Senegal’s President Bassirou Diomaye Faye has unveiled a sweeping reform of the country’s gold industry, including the creation of a National Gold Trading Centre to strengthen government oversight and tackle illicit exports. Announced on Wednesday, the initiative is backed by research from Swiss NGO SWISSAID and aims to stem billions of dollars lost to unregulated gold smuggling.
Targeting Illicit Gold Outflows
President Faye described the new trading centre as a “sovereign imperative,” emphasizing the significant impact of unrecorded exports on the national economy. Centralizing gold trading under state supervision is expected to curb smuggling networks thriving in poorly regulated artisanal mining zones.
SWISSAID reported that between 2013 and 2022, Senegal lost an estimated 36 to 41 tonnes of gold to illegal exports, translating into $2.38 billion to $2.71 billion in lost revenue over the decade. Most of this unrecorded gold came from artisanal and small-scale operations, where production is substantial but often unregistered. The NGO warned that these untracked flows distort official trade statistics and deny the state the full economic benefit of its mineral wealth.
Sweeping Mining Sector Reforms
In addition to the trading centre, President Faye directed the government to draft a new Mining Code by the end of the year. The updated legislation will focus on transparency, governance, and modernized regulations across Senegal’s extractive sector. Public mining companies are also set for restructuring, including potential leadership changes, to ensure state participation reflects “good governance and national interest.”
Historically, oversight of Senegal’s mining landscape—which includes large-scale operations, artisanal miners, and cross-border trade—has been challenging. The reforms are designed to introduce clearer rules on licensing, production reporting, and export controls, strengthening government oversight.
Gold Remains Senegal’s Leading Mineral Export
Gold continues to dominate the country’s extractive industry, with official exports totaling approximately $244 billion in the first half of 2024, nearly 30 percent of all extractive exports during the period. Analysts believe that, if fully implemented, these reforms could help Senegal capture greater value from its mineral resources and reduce vulnerability to illicit financial flows.
However, experts caution that successful reform will require strong enforcement, particularly in regions where artisanal mining is a critical source of livelihood but largely operates outside formal oversight. For now, Faye’s administration maintains that the new trading centre and Mining Code will lay the foundation for a more transparent, accountable, and economically beneficial gold sector.