MADAGASCAR’S central bank governor Aivo Andrianarivelo is leading efforts to combat gold smuggling as criminal gangs use aircraft and helicopters to traffic an estimated 20 tons annually, worth approximately $2.8bn, said the Financial Times.
The problem has intensified as gold prices soared more than 60% to record highs above $4,300 per ounce, prompting central banks worldwide to establish domestic purchasing programmes aimed at disrupting illicit flows.
Countries including Ecuador, Philippines, Ghana and Mongolia have launched initiatives to regulate artisanal mining sectors plagued by environmental destruction, water contamination and links to human trafficking and conflict financing, said the newspaper.
David Tait, CEO of the World Gold Council, estimated that roughly 1,000 tons of gold produced yearly by small-scale miners enters illicit channels, with potentially half reaching criminal networks. “It could be apocalyptic,” he warned of rising prices enabling greater criminal revenues and environmental harm.
Ghana established its GoldBod buying agency in 2025 as mercury pollution contaminated over 60% of the nation’s waterways. Ecuador, where drug cartels have entered gold mining, is expanding its 2016 programme with a new buying station opening in Zamora.
Madagascar’s central bank plans to quadruple its gold reserves from one to four tons whilst purchasing from artisanal miners. However, gold remains absent from official export statistics dominated by vanilla, cloves and nickel.
Verification challenges persist, with experts citing failures in Sudan and Ethiopia where illegal ore entered central bank purchases. Mongolia’s three-decade programme successfully eliminated mercury use, whilst Ecuador tests isotope scanning technology to authenticate ore origins and improve traceability standards, said the Financial Times.
