Economic Expert: Gold is a Wasted Strategic Asset

An economic expert told Al-Ahdath that the current policies governing the gold sector in Sudan—chief among them the Central Bank of Sudan’s export policies and its withdrawal from purchasing gold from traditional mining—have failed to establish an effective system to protect this vital resource. He stated, “On the contrary, these policies have contributed to the expansion of smuggling, a lack of transparency, and weak official revenues.”

He explained that the core problem does not lie in the scarcity of external markets or a lack of demand for Sudanese gold, but rather in the absence of a clear strategic vision to manage it as a long-term economic asset, as well as the lack of effective implementation mechanisms that reflect the state’s seriousness in utilizing gold as a national resource.

The expert pointed out that Sudan must stop treating gold merely as a commodity for quick cash, and instead use it as collateral to obtain concessional financing or as a foundation for developing local and international financial instruments linked to gold. He cited Turkey’s 2017 initiative, where the government collected over seven tons of gold from citizens and introduced it into the banking system through gold-backed certificates and bonds, thus providing the state with liquidity without resorting to international markets.

He added that direct gold sales should be the last resort, not the first, especially since gold is a depletable resource and represents a strategic reserve for future generations. He emphasized the importance of building an actual gold reserve, particularly since Sudan ranks third in Africa in terms of production, and linking this reserve to economic tools that support monetary stability.

Regarding exports through the UAE, he noted that most of the quantities currently exported are by the private sector, and that Dubai remains a preferred destination for some exporters due to simplified procedures. However, this situation perpetuates the loss of national revenue unless the state takes the initiative to develop a regulated domestic market with an accredited refinery and an attractive pricing system that encourages producers and traders to sell locally to the state.

He further explained that such a local model would enhance oversight of gold movements, ensure the recovery of export proceeds, and restore the state’s role as a direct beneficiary of production instead of remaining on the sidelines.

He also noted that traditional mining accounts for over 80% of gold production, yet it remains unregulated and lacks oversight, suffers from conflicts of interest among supervising bodies, and involves environmentally harmful practices. This makes it one of the major challenges as well as a significant source of economic loss in the country.

He concluded by affirming that “Sudan does not suffer from a lack of gold, nor from markets or potential partners—ranging from Turkey and Russia to China, Qatar, and Saudi Arabia—but rather from a lack of political will and serious action to end the chaos and build a national system that manages the resource transparently to serve the macroeconomy and enhance monetary and financial stability in the country.”