African Central Banks: Gold Buying & Selling Trends in 2025

African Central Banks and Gold: A Tale of Two Strategies

African central banks presented a mixed approach to gold in 2025, navigating currency pressures, external shocks, and shifting financial alignments. Data from the World Gold Council reveals diverging strategies across the continent, with some nations bolstering reserves while others tapped into them for immediate relief.

Egypt’s Gold Accumulation: Hedging Against Uncertainty

Egypt emerged as the continent’s leading gold buyer, a move that underscores a clear strategy: using gold to hedge against currency fluctuations and rising external financing risks. Cairo has steadily increased its gold holdings in recent years, coinciding with devaluations, IMF programmes, and balance-of-payments stress. This demonstrates a proactive approach to safeguarding economic stability in a volatile global landscape.

Ghana’s Gold Sales: Prioritizing Liquidity

In contrast to Egypt, Ghana became one of the world’s largest sellers of gold. This shift signals intense fiscal and liquidity pressures, where reserves are utilized for short-term relief rather than long-term stability. The World Gold Council highlights this as a departure from Accra’s earlier efforts to rebuild reserves, including the gold-for-oil programme.

A Continent Divided: Strategic Divergence

The contrasting actions of Egypt and Ghana exemplify a broader split in how African central banks respond to economic stress. For some, gold remains a crucial hedge against dollar dependence and global tightening. For others, it’s a liquid asset deployed to address immediate needs. This divergence highlights the unique economic challenges and priorities faced by different nations across the continent.

Beyond Reserves: Refining and Nationalisation

Africa’s gold strategy is also constrained by structural limitations. The continent largely exports raw gold, limiting the ability of central banks to capture greater economic value. Some nations are implementing policies to mandate domestic refining, aiming to retain more control over the value chain and support industrialisation.

Global Context: Africa’s Place in Central Bank Gold Demand

Globally, Africa’s presence in central bank gold markets remained modest in December 2025. Uzbekistan led buyers with 10 tonnes, followed by Kazakhstan (8 tonnes) and Poland (7 tonnes). China continued its buying streak for the 14th consecutive month, while smaller additions were made by Kyrgyz Republic, Czech Republic, Mongolia, and Indonesia. Singapore was the largest seller, offloading 11 tonnes.

Africa’s varied approaches demonstrate a continent balancing immediate economic pressures with long-term strategic goals. Policymakers increasing reserves view gold as insurance against financial shocks, while those selling prioritize liquidity. Simultaneously, the reliance on raw exports underscores the need to fully leverage the continent’s mineral wealth.

The World Gold Council data confirms that Africa’s gold story in 2025 wasn’t about scale, but about strategy.

Frequently Asked Questions

• Why are some African countries selling gold? They are prioritizing immediate liquidity to address fiscal and economic pressures.
• What is Egypt doing with its gold purchases? Egypt is using gold as a hedge against currency fluctuations and external financing risks.
• Is Africa a significant player in the global gold market? While its presence is growing, Africa’s share of central bank gold demand remains modest compared to other regions.

Explore further: World Gold Council – Central Bank Gold Statistics

What are your thoughts on the future of gold reserves in Africa? Share your insights in the comments below!