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    The South Sudan HeraldThe South Sudan Herald
    Home»Business

    Shadow Routes: South Sudan’s Hidden Gold Rush

    By The South Sudan HeraldNovember 29, 2025 Business 2 Mins Read
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    Data Desert in a Goldland

    Researchers estimate South Sudan produces about five tonnes of gold yearly, yet official ledgers record virtually none of it. The Ministry of Mining concedes, “there is no formal mining,” and the country stays outside global transparency bodies, leaving production and export figures in complete darkness.

    Artisanal Pits and Hidden Players

    Gold extraction is overwhelmingly artisanal, concentrated in Eastern and Central Equatoria. Tens of thousands of miners work with rudimentary tools, often under hazardous conditions.

    Limited state oversight has allowed international traders, local powerbrokers and foreign middlemen to dominate the value chain, turning pits into micro-economies beyond government reach.

    Smuggling Corridors to Gulf and East Africa

    With porous borders and non-competitive official prices, gold routinely leaves South Sudan on informal routes into Uganda and Kenya or aboard flights from Juba to Dubai.

    The United Arab Emirates declared imports worth only USD 20-27 million in the past two years, a fraction of estimated output, suggesting widespread re-labeling of South Sudanese bullion as Ugandan or Kenyan before re-export.

    Armed Groups and Informal Taxation

    Armed actors, including the South Sudan People’s Defence Force, SPLA-IO and the National Salvation Front, levy unofficial taxes, seize pits or mine directly to supplement low salaries, embedding conflict incentives in the sector.

    Analysts warn that the country has also become a transit hub for gold smuggled from war-torn Sudan, with flights reportedly involving multiple security services and Sudan’s Rapid Support Forces.

    Prospects for Formalisation

    Juba earmarked USD 65 million last year for geological mapping, hoping to lure industrial investors deterred by decades of unrest and perceived kleptocracy.

    SWISSAID argues that without credible data, stronger institutions and security guarantees, the country will keep losing millions in revenue while fragile communities shoulder the environmental and social costs.

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