On October 20, President Michaël Randrianirina stated that approximately 100 tonnes of gold are smuggled out of Madagascar to Dubai every year, with a potential value of up to $10 billion. This claim has sparked debate, as the Central Bank of Madagascar estimates the country's annual gold production at only 20 tonnes. The President's statement was made at Ivato Airport, but no sources were cited to support the claim.
The Central Bank's estimate of 20 tonnes per year is supported by other sources, including the planetGOLD program, which cites 14 tonnes per year for artisanal gold mining, employing around 600,000 people. Additionally, an investigation conducted in Dubai estimated that 12 to 15 tonnes of gold are smuggled out of Madagascar annually. These figures are significantly lower than the President's claim of 100 tonnes.
If the President's claim is accurate, it would imply that Madagascar's gold production is substantially higher than estimated or that gold from other countries is being smuggled through Madagascar. However, no public documents support this claim, and the press has received it with caution. The value of gold is substantial, with one tonne valued at approximately $133 million, based on recent prices.
In 2024, the United Arab Emirates imported 748 tonnes of gold from Africa, according to the Swiss NGO SWISSAID. If 100 tonnes of gold from Madagascar were smuggled to Dubai, it would account for around 13% of the total African gold imported by the UAE. Other countries, such as Togo, Uganda, Sudan, and Rwanda, have been identified as significant gold exporters to the UAE.
The Malagasy government has taken steps to address gold smuggling, including strengthening controls at airports, renewing personnel, and improving transaction tracking. The reopening of a one-stop shop in September has led to the export of a first batch of 2.60 kilos of gold. The Central Bank aims to hold four tonnes of gold in reserve but currently holds only one tonne.
Gold seizures at Ivato Airport indicate that smuggling is a real issue, with over 20 kilos of gold seized since January, including 12 kilos in the first semester, 6 kilos on September 13, and 2.85 kilos on October 22. However, these seizures do not provide a comprehensive picture of the scale of gold smuggling.
The issue of gold smuggling has significant implications for Madagascar's economy, with potential losses in revenue and the impact on the country's gold reserves. The government's efforts to strengthen controls and improve tracking are crucial in addressing this issue and ensuring that gold is exported through official channels.
Key points
- President Michaël Randrianirina claims 100 tonnes of gold are smuggled to Dubai annually.
- The Central Bank estimates Madagascar's annual gold production at 20 tonnes.
- Gold smuggling has significant implications for Madagascar's economy and gold reserves.
