Malign actors continue to exploit vulnerabilities in the gold supply chain across subSaharan Africa

of the sector: mining, trading, refining, manufacturing, and retail of end products.

But there are still many risks that are directly and indirectly connected to the gold sector in sub-Saharan Africa. For instance, without adequate due diligence, an industry participant may inadvertently contribute to conflict and terror financing, money laundering, corruption and sanctions evasion.

The US points out that while these concerns have been well known and extensively documented for many years in certain regions, such as eastern DRC, there are newer risks in places like Sudan, CAR, and Mali involving the Wagner Group.

In trying to protect these natural resources from falling into the wrong hands, the continent’s leaders must be aligned with the US government in its commitment to addressing the relationship between gold and the illicit revenue streams that contribute to and fund conflicts, corruption, and other concerns in cases with relative ease. Local armed groups in several conflict-affected regions have used the gold trade to finance their activities for decades, and armed entities hostile to American interests are also increasing their presence in sub-Saharan Africa’s gold trade.

These groups include jihadists, some with links to Al-Qaeda and the Islamic State, as well as the Wagner Group. Gold’s role as a store of value and currency, in addition to being a material used in other supply chains, further exacerbates these challenges. The American government has warned that those in the industry should be prepared for increased US government attention to the relationship between gold and these groups’ revenue streams and should be prepared for the possibility that US sanctions could be used to disrupt these groups’ operations.

African gold-producing countries should welcome this American initiative and back it fully.