The surging gold prices in 2025 have become a double-edged sword for West African countries like Burkina Faso, Mali, and Niger, as governments rely on this precious metal to fund military operations against jihadist groups while conflict and human rights abuses escalate.
The Dark Reality of Gold: Conflict and Commerce in West Africa
The Dark Reality of Gold: Conflict and Commerce in West Africa
Rising gold prices are intertwined with conflict in West Africa, where gold mining supports military regimes while fueling insurgencies.
Amidst the chaos of the global economy, gold has shone resplendently in 2025, reaching unprecedented prices. With tariffs and international tensions leading investors to seek out this stable asset, the resulting demand comes at a dire cost for West African nations. In the Sahel region, Burkina Faso, Mali, and Niger rely on gold extraction as a lifeline for their military governance. These juntas grapple with rampant jihadist insurgencies, strained diplomatic relations, and the disastrous effects of climate change.
Beverly Ochieng, a senior researcher at Control Risks, explains, "Because gold prices have been at a historic high… the military governments are hoping that they will be able to benefit directly." Collectively, Burkina Faso, Mali, and Niger produce approximately 230 tonnes of gold annually, valued around $15 billion at current prices. However, the figure likely underestimates true production due to the informal nature of artisanal and small-scale mining.
These countries have positioned themselves as key contributors to the African gold market. Although authorities tout that gold revenues enhance national "sovereignty," the reality is complicated by growing Russian interests in the region. The junta in Mali, led by Gen Assimi Goïta, has engaged in partnerships with Russian firms like the Yadran Group to establish gold refineries, creating jobs while simultaneously shifting operating stakes away from Western firms.
Public sentiment regarding leadership has turned into a bizarre spectacle, as AI-generated media campaigns glorify the military rulers, casting them as heroic figures amidst a dangerous and complex landscape. Despite these narratives, the underlying truth is grim. The juntas require funds to support military operations, often engaging mercenaries associated with Russia, whose presence is met with public denial from local authorities.
Mali's astronomical military spending—22% of the national budget by 2020—mirrors the growing threat posed by jihadist groups linked to al-Qaeda and Islamic State (IS). Human Rights Watch reports significant atrocities committed by both governments and mercenaries against civilians, exacerbating tensions and leading to further local support for insurgents.
A competitive struggle ensues for small-scale gold mining sites, where unaffiliated armed militants—including jihadists—actively vie with national governments for control. A 2023 UNODC report highlights the central role informal gold production plays in financing these violent groups at a time when gold prices fuel their ambitions.
Yet, while gold mining thrives, artisanal miners see little benefit from rising prices. For instance, a miner in northern Kidal, Mali, noted that despite the price boom, wages from mining have stagnated, revealing the exploitative conditions endemic to the industry.
Concerns persist about gold's evolution into a new conflict commodity in Africa, reminiscent of the blood diamond crises of the past. Historical interventions, like the establishment of the Kimberley Process, succeeded in addressing diamond-related atrocities, but attempts to regulate blood gold have faltered due to ineffective enforcement and lax ethical standards.
Dr. Alex Vines of Chatham House highlights the challenges in tracing gold's origin, noting that while diamond certification systems exist, no comparable technology can reliably track the path of gold nuggets. This barrier, paired with the ongoing reliance of Sahel governments on gold revenue, suggests that the trade will persist devoid of accountability.
Consequently, the trade in gold has the potential to continue enriching certain governments while perpetuating suffering and violence in affected communities, demonstrating that in the region's pursuit of prosperity, the costs may be borne by the most vulnerable.
