Gold smuggling thrives on the Egypt-Sudan border, driven by conflict, demand, and organized crime.
With the conflict between Sudan's army and the Rapid Support Forces (RSF) stretching beyond 18 months, gold smuggling has surged along the border with Egypt. This trade, involving tens of thousands of people, has grown into an intricate web of organized crime spanning multiple countries beyond Sudan and Egypt.
Gold Mining Across the Border Region
Egypt’s Nubian region, home to approximately 125 traditional mining sites, is rich in gold deposits. Key areas include the Eastern Desert, a vast 223,000-square-kilometer area along the Red Sea, and the triangular border zone shared with Sudan and Libya. Major mining players include Egypt’s state-owned Shalateen and Hammash Misr companies, alongside Sukari, owned by multinational Centamin. Other international entities from Britain, Russia, and Australia have joined the rush, with Egypt recently opening additional mining zones in the Eastern Desert's "golden triangle."
Sudan, too, has seen a boom in mining activities, particularly in the Red Sea, Northern, and River Nile states. These areas, especially those near the Egyptian border, have thrived since the outbreak of war in April 2023, benefiting from logistical advantages like easy access to supplies from Egypt.
Sudanese miners, such as Ahmed Hussein, report that mining has expanded dramatically, particularly in areas like Salah in southern Egypt and Almatar and Gabal Nimir in Sudan. Many miners, like Ibrahim, have moved between the two countries, drawn by higher gold prices in Egypt.
Smuggling Tactics and Networks
Gold smuggling networks along the border are sophisticated and well-organized. Smugglers use a variety of tactics, often hiding gold in clothing or with individuals crossing the border. In some cases, people being smuggled are asked to carry gold as payment for their transit. Strong, armed tribal groups such as the Ababda, Rashaida, and Bishari, familiar with the border's rugged terrain, play a crucial role in transporting gold.
The gold is often exchanged for dollars or other contraband goods like fuel, mercury, and cyanide. Smugglers frequently change vehicles after crossing the border, sometimes dismantling cars and selling them as spare parts to evade detection.
In southern Egypt, regions around Aswan, Luxor, Kom Ombo, and Edfu have become key hubs for these exchanges. Specific meeting points are prearranged, and payments are either made in advance or at the time of delivery.
Economic and Policy Drivers
The booming smuggling trade has coincided with Egypt's efforts to bolster its gold reserves amidst a severe economic crisis. The Egyptian pound has sharply devalued, with the currency floating in March 2024. Meanwhile, Egypt’s gold reserves reached a record 126 tonnes in 2023.
Since 2019, Egypt has focused on expanding its gold production through legislative reforms that attracted both local and international investors. Revenues from gold production soared from $6 billion in 2022 to $9.5 billion in the first half of 2024. However, higher gold prices in Egypt, fueled by demand for 21-karat gold, have made smuggling highly lucrative.
Sudanese gold, prized for its purity and rarity, is sold at a premium in Egypt. While a gram of 21-karat gold costs $60 in Sudan, the price exceeds $80 in Egypt. The disparity has spurred smuggling, with Sudanese traders targeting Egypt’s growing demand for gold reserves to stabilize its currency and economy.
Turning a Blind Eye
Despite the illegal nature of this trade, Egyptian authorities are often accused of overlooking smuggling activities. Observers suggest that this leniency is driven by Egypt’s need to increase its gold reserves, a critical asset for shoring up the nation’s struggling economy.
The ongoing smuggling highlights the complex interplay between economic desperation, organized crime, and regional instability, with the Egypt-Sudan border at the center of this high-stakes trade.