Economy
Mali’s Export Tax System Boosts Illicit Trade of Gold—Report
By Modupe Gbadeyanka
Mali’s taxation practices applicable to gold exports have turned the country into West Africa’s illicit gold trading hub, Partnership Africa Canada said in a report published on Wednesday.
The report, The West African El Dorado: Mapping the Illicit Trade of Gold in Côte d’Ivoire, Mali and Burkina Faso, investigates challenges in the governance of artisanal gold mining in the three countries—and the vulnerabilities posed by the illicit trade of gold on the region.
The investigation finds that all countries have taken important steps towards encouraging legal trade of artisanal gold—a sector which employs an estimated three million miners in Côte d’Ivoire, Mali and Burkina Faso—such as the harmonization of export taxes at 3%. Yet, Partnership Africa Canada found that Mali’s application of export taxes to only the first 50kg of gold per month is promoting smuggling, as traders bring gold over the border into Mali to get a large tax break.
“Mali’s harmful implementation of tax laws is cause for concern in the region, as it actively drives the illicit trade of gold. Mali’s neighbours are missing out on important revenue from taxes as traders smuggle gold over borders to take advantage of the tax break,” said Joanne Lebert, Partnership Africa Canada’s Executive Director.
“Importantly, export statistics from Mali are painting a worrying trend and it is up to international refiners and buyers to exercise additional due diligence on gold exported from the country to ensure the gold is clean,” added Lebert.
An analysis of gold production and trade statistics in Mali, as well as declared imports from the United Arab Emirates of Malian gold spotlighted major inconsistencies in the declared data. Over a four year period, UAE imports of Malian gold successively exceeded Mali’s entire gold production. Mali declared 40 tonnes of gold produced in 2013—while UAE declared 49.6 tonnes imported. In 2014, the figure rose with Mali declaring production at 45.8 and UAE declaring 59.9 in Malian gold imports.
Since much of Mali’s industrial production is exported to Swiss and South African refiners, Partnership Africa Canada found little explanation for the discrepancy. The extent of the illicit gold trade in Mali raises concerns about regional peace and stability and highlights the need for refining centres to exercise additional due diligence on imports.
Partnership Africa Canada calls on Mali to undertake a comprehensive review of its tax regime to address the loopholes that make it magnet for gold produced in West Africa. Additionally, the report calls on the Dubai Multi-Commodities Centre in the UAE to ban hand-carried imports of gold and demonstrate greater oversight over gold imports.
The report also calls on gold producing countries in West Africa to harmonize policies and practices in the gold sector through a Regional Approach, similar to that currently being implemented in the Mano River Union on diamond governance.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc again pulled down the NASD Over-the-Counter (OTC) Securities Exchange on Thursday, August 20, by 1.11 per cent.
The securities depository company further lost N5.93 during the trading session to close at N82.20 per share versus the midweek closing price of N88.12 per share.
As a result, the NASD Security Index (NSI) slid by 48.25 points to 4,284.84 points from 4,333.09 points, and trimmed the bourse’s market capitalisation by N28.96 billion to N2.571 trillion from N2.60 trillion.
During the trading day, the price of Afriland Properties Plc went up by 50 Kobo to N20.50 per unit from N20.00 per unit.
Yesterday, the volume of securities transacted by investors slumped by 85.1 per cent to 112,218 units from 747,429 units, the value of securities fell by 95.2 per cent to 4.6 million from 9.4 million, and the number of deals decreased by 40.5 per cent to 25 deals from 42 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units exchanged for N6.5 billion, and CSCS Plc with 79.9 million units worth N5.8 billion.
GNI Plc also finished the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units transacted for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Adedapo Adesanya
The Naira improved its value against the United States Dollar by N2.78 or 0.21 per cent to N1,347.63/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, August 20, from the previous day’s N1,350.41/$1.
Also, the domestic currency gained 43 Kobo against the Pound Sterling in the official market yesterday to trade at N1,838.70/£1 compared with the preceding session’s N1,839.13/£1, but lost 66 Kobo against the Euro to finish at N1,574.97/€1, in contrast to Wednesday’s N1,574.31/€1.
