Sudan has passed a new regulation that allows private traders to export 70% of their gold, raising revenue by attracting foreign investment.

The new policy has been designed to address smuggling and attract foreign currency into the country’s treasury and fund government programmes, which help the country shift to democracy, reported Reuters.

Under the new law, the miners convert the foreign currency they earned into Sudanese pounds at the official exchange rate through the country’s central ban and then deposit the proceeds in local banks.

Previously, only Sudan’s central bank could export gold. It was the only body that was legally allowed to buy and export gold, as well as establish centres to purchase the precious metal from small-scale miners.

Acting central bank governor Badr al-Din Abdel Rahim Ibrahim was quoted by the news agency as saying that the bank would now completely end its gold purchases.

The current exchange rate values 45 Sudanese pounds to one dollar.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

According to The Media Line, the local miners noted that the official exchange rate is barely half of the black market rate, which means they will end up receiving fewer Sudanese pounds than they would if allowed to sell the remaining 30% of their production to the state, thereby, exchanging the currency on their own.

In 2018, an estimated 93t of gold was produced in Sudan, making it Africa’s third-largest gold-producing nation.

After South Sudan seceded from Sudan in 2011, the government lost its main source of foreign earning potential.