Government of Sudan liberalizes gold market

Gold nuggets. (Illustrative image) DEA / G.CAPPELLI / Getty Images

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As of this week, it is no longer necessary for Sudanese and mining companies operating in the country to go through the Central Bank to sell their gold. The government authorizes the direct export of yellow metal. A measure expected by the gold sector. Sudan has become a giant of gold production in Africa in a decade, but some of the merchandise was smuggled due to restrictive measures.

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In 2011, the independence of South Sudan was a financial drama for Khartoum. Sudan instantly lost most of its oil revenues, with the vast majority of black gold fields across the border.

Khartoum then bet on the gold sector to restore its finances. A winning bet, because in a decade, the country has risen to the third African rank among gold producers, reaching a peak of a hundred tonnes per year. The sector was opened to artisanal diggers and industrialists.

Ailing economy

Gold supports a million and a half people, but the state has always wanted to keep strict control over this precious metal, and producers were required to sell their goods to the Central Bank, which is at a lower rate than the price of the market. This has generated significant smuggling and illegal exports, notably to the United Arab Emirates.

Earlier this year, the government relaxed regulations. Now there are no limits. Producers can export without constraint once they pay their taxes. This opening will make it possible to limit or even eliminate smuggling and therefore to strengthen budgetary revenue. Because the Sudanese state is in great difficulties. Recession, inflation, budget deficit, Khartoum is unable to rectify the situation and calm a bloodless population .

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