement persist, often resulting in a lack of accountability for illicit activities. The Ministry of Mining explicitly warned Prudential Holdings to obtain the alleged permit directly from Dr. Alshabani, emphasizing the necessity of compliance with Section 47(4) of the Mining Act, which mandates prior approval for exporting mineral samples.
In a broader regional context, South Sudan is part of an extensive East and Central African network wherein gold from conflict-affected countries such as the Democratic Republic of the Congo (DRC), the Central African Republic (CAR), and Sudan is smuggled into neighboring states before being re-exported, primarily to the UAE—a global gold trading hub.
The activities surrounding gold smuggling also intertwine with ongoing conflicts and socio-political instability within these regions. The extraction and trade of gold in South Sudan and its neighboring nations frequently fund warring factions and violent groups, resulting in further destabilization.
Though the scale of the problem is significant, South Sudan remains largely off the radar of mainstream international regulatory bodies. Crucially, the nation is not a participant in the Extractive Industries Transparency Initiative (EITI), which promotes the open and accountable management of oil, gas, and mineral resources. Furthermore, the country lacks comprehensive legislation governing its mining sector, leaving large gaps in regulation that contribute to the rampant illegal trade.
Given the enormity of the challenges that South Sudan faces, the stakes are high for enacting meaningful change. SWISSAID has urged African governments—including South Sudan—to bolster transparency and enhance regulatory oversight while formalizing artisanal mining operations. Doing so could significantly stem revenue losses and simultaneously work towards safeguarding the rights of miners and local communities often affected by illegal mining and smuggling activities.
As calls for action grow louder, the role of international actors becomes increasingly important. Collaborating with South Sudan to implement robust legal frameworks, train officials, and create regional cooperation agreements with neighboring Uganda will be vital to dismantling smuggling networks and ensuring that South Sudan’s gold wealth can benefit its citizens.
In conclusion, South Sudan’s gold sector, marred by smuggling and corrupted oversight, faces an uphill battle towards regulation and transparency. The wealth of natural resources present in the country offers an avenue for economic recuperation, yet the leeching of gold through illicit channels ultimately underscores the urgent need for reform. The experiences of South Sudan exemplify broader patterns across Africa, where mineral wealth exists in stark contrast to the socio-economic challenges that block progress. Addressing these gaps will require concerted and collaborative efforts, positioning South Sudan to harness its mineral wealth effectively for development while actively combating corruption in its gold sector.
