Who profits from Africa’s gold?

African nations are pursuing enhanced control over their gold resources, aiming to capture a larger share of the value generated from this critical commodity. Despite these efforts, a significant portion of the profits derived from African gold continues to be repatriated by foreign entities. This dynamic highlights an ongoing challenge for the continent in fully leveraging its mineral wealth for domestic development. For instance, in 2023, artisanal and small-scale gold miners in Ghana, a major gold-producing country, reported that approximately 90% of the gold they extracted was being smuggled out of the country, according to a report by the Extractive Industries Transparency Initiative (EITI). This illicit outflow deprives the Ghanaian government of substantial tax revenues and foreign exchange earnings. Similar situations are observed in other African gold-producing nations, where complex supply chains and international trading networks often result in value addition and profit realization occurring outside the continent. Efforts to formalize the artisanal mining sector and strengthen regulatory frameworks are underway in countries like Burkina Faso and Mali, with the goal of improving traceability and ensuring that more of the gold's economic benefits remain within national borders. However, these initiatives face considerable hurdles, including limited technical capacity, corruption, and the pervasive influence of international commodity markets.