RIYADH: The Central Bank of Egypt and the African Export–Import Bank have signed a memorandum of understanding to establish a pan-African Gold Bank, a strategic initiative aimed at formalizing gold value chains across the continent.
The agreement is expected to help strengthen central bank reserves and reduce Africa’s reliance on foreign refining and trading hubs, according to a statement.
The initiative aligns with Egypt’s strategy to expand strategic partnerships and deepen cooperation with African nations across multiple sectors, while also supporting Afreximbank’s goal of advancing value addition and the processing of strategic minerals throughout Africa.
It also comes as Egypt’s revenues from mineral wealth development surged 131 percent year on year to nearly $446 million in fiscal year 2024/25, driven by strong growth in gold and silver production.
George Elombi, president and chairman of the Board of Directors of Afreximbank, said: “This signing ceremony may appear simple, yet it has tremendous economic consequences for our continent. We make a bold declaration that Africa's gold must serve African people.”
He added: “This MoU, which is part of Afreximbank’s vision to ensure Africa’s resources benefit Africans, creates an African Gold Bank that will help us fundamentally alter the way we extract, refine, manage, value, store, and trade our gold resources, with the primary aim of retaining value on the continent.”
He said that steadily building gold reserves—along the lines of other major economies — would strengthen the continent’s resilience, reduce exposure to external shocks, bolster currency stability and convertibility, and help generate wealth within Africa.
Central Bank of Egypt Governor Hassan Abdalla said the initiative lays the foundation for a broader pan-African framework, with the potential to involve African governments, central banks, and key market participants over time.
He emphasized Egypt’s strong commitment to supporting economic integration across Africa, adding that the country’s potential selection as a hub — subject to feasibility study results and necessary approvals — reflects the confidence African institutions place in its ability to lead major continental projects.
Abdalla also noted that Egypt’s strategic location at the crossroads of Africa, the Middle East, and Europe positions it well to serve as a central hub for regional gold trade and financial innovation.
Under the MoU, the two institutions will jointly conduct a feasibility study to assess the technical, commercial, and regulatory requirements for establishing a comprehensive Gold Bank ecosystem within a designated free zone in Egypt, with participation from African countries.
The proposed plan includes the establishment of a globally accredited refinery, secure storage facilities, and related financial and trading services.
The initiative also seeks to broaden its reach across Africa by engaging governments, central banks, mining companies, and industry stakeholders to enhance institutional cooperation, standardize best practices, and promote sustainable gold trade and related services across the continent.
The partnership reflects a shared vision between the Central Bank of Egypt and Afreximbank to promote local manufacturing, support sustainable growth, and strengthen regional financial and trade ties, contributing to a more integrated and resilient African economy.
