DRC and Cameroon Lose Billions in Gold Revenues Amid Smuggling and Weak Traceability
Gold Smuggling and Weak Controls Undermine Revenue Collection in DRC and Cameroon’s Mining Sectors
Despite reforms aimed at improving governance in the extractive sector, the Democratic Republic of Congo (DRC) and Cameroon continue to lose significant revenues from gold production due to smuggling, informal trade networks and persistent challenges in tracing artisanal gold supplies.
A report by the Institute for Security Studies (ISS) highlights the weaknesses in the two countries’ gold governance systems, pointing to major gaps between official production figures and the volumes of gold entering international markets.
Large Gap Between Reported and Actual Gold Exports
In Cameroon, the report identifies a substantial discrepancy between government-reported exports and data from international trading partners.
According to figures from the Extractive Industries Transparency Initiative (EITI), Cameroon officially recorded only 22 kilograms of gold exports in 2023.
However, data from importing countries indicate that approximately 15 tonnes of gold originating from Cameroon were purchased during the same period.
Researchers attribute the difference to weak monitoring systems, limited transparency in mining licence allocation and the existence of networks that allow gold to move outside official channels.
Aïcha Pemboura, a researcher at the ISS Observatory of Organized Crime and Violence in Central Africa, said these challenges prevent governments from accurately tracking production and collecting the full value of revenues generated by gold mining.
In the DRC, gold governance challenges are intensified by insecurity in several mining areas, particularly in the eastern provinces where armed groups continue to operate.
The presence of armed actors in some gold-producing regions has weakened state oversight and contributed to the growth of illegal mining networks.
The ISS noted that illicit gold activities can provide financial support to certain armed groups involved in regional conflicts.
The report also identified persistent difficulties in formalising artisanal mining, monitoring mining sites and securing mineral supply chains as key obstacles facing the Congolese gold sector.
Environmental and Social Impacts
Beyond lost government revenue, poorly regulated gold mining has created significant environmental and social concerns.
The uncontrolled use of chemicals such as mercury and cyanide in some artisanal mining operations has contributed to soil and water contamination. Mining activities have also affected agricultural land and limited the economic benefits received by communities living near mining areas.
Dubai’s Role in Gold Trade Routes
The ISS report points to Dubai as one of the major destinations for gold originating from the DRC and Cameroon.
However, limited traceability systems make it difficult to determine the exact origin of exported gold and prevent producing countries from fully capturing tax revenues linked to the trade of this strategic mineral.
To improve gold sector governance, the ISS recommends stronger monitoring of mining sites, improved traceability mechanisms, faster formalisation of artisanal mining and greater cooperation between Central African countries.
For the DRC and Cameroon, strengthening control over gold production is not only a matter of improving mining governance but also a crucial step toward protecting public revenues, reducing illegal trade and ensuring that mineral wealth benefits governments, local communities and legitimate operators.
