Sudan’s Gold Industry Struggles Amid Conflict and Collapsing Trade Ties

Sudan’s gold industry, once a vital source of foreign currency and economic stability, is facing severe setbacks as ongoing conflict, damaged infrastructure, and collapsing trade ties continue to undermine production and exports.

Although global gold prices are soaring to record highs, Sudanese traders are unable to benefit. The country, ranked among Africa’s leading gold producers, has seen its industry crippled by insecurity and political turmoil. Mohammed Al-Sawakni, head of the Gold Industry Association in Sudan’s Red Sea State, described the situation as dire, saying, “The current market is incredibly difficult. It’s a heavy blow to the gold sector.”

Gold mining in Sudan remains largely traditional, relying on small-scale operations. Since the outbreak of civil war nearly three years ago, insecurity has sharply reduced output. A significant portion of the country’s gold is now being smuggled through illegal channels, depriving the state of much-needed revenue. Processing and trade have also been disrupted, with shortages of raw materials forcing some refineries to scale back or shut down entirely. Small workshops and retail traders are struggling to survive, while declining trade volumes have squeezed profit margins across the sector.

The collapse of trade ties has further deepened the crisis. In May, Sudan severed relations with the United Arab Emirates, accusing the Gulf nation of backing the paramilitary Rapid Support Forces, who are locked in a violent struggle with Sudan’s armed forces. The decision cut off access to one of the Middle East’s most important gold markets. Economist Ahmed Omar Khojali warned that replacing the UAE as a trading partner will be extremely difficult, noting, “It won’t be easy for Sudan to find alternative markets.”

In response, Sudan’s government is stepping up efforts to combat illegal mining and smuggling, while tightening regulation of gold sales and exports. Authorities are also pushing forward with ambitious plans to establish an international gold exchange in Khartoum and launch a global online trading platform. Officials say these initiatives are designed to streamline gold circulation, expand export avenues, and restore confidence in the sector despite the ongoing turmoil.

For now, however, Sudan’s gold industry remains under immense pressure. With civil war showing no signs of resolution and trade ties fractured, the country’s ability to leverage its most valuable natural resource is severely constrained. The future of Sudan’s gold sector will depend not only on government reforms but also on the restoration of peace and stability across the nation.