Gold prices have hit record highs in 2025, driven by global instability. In a world of tariffs and wars, investors flock to gold as one of the few stable assets left. Central banks, hedge funds, and retail investors all want a piece. However, many people know little about where this gold comes from—or the violence it fuels.
A Lifeline for Sahel Governments
In West Africa’s Sahel, gold has become a lifeline. Military juntas in Burkina Faso, Mali, and Niger depend on it to fund their rule. They face jihadist insurgencies, regional isolation, and climate shocks.
According to the World Gold Council, these three countries produce around 230 tonnes of gold each year. At today’s prices, that’s worth about $15 billion. Yet, since artisanal mining often goes unrecorded, the real total may be much higher. Together, they produce more gold than any other part of Africa.
Officials claim this wealth benefits citizens. They say it increases “sovereignty” and creates jobs. However, Russian firms are grabbing bigger shares of the sector. For instance, Mali recently laid the foundation for a gold refinery partly owned by Russia’s Yadran Group. The plant promises 500 direct jobs and 2,000 indirect ones.
In Burkina Faso, the junta has set up a state mining firm. Foreign companies must now give it a 15% stake and train local staff. Meanwhile, AI-generated media campaigns are praising young military ruler Capt Ibrahim Traoré for securing this revenue. One song even featured an AI Rihanna, crooning, “Mining gold from deepest dirt. But souls are rich and true.”
Hidden Costs of Conflict
In reality, much of this money fuels conflict. The juntas need fast cash for counterinsurgency. In Mali, Russian mercenaries like Wagner Group—and now its successor, Africa Corps—lead many operations. They are paid in gold or mining rights.
Since 2010, Mali’s military spending has tripled. By 2020, it reached 22% of the national budget. Yet, Human Rights Watch has documented atrocities, including torture and executions, by both soldiers and mercenaries.
The violence often backfires. Civilians targeted by these campaigns are more likely to join jihadist groups like Jamaat Nusrat al-Islam wal-Muslimin (JNIM). In 2025, JNIM carried out record attacks in Burkina Faso.
Gold and the Jihadist Economy
Many mines in the Sahel are informal. They operate without licenses or oversight. As a result, armed groups fight to control them. The UN Office on Drugs and Crime reports that most of this gold ends up in the UAE, a global hub for refining.
According to Chatham House expert Alex Vines, “You see violent extremist groups moving onto artisanal production areas for control.” The profits fund weapons and recruitment.
For miners, life remains harsh. One miner in Mali’s Kidal region said he earns about $18–$36 on a good day. Rising global prices have not improved wages.
“Prices went up, but the extra profit goes to mine owners. It’s risky and uncertain, but for many of us, it’s the only option,” he explained.
Hard to Trace, Easy to Trade
Gold has become Africa’s new conflict commodity, replacing “blood diamonds.” Yet efforts to stop its trade have fallen short. The Kimberley Process curbed conflict diamonds by creating strict certification. But no similar system exists for gold.
Tracing gold is almost impossible. Unlike diamonds, it’s smelted early. By the time it reaches UAE refineries, its origin is untraceable.
Some of this gold enters UK and European markets. Vines warned, “Once it’s here, there is no way of testing what it is.”
Weak Enforcement and Voluntary Standards
The UAE says it has strong regulations. Officials cite strict anti-money-laundering rules and annual audits. However, enforcement has been uneven. Although the UAE introduced ethical gold standards in 2021, they remain voluntary.
Vines also noted that certification systems were designed for non-state actors, not governments. This makes accountability even harder.
What Lies Ahead
Gold’s role in funding war is likely to grow. As long as prices remain high and enforcement remains weak, this trade will continue. Sadly, for many communities in the Sahel, this means more violence—and little hope that gold wealth will ever reach them.
