Another African country tightens grip on gold sector after up to $3.8 billion in annual exports go undeclared
Africa’s third-largest gold producer, Mali, has launched a new state agency to regulate its vast artisanal gold industry after authorities uncovered significant discrepancies between the country’s officially declared gold exports and the volumes recorded by importing nations, exposing an illicit trade estimated to be worth as much as $3.8 billion annually.
The newly established Malian Office of Precious Substances will centralise and supervise the trade of gold and other precious minerals, particularly those produced by artisanal and small-scale miners. The initiative forms part of the government’s broader strategy to tighten oversight of the country’s most valuable export and recover billions of dollars in lost revenue.
The move marks another milestone in Mali’s ambitious mining reforms as the military-led government seeks to increase state control over the sector, curb illegal exports and ensure the country’s mineral wealth contributes more directly to national development.
Artisanal mining remains one of the largest sources of employment in Mali, supporting nearly two million people across an estimated 350 to 400 mining sites. However, much of the gold produced never passes through official export channels, making the sector highly vulnerable to smuggling and tax evasion.
A 2024 report by Swiss NGO SWISSAID estimated that between 30 and 57 metric tonnes of Malian gold are exported every year without being officially declared. The undeclared trade is valued at between $1.98 billion and $3.77 billion annually, representing one of the largest informal gold markets on the continent.
The report further estimated that Mali produced approximately 300 metric tonnes of undeclared gold worth around $13.5 billion between 2012 and 2022, highlighting the enormous scale of revenue losses through illicit trade over the past decade.
Mining reforms gather momentum
The creation of the new regulator is the latest chapter in Mali’s sweeping overhaul of its mining industry.
Following the adoption of a new mining code in 2023, the government introduced higher taxes on mining companies, increased mandatory state ownership in mining projects from 20% to at least 35%, strengthened regulatory oversight and launched nationwide audits that recovered approximately 761 billion CFA francs (about $1.2 billion) in unpaid mining revenues.
The reforms also led to a prolonged dispute with Canadian mining giant Barrick Mining over the application of the new regulations at the Loulo-Gounkoto complex, Mali’s largest gold mine. After nearly two years of negotiations, both parties eventually reached a settlement, allowing operations to continue.
Industry analysts believe the establishment of the Malian Office of Precious Substances demonstrates the government’s intention to extend its reform agenda beyond large-scale industrial mines to the country’s largely informal artisanal mining sector, where regulation has historically been weak.
Part of a growing continental trend
Mali’s latest reforms reflect a broader shift across Africa, where governments are seeking to capture a greater share of the value generated by their natural resources amid strong global demand for gold and critical minerals.
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Neighbouring Burkina Faso has also strengthened state oversight of artisanal mining, tightened controls on gold exports and introduced measures aimed at reducing smuggling while boosting government revenues.
Experts note that formalising artisanal mining has become increasingly important because the sector contributes more than 20% of global gold production and provides livelihoods for over 10 million people worldwide. Yet a substantial portion of its output continues to bypass official supply chains, depriving governments of valuable export earnings and tax revenues.
For Mali, successfully integrating more artisanal gold into the formal economy could significantly strengthen public finances while improving transparency across one of Africa’s most strategically important mining sectors.
Official data from Mali’s national statistics agency, Instat, shows declared gold exports rose sharply to 2.75 trillion CFA francs (about $4.81 billion) in 2025, up from 1.61 trillion CFA francs (approximately $2.81 billion) the previous year.
South Africa remained the largest destination for Mali’s officially declared gold exports, accounting for 60.4% of shipments, followed by the United Arab Emirates with 12.2% and Australia with 12.1%.
Despite the impressive growth in official exports, authorities acknowledge that billions of dollars worth of artisanal gold continue to leave the country through unofficial channels. The effectiveness of the new regulator will therefore be judged not simply by its establishment, but by its ability to formalise one of Africa’s largest informal gold markets and ensure that more of the country’s mineral wealth benefits the Malian economy.
