Sudan's vital gold industry hit by ongoing conflict, collapsing trade ties

Sudan's gold industry, a key source of foreign currency, is reeling under ongoing conflict, infrastructure damage, and collapsing trade ties.

The price of gold is hitting record highs but gold traders in Sudan are missing out. The country is one of Africa's leading gold producers and exporters but conflict, infrastructure damage, and collapsing trade ties mean have seen its vital gold industry suffering severe setbacks.

"The current market is incredibly difficult. It's a heavy blow to the gold sector," says Mohammed Al-Sawakni, head of the Gold Industry Association in Sudan's Red Sea State.

Gold mining in Sudan remains largely traditional. Since the outbreak of the conflict, insecurity has caused a sharp decline in output, and a portion of the country's gold has been smuggled out through illegal channels.

Gold processing and trade have also been disrupted. 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. Meanwhile, a visible drop in gold trade volume has narrowed profit margins for traders.

Trade ties

Nearly three years of civil war have crippled production and exports. In May, Khartoum also 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 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.