At the GTBank forex counter, the Naira depreciated against the US Dollar yesterday by N1 to close at N1,358/$1 versus the previous session’s N1,357/$1, while at the parallel market, it remained unchanged at N1,390/$1.
Daily FX update released by the Central Bank of Nigeria (CBN) showed that interbank turnover at the official window increased by 0.22 per cent to $371.788 million from $370.98 million, with the number of deals up to 134 from 100.
Transactions were consummated between N1,347 and N1,351.5000 during the trading session.
As for the cryptocurrency market, Bitcoin (BTC) topped $75,000 in the latest rally amid euphoria over a US Treasury liquidity signal from the buyback plan, rising by 8.8 per cent to $75,371.36.
The US Treasury Department has decided to at least double liquidity-support buyback operations for longer-dated nominal coupon securities. This applies in the 10- to 30-year segment.
Additional catalysts included the latest crypto proposal by the US Securities and Exchange Commission (SEC), while President Donald Trump, after meeting with prominent crypto executives, urged Congress to pass what he calls a fair version of the Clarity Act before year-end.
Further, Ripple (XRP) rose by 18.7 per cent to $1.30, Cardano (ADA) grew by 13.9 per cent to $0.2086, Dogecoin (DOGE) improved by 10.8 per cent to $0.0826, Solana (SOL) expanded by 6.5 per cent to $90.37, Binance Coin (BNB) soared by 6.3 per cent to $664.00, Ethereum (ETH) jumped by 5.2 per cent to $2,363.26, and TRON (TRX) climbed by 1.5 per cent to $0.3379, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Dipo Olowookere
For the eighth straight session, the Nigerian Exchange (NGX) closed lower, losing 0.32 per cent at the close of business on Thursday as a result of continued sell-offs.
Yesterday, the financial and energy sectors came under selling pressure as investors’ appetite for domestic equities waned, with attention turning to the 2027 presidential campaigns, which kicked off on Wednesday.
The energy index shed 2.49 per cent, the insurance sector depreciated by 0.79 per cent, and the banking segment declined by 0.41 per cent. But the consumer goods space gained 0.10 per cent, while the industrial goods counter closed flat.
When the market closed for the day, the All-Share Index (ASI) contracted by 712.67 points to 240,037.80 points from 240,750.47 points, and the market capitalisation decreased by N439 billion to N154.978 trillion from N155.417 trillion.
International Energy Insurance slumped by 9.85 per cent to N4.30, Coronation Insurance dropped 9.84 per cent to trade at N2.20, Fortis Global slipped by 9.76 per cent to N1.85, AVA Capital crashed by 7.89 per cent to N7.00, and Zichis shrank by 7.36 per cent to N17.00.
On the other side, Haldane McCall rose by 9.38 per cent to N3.85, Trans-Nationwide Express jumped by 8.90 per cent to N3.06, McNichols appreciated by 8.33 per cent to N5.20, Cutix gained 2.56 per cent to close at N2.40, and Veritas Kapital expanded by 1.52 per cent to N1.34.
Business Post reports that Customs Street recorded 14 advancing stocks and 29 declining stocks, representing a negative market breadth index and weak investor sentiment.
A total of 2.9 billion shares worth N34.0 billion were transacted in 34,725 deals during the session versus the 1.2 billion shares valued at N37.8 billion traded in 34,546 deals at midweek. This showed that the trading value moderated by 10.05 per cent, while the trading volume and number of deals increased by 141.67 per cent and 0.59 per cent apiece.
Fortis Global Insurance was on top of the activity chart yesterday, with a turnover of 2.6 billion equities valued at N5.2 billion. Sterling Holdings exchanged 28.1 million shares worth N211.4 million, Trans-Nationwide Express transacted 21.7 million stocks for N66.2 million, UBA sold 17.9 million equities worth N803.7 million, and First Holdco traded 15.7 million shares valued at N2.0 billion.
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