Why Commodity Scams Are So Widespread
Africa supplies much of the world’s raw commodities. Unfortunately, fraudsters exploit this by posing as exporters, intermediaries, or local agents. International buyers often fall victim because:
-
Deals are priced below market rates to attract quick decisions.
-
Documentation looks authentic but is forged.
-
Companies lack proper licensing with government regulators.
-
Pressure tactics are used — “act now or lose the deal.”
Every year, millions of dollars are lost to fake deals involving gold, cocoa, oil, timber, and diamonds.
Common Types of Commodity Scams
1. Gold Export Fraud
-
Fake gold exporters claim to sell directly from Ghana, Sierra Leone, or Mali.
-
Scammers avoid the Precious Minerals Marketing Company (PMMC) process.
-
Victims wire money overseas and the gold never arrives.
2. Cocoa and Agricultural Scams
-
Fraudsters pose as licensed cocoa or cashew exporters.
-
Often they show fake Ghana Cocoa Board (COCOBOD) approvals.
-
Containers shipped may be empty or filled with low-value material.
3. Oil & Petroleum Fraud
-
Advance-fee scams promising access to crude allocations in Nigeria.
-
Use of forged NNPC (Nigerian National Petroleum Corporation) documents.
-
Victims asked to pay “lifting fees” or “logistics costs.”
4. Timber & Natural Resources Fraud
-
Fake exporters promise teak, mahogany, or rosewood.
-
Unlicensed operators offer export contracts without Forestry Commission permits.
5. Diamond & Mineral Scams
-
Especially in Sierra Leone and DRC.
-
Scammers show fake Kimberley Process certificates.
-
Victims pay upfront for rough stones that never materialize.
Red Flags to Watch Out For
-
Requests for upfront payments before proper documentation.
-
Transactions routed outside of licensed government channels.
-
Sellers avoiding escrow agreements or international arbitration clauses.
-
Communication via personal emails or WhatsApp only.
-
Deals that appear too good to be true.
How Clinton Consultancy Protects Clients
-
Licensing Verification: Direct checks with Minerals Commission, COCOBOD, NNPC, Forestry Commissions, and Kimberley Process authorities.
-
Company Due Diligence: Registrar of Companies extracts, beneficial ownership reviews, sanctions lists.
-
Contract Review: Drafting protective agreements with escrow, dispute-resolution clauses, and international enforceability.
-
Red-Flag Reports: Quick-turnaround memos identifying risks.
-
Dispute Resolution: Litigation, arbitration, and recovery if fraud occurs.
Why Clinton Consultancy
-
Sector Experience: Extensive work in gold, cocoa, timber, oil, and diamond disputes.
-
Pan-African Reach: Active in Ghana, Sierra Leone, Nigeria, Kenya, South Africa.
-
Government Links: Regular liaison with PMMC, COCOBOD, EFCC, CSA, EOCO, and other regulators.
-
Fixed Fees: Transparent packages for due diligence and contract drafting.
FAQs
Q: Can I trust a “licensed exporter” who contacts me directly?
Only if verified through the appropriate regulator. Many scams involve fake or expired licences.
Q: What’s the safest way to pay?
Escrow agreements, not direct wire transfers. Avoid cash or personal accounts.
Q: What if I already sent money?
We can assist with filing complaints, asset tracing, and recovery through local authorities.
Q: Do I need to be in Africa to do due diligence?
No. We verify licences and file checks on your behalf.
Call to Action
Looking at a commodity deal in Africa? Don’t risk falling victim to fraud. Clinton Consultancy verifies exporters, conducts due diligence, and structures protective contracts before you send money.
WhatsApp: +233 27 252 2695
Email: amanda@clintonconsultancy.com
