Afreximbank to Establish Pan‑African Gold Bank

The African Export‑Import Bank and the Central Bank of Egypt have taken a major step toward laying the foundations for a pan‑African Gold Bank, a strategic initiative aimed at transforming the continent’s gold sector and strengthening its economic resilience. The move is part of Afreximbank’s broader effort to ensure that Africa’s natural resources directly benefit its people and economies.

Under the agreement signed on December 30, 2025, the two institutions will collaborate on commissioning a comprehensive feasibility study to explore the technical, regulatory and commercial framework required to establish an integrated Gold Bank ecosystem. The proposed institution is expected to include key components such as an internationally accredited gold refinery, safe vaulting infrastructure and related financial and trading services, all sited within a designated free zone in Egypt.

Afreximbank President and Chairman of the Board, Dr. George Elombi, described the initiative as a bold declaration that “Africa’s gold must serve African people,” emphasising the need to fundamentally change how the continent’s gold resources are extracted, refined, valued, stored and traded. Elombi highlighted that building up gold reserves — as many major economies have done — would enhance Africa’s resilience to external shocks, support currency stability and create wealth within the continent.

Egypt’s central role in the project was underscored by Hassan Abdalla, Governor of the Central Bank of Egypt, who said the initiative aligns with Cairo’s vision of expanding strategic partnerships and fostering economic integration among African states. Abdalla pointed out Egypt’s strategic geographic location at the crossroads of Africa, the Middle East and Europe as a potential advantage in anchoring the gold banking hub, though this will ultimately depend on the outcomes of the feasibility study and subsequent regulatory approvals.

Gold has long been a significant natural resource for many African countries, yet much of its economic value has historically been lost through informal mining, unregulated exports and reliance on foreign refineries and trading hubs. Experts estimate that tens of billions of dollars’ worth of gold leave Africa annually through informal channels, depriving governments of revenue, weakening foreign exchange positions and limiting value addition opportunities. The proposed Gold Bank seeks to formalise these value chains and keep greater economic benefits within the continent.

The initiative comes at a time when African economies are seeking ways to bolster external reserves and reduce vulnerability to global economic volatility. By institutionalising gold as a financial asset and anchoring its refining, storage and trading on the continent, the Gold Bank could play a role in strengthening central bank reserves and improving macroeconomic stability. For many African countries, gold reserves are a crucial buffer against balance of payments pressures and currency fluctuations, and expanding those reserves through domestic mechanisms would be a significant shift from current practices.

If fully implemented, the Gold Bank programme could serve as a continental platform for gold-related financial services, enabling African governments, central banks, miners, refiners and traders to collaborate more effectively. It could also help stimulate investment in the downstream segments of the gold value chain, including technology transfer for refining and certification processes. Efforts to harmonise regulatory standards and best practices across participating countries will likely form a key part of implementation discussions.

While the memorandum represents a crucial first step, it is fundamentally a feasibility and planning phase rather than the immediate launch of a functioning institution. Both Afreximbank and the Central Bank of Egypt have committed to engaging with broader stakeholders — including African governments, central banks and industry players — as part of the preparatory process. This engagement will be critical to addressing logistical, legal and economic challenges inherent in building a multi-country banking institution.

The Pan‑African Gold Bank initiative also reflects a growing trend among African policymakers to assert greater control over the continent’s resource wealth. Across sectors such as oil, minerals and agriculture, there is increasing emphasis on value addition, local beneficiation and economic sovereignty. Proponents of the gold bank argue that it could serve as a model for similar efforts in other mineral commodities, driving broader industrialisation and export diversification agendas.

Critics, however, caution that successful implementation will require robust governance frameworks, significant infrastructure investment and clear legal agreements among participating nations. Ensuring transparency, preventing illicit gold flows and harmonising regulatory norms are among the challenges that stakeholders will need to address as the project moves forward. Nonetheless, the initiative is widely seen as a bold attempt to shift Africa’s gold economy from raw export dependency toward a more value-retentive and strategically integrated sector.

As the feasibility study progresses, attention will focus on how quickly and effectively the proposed gold bank can be operationalised. If realised, the pan-African Gold Bank could mark a transformative chapter in the continent’s efforts to harness its natural resource wealth for sustainable economic development and financial resilience.