EU imposes sanctions on gold trade with Sudan

On Monday, the European Union (EU) adopted a ban on gold trade with Sudan. The sale, supply and transfer of gold of Sudanese origin will be prohibited in future. The sanctions, which came into force on Wednesday, also prohibit the export of mercury and cyanide used in gold mining and processing to Sudan, as well as related technical and financial support and brokering services. Exceptions apply to goods intended for humanitarian aid and for responding to health emergencies and disasters. According to the EU Council, the aim of the measures is to curb the financing of the civil war, which has been ongoing since April 2023, through the gold trade. For the first time, the sanctions are directed not only against individuals and organisations, but also specifically against economic structures. They build on the sanctions framework adopted in October 2023.

Opinions differ on the effectiveness of the sanctions. Critics point out that the EU is neither a major market for Sudanese gold nor a significant supplier of mercury and cyanide. Sudan exports its gold primarily to the United Arab Emirates (UAE), as well as to Oman, Qatar, Turkey and Egypt, amongst others. According to experts, a large proportion of the gold also reaches the UAE via smuggling routes through Egypt, Libya and Chad, and from there enters the global market. Due to these trade patterns, it is often difficult to trace the origin of the gold. Other observers nevertheless believe that indirect effects are possible. Companies outside the EU, too, could restrict or cease trade in the face of additional compliance requirements and legal uncertainties. However, many analysts believe that, in order to deal a lasting blow to the warring parties’ financing structures, what is needed above all is greater transparency along international supply chains, as well as stronger political pressure on key transit and trading partners, particularly the UAE.

Since South Sudan gained independence in 2011 – and the associated loss of a large proportion of its oil revenues – gold has been one of the country’s most important sources of income and, according to human rights organisations, also serves as a key source of funding for both warring factions. The civil war, which has been ongoing since 2023, arose from a power struggle between General Abdel Fattah al-Burhan, Commander-in-Chief of the Sudanese Armed Forces (SAF), and Mohamed Hamdan Dagalo (also known as ‘Hemedti’), leader of the Rapid Support Forces (RSF). Whilst the RSF, which according to official UN reports is supported by the UAE, predominantly controls gold mines in Darfur and Kordofan, the SAF – which receives support from Egypt and Turkey, amongst others – maintains control over mining areas in the North and East of the country. Most recently, the situation has continued to escalate, particularly around the strategically important town of El-Obeid in North Kordofan. This town is currently under the control of the SAF, but is under siege by the RSF and is being attacked by drones. UN High Commissioner for Human Rights Volker Türk recently warned of an impending “new human rights catastrophe” and a wave of atrocities in the embattled city. In a joint statement on Wednesday, the G7 foreign ministers and the EU’s High Representative for Foreign Affairs called on the RSF and allied armed groups to cease all actions that could lead to further atrocities or endanger the civilian population in El-Obeid. At the same time, they called on the SAF to allow humanitarian aid through and to participate in talks.

The conflict between the warring parties also intensified on a legal front. On Sunday, a court in Port Sudan sentenced RSF leader Dagalo and 15 others, including Dagalo’s brother and deputy, to death in absentia for the murder of a regional governor in 2023 and for war crimes in Darfur. The court announced that it would refer the case to the Supreme Court and request, via Interpol, the arrest and extradition of those convicted. This is the first verdict against the RSF leadership since the outbreak of the civil war.

Egyptian Parliament strengthens economic powers of the Future of Egypt Authority

On Tuesday, the Egyptian Parliament passed a law that significantly expands the powers of the state-run Future of Egypt Authority (FOE) in key economic sectors. The authority, which was previously attached to the Ministry of Defence, will become administratively, financially and technically independent and will in future report directly to President Abdel Fattah Al-Sisi. The parliamentary decision was taken despite repeated calls from the International Monetary Fund (IMF), as part of the ongoing aid programme, to reduce state influence over the Egyptian economy. The bill is now before Al-Sisi for ratification.

The Act redefines the FOE’s remit and consolidates numerous economic responsibilities within the authority. These include, amongst other things, the import of strategic raw materials, as well as responsibilities in the areas of agriculture, fisheries, investment, property development and land allocation. In addition, it will have responsibilities relating to licensing procedures, asset management and tax collection. Furthermore, the FOE will be given responsibility for so-called development zones, where major development and investment projects are to be coordinated in future. To finance the FOE’s expanded activities, the Act also establishes the ‘Pyramids of the Nile’ sovereign wealth fund and a services fund. The FOE, better known in Egypt as Mostaqbal Misr, was founded in 2017 as part of a government project to develop new agricultural land. In recent years, it has steadily expanded its remit and taken on responsibilities in strategic economic sectors.

The passing of the bill was not without controversy. During the parliamentary deliberation process, the original draft was amended on several occasions. The bill now provides for greater parliamentary oversight in the designation of development zones, as well as additional supervisory and transparency mechanisms. Bahaa al-Ghannam, the Executive Director of the FOE, defended the reorganisation of the authority, arguing that the reform would improve governance structures and encourage investment without displacing private companies. Critics, however, doubt that the reform will contribute to a greater role for the private sector and warn against a further consolidation of state influence over key economic sectors.

Egypt’s current programme with the International Monetary Fund (IMF) comprises an Extended Fund Facility (EFF), which was approved in December 2022 as a 46-month programme and expanded in March 2024 from an initial US$3 billion to US$8 billion, as well as a Resilience and Sustainability Facility (RSF). At the end of June 2026, the IMF and Egypt reached an agreement on the upcoming reviews under the current financing arrangements. Subject to the approval of the IMF Executive Board, this could result in a further US$1.6 billion being released. Despite the impact of regional conflicts, the IMF noted Egypt’s generally positive economic performance and highlighted progress in terms of growth, fiscal performance and macroeconomic stabilisation. According to the IMF, real gross domestic product grew by 5 per cent in the third quarter. At the same time, the Fund called for further reforms, including a consistent fight against inflation, the maintenance of a flexible exchange rate and the strengthening of the private sector’s role. It remains to be seen whether and how the reorganisation of the FOE will affect future cooperation with the IMF.

In other news

African stars also excelled off the pitch at this World Cup. With their joint official World Cup song “Dai Dai”, Nigerian Afrobeats musician Burna Boy and Colombian singer Shakira reached number one on the Billboard Global 200, topping one of the world’s leading streaming and sales charts. Burna Boy is the first African artist to achieve this. In addition, “Dai Dai” has now spent a third consecutive week at number one on the Billboard Global Excl. U.S. chart and climbed 12 places to number 55 on the US Billboard Hot 100. The song’s title comes from Italian and colloquially means “Let’s go!” or, in a sporting context, “Give it your all!”. In terms of its message, “Dai Dai” encourages listeners not to give up in the face of setbacks and challenges, and to strive for success together. At the same time, the song aims to bring people together worldwide and features lyrics in Japanese, English, Spanish and French. Burna Boy performed the song alongside Shakira at the opening ceremony of the FIFA World Cup in Mexico City. He is also set to perform during the half-time show of Sunday’s final, marking the first time in FIFA World Cup history that a half-time show has been staged during the tournament’s showpiece match.