Egypt is moving closer to strengthening its position as a regional hub for the gold industry after the African Export-Import Bank (Afreximbank) announced plans to begin construction of a new gold refinery in the country by the end of this year, with investments ranging between $50 million and $100 million.
The refinery is expected to commence production between 2027 and 2028 and forms part of a broader strategy aimed at establishing an integrated gold ecosystem across Africa.
According to Ayman El-Zoghbi, Head of Intra-African Trade, Investment and Corporate Finance at Afreximbank, the project represents a strategic step toward transforming Egypt into a major center for gold refining, trading, and value-added manufacturing. He noted that the official launch of the refinery project is expected before the end of 2026, following the completion of site selection, partnership agreements, and implementation arrangements.
The refinery will process raw gold and convert it into internationally tradable bullion, helping African producers retain a larger share of the value chain while reducing reliance on refining centers outside the continent.
African Gold Bank Project
The refinery project is closely linked to the proposed African Gold Bank initiative, which is being developed through cooperation between the Central Bank of Egypt and Afreximbank.
In December 2025, both institutions signed a memorandum of understanding to explore the establishment of a Gold Bank Programme in Egypt. The initiative aims to create a comprehensive infrastructure for gold refining, secure storage, trading, financing, and reserve management across Africa.
The proposed platform is designed to support African central banks in strengthening their gold reserves while facilitating intra-African gold trade and reducing dependence on foreign financial and refining centers.
Building an Integrated African Gold Ecosystem
Afreximbank believes that a significant portion of Africa’s gold production continues to leave the continent in raw form before being refined and traded abroad, resulting in the loss of substantial economic value.
The Gold Bank initiative seeks to address this challenge by creating an integrated African gold value chain that covers mining, refining, storage, financing, and trading within the continent.
The project is currently undergoing a comprehensive feasibility study conducted in cooperation with global consulting firm McKinsey & Company. Further implementation details are expected to be announced during the third quarter of 2026.
Egypt's Growing Role in the Gold Sector
Egypt’s strategic geographic location, expanding mining industry, and improving financial infrastructure have positioned the country as a leading candidate to host the African gold platform.
The government has been actively promoting investments in mining and mineral processing while advancing exploration programs and encouraging the development of downstream industries that add value to mineral resources.
Industry observers view the refinery and Gold Bank projects as potentially transformative initiatives that could enhance Egypt’s role in regional gold trade while supporting broader African economic integration.
Continued Financial Support
El-Zoghbi also revealed that Afreximbank provided between $600 million and $700 million in financing to Egypt’s electricity and petroleum sectors during the first quarter of this year. The funding was directed toward raw material imports, payments to foreign partners, and strategic infrastructure projects.
Egypt currently accounts for approximately 25% of Afreximbank’s total loan portfolio. Since the bank’s establishment, cumulative financing to Egypt has exceeded $40 billion, while the outstanding portfolio stood at nearly $9 billion as of April, making Egypt the institution’s largest shareholder and one of its most important markets.
The bank also continues to support Egyptian companies executing projects across Africa and the Gulf region through guarantees and investment financing, helping local firms participate in multi-billion-dollar projects in Saudi Arabia, the United Arab Emirates, Oman, and Algeria.
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