Why Gold Threatens Peace in South Sudan
As South Sudan's political crisis deepens and the risk of renewed civil war grows, the government is betting on gold as an economic engine. However, the article warns that without robust safeguards, ramping up gold production could fuel corruption, money laundering, and conflict. Gold is found in five of ten states, but mining is dominated by artisanal miners and smuggling is rampant. Newly approved gold refineries and a $2 billion gold-backed infrastructure deal present high risks for illicit financial flows. Oversight institutions are weak, and senior officials often co-own mining companies, ignoring conflict-of-interest rules. The article draws parallels to Sudan, where gold has become a financial lifeline for war. Expanding production without accountability reforms is likely to intensify corruption, tensions between large corporations and artisanal miners, and environmental degradation.
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