Towards a Productive Sovereign Bank: Why Do We Need a “Sudanese Gold Bank” Now?

Mohamed Al-Shater Al-Amin
Sudan possesses enough gold to become a major global player in the sector: reserves exceeding 1,550 tonnes and annual production ranging between 80 and 100 tonnes. Yet instead of serving as an economic lifeline, gold has become a source of continuous economic haemorrhage.
Between 60% and 80% of production is smuggled out of the country every year. There is no fair domestic pricing mechanism and no linkage between mineral wealth and monetary policy. The outcome is well known: billions are lost, inflation worsens, and the parallel market continues to swallow up the formal economy.
The problem is not merely “smuggling”. The deeper problem is that we treat gold as a raw commodity, exporting it by the kilogramme only to import it again in the form of value-added products. What is needed is not a mining police force, but a new economic mindset. What is needed is a “Sudanese Gold Bank”.
The Global Lesson: Sovereignty + Confidence + Liquidity
Successful international experiences offer clear lessons. Türkiye brought 600 tonnes of gold out from “under the floorboards” by offering competitive prices and a simple mobile application. The United Arab Emirates transformed Dubai into a global centre for the trade and manufacture of gold. China linked gold directly to its monetary reserves.
Venezuela, by contrast, failed when transparency was absent, and management became politicised.
Sudan, however, is a special case. Around 80% of our gold production comes from artisanal mining, while the country also faces the challenges of sanctions and organised smuggling. We must therefore add two further pillars: the management of artisanal mining and sovereign security for gold assets.
A Bank That Does Not Merely Buy Gold, but Creates a Market
We propose establishing a “Sudanese Gold Bank” under an independent law, supervised by the highest sovereign authority. It should not be subordinate to a ministry, nor should it be a branch of the Central Bank of Sudan. Rather, its role should complement that of the Central Bank: the Central Bank would remain the monetary authority, while the Gold Bank would serve as the country’s investment and reserve arm.
The Proposed Structure: From the Mine to the Exchange
1. Mining: Mobile purchasing centres that reach artisanal miners at their locations and purchase their gold at competitive, real-time prices.
2. Refineries and industry: Moving away from exporting raw gold towards minting bullion and gold coins, as well as developing gold-based medical industries.
3. Vaults: A strategic reserve distributed domestically and abroad, with appropriate insurance and protection.
4. Fintech: Digital gold wallets, blockchain-based traceability, and a network of “Gold ATMs” to facilitate savings.
5. Trading: A Sudanese gold exchange linked to Dubai and Istanbul.
6. Banking services: Gold accounts, gold-backed financing, and Islamic sukuk.
7. Security and compliance: Anti-money laundering measures and cybersecurity.
8. International relations: Branches in Dubai, Riyadh and London.
9. Headquarters and regional presence: Headquarters in Port Sudan, supported by operations across six regions and a backup data centre located outside the country.
Financing and Risks
The estimated cost of the first three-year phase would be US$350 million.
Of this amount, US$200 million would come from the state and the sovereign wealth fund, US$100 million through Gulf partnerships, and US$50 million through “Gold Mudarabah Sukuk” offered for public subscription.
To undermine the parallel market, three things are essential: transparent real-time pricing, immediate payment to miners, and sovereign protection of gold assets, including safeguards against seizure or attachment abroad.
What Could We Achieve Within Five Years?
If the bank operates effectively, the following targets would be achievable:
Channel 50% of artisanal gold production through official purchasing mechanisms.
Accumulate 100 tonnes of gold as a sovereign reserve.
Increase the proportion of gold exports consisting of manufactured products from 10% to 40%.
Provide partial backing for the Sudanese pound, helping to curb inflation.
Move from exporting US$1 billion worth of raw gold to generating US$3 billion in value-added exports.
In other words, Sudan could recover a substantial share of the US$40 billion currently circulating within the parallel economy.
Six Steps to Begin Immediately
1. Enact the necessary legislation within six months, with guarantees of complete institutional independence.
2. Establish the Sudanese Gold Academy to train specialists in geology, finance and compliance.
3. Establish a research centre dedicated to pricing and monitoring international gold markets.
4. Create an economic security operations room to monitor smuggling in real time.
5. Ensure complete digitalisation from day one: no paperwork, no delays and no opportunities for counter-level corruption.
6. Establish a genuine operational partnership with the private sector — not merely a partnership of slogans.
Conclusion
The Gold Bank would not be a conventional bank. It would be a “state within the state”, whose mission would be to transform a dormant asset into productive capital.
The formula for success is straightforward:
40% governance + 30% digitalisation + 20% fair pricing + 10% security.
Sudan does not need a miracle. It simply needs to take control of its gold, price it properly, refine and utilise it, and protect it. Only then can gold be transformed from a burden into an instrument of sovereignty.
This is the sovereign bank that Sudan deserves.

Shortlink: https://sudanhorizon.com/?p=16831