Gold prices have soared to record highs in 2025, driven by global economic turmoil. Investors are flocking to gold as a stable asset amid rising tariffs and international conflicts. This trend is particularly significant in West Africa’s Sahel region, where countries like Burkina Faso, Mali, and Niger rely heavily on gold mining to support their economies.
These three nations produce around 230 tonnes of gold each year, worth approximately $15 billion at current market rates, according to the World Gold Council. However, this figure may be an underestimate due to the lack of records for small-scale and artisanal mining operations. Together, they surpass other African countries in gold production, making the Sahel a crucial player in the global gold market.
For the military governments in these countries, gold has become essential, especially as they face challenges from jihadist insurgencies and climate change. Beverly Ochieng, a senior researcher at Control Risks, noted that the high gold prices offer these governments a chance to benefit directly from this valuable resource.
In recent developments, Mali’s junta leader, Gen Assimi Goïta, has initiated the construction of a gold refinery with a Russian conglomerate, the Yadran Group, holding a minority stake. This refinery is expected to create 500 direct jobs and 2,000 indirect jobs. Similarly, Burkina Faso is setting up its first gold refinery and has established a state-owned mining company that requires foreign firms to give it a 15% stake in local operations and to share skills with local workers.
Despite the optimistic narrative promoted by the governments, the reality is more complicated. The region’s leaders need quick cash to fund military efforts against insurgents. In Mali, much of this military support has come from Russian mercenaries, including the Wagner Group and its successor, Africa Corps. While the junta denies their presence, these groups have been involved in military training in Burkina Faso.
As gold continues to shine in the market, the situation in the Sahel remains tense. The interplay between gold production, military funding, and foreign influence shapes the future of these nations, raising questions about who truly benefits from the wealth beneath their soil.