According to billionaire investor, Naguib Sawiris, Egypt’s vast mineral wealth is being squandered due to illicit mining operations, which are weakening investment and preventing the country from fully benefiting from its tremendous natural resources.

Sawiris, who according to Bloomberg’s Billionaire Index is Egypt’s richest man and Africa’s sixth richest person, recently went to social media to vent his dissatisfaction with what he saw as the continuing waste of Egypt’s mining potential.

He said that unlawful prospecting operations, some purportedly involving foreign nationals, are abusing the country’s resources outside of legal frameworks.

“Unfortunately, many of Egypt’s mining wealths are being continuously squandered due to random and illegal prospecting activities by those outside the law, and unfortunately, some of them are non-Egyptians,” he relayed via X.

“Most mining companies in Egypt suffer from illegal practices that escalate to threats with weapons; and to this day, the state has not addressed the matter in the required manner, which affects the general reputation of investment in Egypt and wastes mineral wealths from gold to silver to rare minerals that the world is now competing over, depriving Egypt from being one of the largest countries in its gold reserves!”

The timing of Sawiris’ comments is noteworthy, considering that global demand for key minerals is skyrocketing as nations scramble to secure supplies of gold, silver, rare earth elements, and other essential resources required for contemporary technology and energy transition initiatives. According to Sawiris, Egypt risks losing this potential if illicit mining operations continue unabated.

Back in March, reports indicated that Egypt’s military had increased operations against illegal gold extraction near its southern border with Sudan, raising concerns that instability in the neighbouring country is spreading across the border. Egypt took significant action to protect its national security and sovereignty since the Sudanese Civil War began in April 2023. Cairo authorities noted that they had stepped up surveillance and soldier presence along the 1,276-kilometer border with Sudan.