The dark side of Rwanda’s gold exports exposes a grave irony: a country that has positioned itself as a leader in African development thrives on the exploitation of its neighbours’ suffering
DOUGLAS RASBASH
Special Correspondent
Rwanda, despite its modest gold reserves, has become an unlikely powerhouse in global gold exports. According to the Observatory of Economic Complexity, Rwanda exported $885 million worth of gold in 2023, making gold the country’s top export product.
This is surprising, considering that Rwanda’s gold mines are small scale and artisanal, and the country is not a significant gold producer. So how did Rwanda, with its relatively insignificant mining operations, rise to such prominence in the gold trade?
The answer lies in the conflict-ridden neighbouring Democratic Republic of the Congo (DRC). Eastern DRC, rich in minerals like gold, has long been a battleground for armed groups and militias who control lucrative mining areas.
Gold laundering hub
These groups often engage in illegal mining, with gold being smuggled across borders to be sold to international buyers. Rwanda’s gold export boom, which began in earnest around 2016, coincides with an explosion in illicit gold trafficking from the DRC, particularly from the unstable regions of Ituri and South Kivu.
The smuggling route is simple yet devastating. Gold is illegally extracted in the DRC, funnelled across the border into Rwanda, and then processed, refined, and labelled as Rwandan gold before being sent to global markets.
The United Nations and various NGOs have repeatedly accused Rwanda of acting as a laundering hub for Congolese gold, masking its origins and creating the illusion of a legitimate export trade. In this arrangement, Rwanda profits while the DRC, one of the world’s poorest yet most resource-rich countries, loses billions in revenue.
Rwanda and the UAE
This trade took a significant turn in 2016, which marked a dramatic spike from 336 000 kilograms to 2.9 million kilograms in only two years. One key factor was the opening of Uganda’s African Gold Refinery (AGR) in Entebbe, designed to process local gold. However, this refinery quickly became a focal point for illicit Congolese gold, drawing international scrutiny.
As Uganda’s refining sector came under increased pressure, Rwanda became an alternative conduit for smuggling and laundering Congolese gold, offering a more discreet route to the United Arab Emirates (UAE) and other markets.
Rwanda’s primary gold buyer is the UAE, which is a known hub for conflict minerals. Since 2016, Rwanda and the UAE have strengthened their trade relations, with the emirate of Dubai emerging as a major destination for Rwandan gold. This partnership has allowed Rwanda to channel more illicit gold into the global market under the guise of legality.
Model of stability
The flow of gold from Rwanda to the UAE raises further questions about how much of it is genuine Rwandan gold and how much comes from across the border. However, despite mounting evidence and repeated accusations, the African Union (AU) has remained largely silent, doing little to address Rwanda’s role in perpetuating the illicit trade. Rwanda’s government, under President Paul Kagame, has positioned the country as a model of stability and progress in Africa, making it difficult for regional and international bodies to act against it.
The good news is that the United Kingdom announced last week that it will impose sanctions on Rwanda. Furthermore, aid, upon which Rwanda remains dependent, has been suspended while pressure builds in the UN to extend the range of recognised conflict minerals from diamonds to gold and others like cobalt.
The significance of 2016 in Rwanda’s gold trade cannot be overstated. That year marked the point when Rwanda fully entrenched itself as a key player in the illegal gold trade. Through a combination of regional instability, economic opportunism and international complicity, Rwanda has used the DRC’s instability to bolster its own economy, profiting from plunder while maintaining an outwardly clean image.
The normalisation of trading in conflict minerals must stop. Trading in blood diamonds is illegal, so must trading in blood gold. The dark side of Rwanda’s gold exports exposes a grave irony: a country that positions itself as a leader in African development thrives on the exploitation of its neighbours’ suffering.