The African Export–Import Bank and the Central Bank of Egypt have signed a Memorandum of Understanding for the African Gold Bank in Egypt.
This was disclosed in a statement on Tuesday, indicating that the MoU would formalise gold value chains, strengthen central bank reserves and reduce Africa’s reliance on foreign refining and trading hubs.
The PUNCH reports that gold prices hit a series of record highs this year as investors turned to precious metals as stores of value amid uncertainties caused by economic and geopolitical tensions.
The statement revealed that the landmark MoU was signed by the Governor of the Central Bank of Egypt, Mr Hassan Abdalla, and the President and Chairman of the Board of Directors of Afreximbank, Dr George Elombi, during a ceremony held at the Central Bank of Egypt.
Commenting on the agreement, Abdalla emphasised that the initiative serves as a foundation that could progressively expand into a pan-African framework that would engage African governments, central banks, and market participants.
He underscored Egypt’s steadfast commitment to driving initiatives that promote economic integration across Africa, noting that the selection of Egypt as a potential hub, subject to the outcome of the study and subsequent approvals, reflects the African institutions’ confidence in its readiness to foster continental mega projects.
With its strategic geographic location at the crossroads of Africa, the Middle East, and Europe, Egypt is well-positioned to serve as a natural hub for regional gold trade and financial innovation.
Speaking at the signing ceremony, Elombi affirmed the joint commitment of both institutions to collaborating closely, aligning efforts and resources to promote financial stability, and contributing to sustainable economic prosperity across Africa.
Elombi said, “Today’s 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. This MoU, which is part of Afreximbank’s vision to make Africa’s resources benefit Africans, creates an African Gold Bank that will help us to begin to 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.
“By effectively building up the gold stock, as other major economies have done, we enhance the continent’s resilience, minimise vulnerability to external shocks, improve currency stability and convertibility, and create wealth within the continent.”
Egypt added that the establishment of the Gold Bank programme is in line with its vision to expand strategic partnerships and strengthen mutual collaboration with African states across diverse fields, as well as Afreximbank’s focus on promoting and accelerating value addition and strategic mineral processing.
The partnership also builds on a shared vision between the CBE and Afreximbank to support domestic manufacturing, enhance sustainable development, and deepen regional financial and trade integration, fostering a robust and advanced African economic ecosystem.
Under the MoU, the two institutions will collaborate on commissioning a feasibility study to assess the technical, commercial, and regulatory requirements for developing an integrated Gold Bank ecosystem in a designated free zone in Egypt, with the participation of African countries. This includes the establishment of an internationally accredited refinery, secure vaulting facilities, and associated financial and trading services.
The initiative also targets the expansion of its scope across the continent and the engagement of governments, central banks, mining companies, and industry stakeholders to strengthen institutional collaboration, harmonise best practices, and facilitate the sustainable trade of gold and related services across Africa.
The PUNCH reports that Afreximbank and the Central Bank of Egypt have had a long, cordial relationship, with Egypt being the bank’s largest shareholder and its host.
