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West Africa Trade Hub  /  News  /  Sudan’s Gold Industry Struggles as War and Trade Breakdown Take Their Toll
 / Jan 26, 2026 at 17:42

Sudan’s Gold Industry Struggles as War and Trade Breakdown Take Their Toll

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West Africa Trade Hub

Sudan’s Gold Industry Struggles as War and Trade Breakdown Take Their Toll

Sudan’s gold sector, long considered one of the country’s most important sources of foreign income, is facing severe disruption as prolonged conflict continues to damage production, processing, and trade. This downturn comes at a time when global gold prices are reaching historic highs, leaving Sudanese producers unable to benefit from favorable market conditions.

Years of instability have weakened the industry’s foundations, turning a once-critical economic pillar into another casualty of the ongoing crisis.

Falling Output and Disrupted Processing

Gold mining in Sudan is largely carried out using traditional methods, making it particularly vulnerable to insecurity. Since fighting escalated, access to mining areas has become more dangerous, leading to a sharp decline in output. At the same time, illegal mining and smuggling have increased, diverting gold away from official channels.

Processing facilities have also been affected. Shortages of essential inputs and repeated supply disruptions have forced some refineries to scale back operations or shut down entirely. Small workshops and retail traders, already operating on thin margins, are finding it increasingly difficult to survive as trade volumes shrink.

Broken Trade Routes and Lost Markets

Nearly three years of conflict have severely weakened Sudan’s ability to export gold. The situation worsened after diplomatic ties were severed with a key regional trading partner earlier this year, cutting off access to one of the world’s most important gold hubs.

Economists warn that replacing such a major market will be challenging, especially as Sudan’s international trade relationships continue to suffer from political isolation and logistical constraints.

Government Response Amid Ongoing Turmoil

In an effort to stabilize the sector, authorities are stepping up actions against illegal mining and cross-border smuggling. The government is also seeking tighter oversight of gold sales and export procedures to recover lost revenues.

Plans are underway to create a centralized gold exchange in the capital and to develop an international online trading platform. Officials hope these measures will improve transparency, modernize gold circulation, and open new export channels, even as conflict continues to undermine the broader economy.

Despite these initiatives, industry experts caution that meaningful recovery will remain difficult unless security improves and stable trade connections are restored.

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