Gold has always dazzled the world. It will always. From the vaults of central banks to the portfolios of hedge funds and the jewellery boxes of everyday investors, everyone wants a piece of it. But few stop to ask where the gold comes from or what it’s costing the places it’s mined.
In West Africa’s Sahel region, specifically Burkina Faso, Mali, and Niger, gold has become more than just a precious metal. It is a geopolitical lifeline. For military juntas clinging to power amid jihadist violence, international isolation, and economic decline, gold may be the last viable resource keeping their regimes afloat.
“Because gold prices have been at a historic high… the military governments are hoping that they will be able to benefit directly,” said Beverly Ochieng, a senior researcher at Control Risks, a global consultancy, in an interview with the BBC.
Together, the three countries produce roughly 230 tonnes of gold annually, worth around $15 billion at current global prices, according to estimates from the World Gold Council. That’s more gold than any single country in Africa produces, making the Sahel not just a troubled region, but also a global player in the gold economy.
With this newfound economic significance comes a scramble for control. While the juntas insist that gold revenue is fuelling a new era of national “sovereignty,” there’s growing concern that what’s really taking place is a shift in influence from Western interests to Russian firms.
In Mali, for instance, junta leader Gen Assimi Goïta recently laid the foundation stone for a new gold refinery. The project, in partnership with the Russian-owned Yadran Group, is expected to create 500 direct and 2,000 indirect jobs. It’s a symbol of shifting allegiances and an assertion of independence but also a nod to Moscow’s expanding footprint in the region.
Much of the Sahel’s gold, however, doesn’t flow through official channels. A 2023 report by the United Nations Office on Drugs and Crime (UNODC) reveals that artisanal and small-scale mining dominates the sector. This often takes place on informal, unregulated sites, far from state oversight and dangerously close to areas controlled by armed groups.
Jihadist factions and local militias have increasingly turned to gold mining as a lucrative source of revenue. In parts of Mali and Burkina Faso, they have established territorial strongholds around these mines, using the profits to fund their operations and extend their reach.
The UNODC believes a significant portion of this illegally mined gold is smuggled to the United Arab Emirates (UAE), a major global hub for gold trading and refining. Once it reaches international markets, its origins and any links to conflict are easily obscured.
The New Blood Gold? At What Cost?
The situation draws eerie parallels with the “blood diamond” crises of the late 20th century. Back then, diamonds helped fuel brutal conflicts in Sierra Leone, Angola, and the Democratic Republic of Congo, prompting international outcry and the eventual establishment of the Kimberley Process Certification Scheme in 2003.
But gold has not attracted the same level of global scrutiny. Dr Nicholas Vines, a former UN blood diamond investigator, warns that gold is quickly becoming Africa’s new primary conflict commodity.
One of the key problems is the lack of unified ethical standards. While the London Bullion Market Association (LBMA) mandates compliance with OECD guidelines for responsible sourcing, enforcement especially in regions like the UAE, remains inconsistent at best.
What’s unfolding in the Sahel is more than just a resource boom. It’s a complex and potentially volatile convergence of economic opportunity, international rivalry, armed conflict, and climate pressure.
If the international community fails to learn from the past, the Sahel’s gold could fuel the next great resource-driven crisis.
