Egypt Plans to Establish a Pan-African Gold Bank

The Central Bank of Egypt signed a memorandum of understanding on Monday with the African Export-Import Bank (Afreximbank) aimed at establishing a specialized gold bank at the continental level, in a strategic move designed to strengthen central bank reserves, reduce reliance on gold refining and trading centers outside Africa, and formalize the African gold production and trading ecosystem.

Under the memorandum, the two sides agreed to prepare a comprehensive feasibility study covering all technical, commercial, and regulatory aspects, paving the way for the establishment of an integrated gold bank system within one of Egypt’s free zones. The project is set to include an internationally accredited gold refinery, secure gold storage facilities, as well as the provision of specialized financial services and advanced gold-related trading mechanisms.

The initiative, led by the Central Bank of Egypt and Afreximbank, aims to gradually expand to encompass countries across Africa by engaging governments, central banks, mining companies, and institutions involved in the gold industry. This approach seeks to unify practices, enhance institutional cooperation, and facilitate sustainable trade in gold and related services within the continent.

Central Bank of Egypt Governor Hassan Abdalla said the move represents a cornerstone for broader African cooperation in the gold sector and reflects Egypt’s commitment to playing a leading role in promoting economic integration among African nations, while supporting the fair utilization of the continent’s natural resources.

Abdalla noted that choosing Egypt as the headquarters for the project underscores the confidence African institutions place in Egypt’s ability to host major continental initiatives, supported by its strategic geographic position linking Africa with the Middle East and Europe. This, he added, enhances Egypt’s prospects of becoming a regional hub for gold trading and related financial services.

Meanwhile, Afreximbank President George Elombi said that while the memorandum of understanding may appear simple in form, it carries substantial economic benefits for the African continent. He emphasized that the initiative sends a clear message that Africa’s gold should serve its people and support their economic development.