Africa’s central bank reserves climbed to $530 billion in 2025, largely supported by higher gold prices and increased accumulation of the precious metal.

This was revealed in the Africa Finance Corporation’s latest “State of Africa’s Infrastructure Report,” which notes a broader shift in reserve management across the continent amid ongoing global economic uncertainty.

According to the report, rising commodity prices and policy adjustments are reshaping Africa’s external asset position, while improved valuations and higher physical gold holdings significantly strengthened the continent’s reserve base over the past year.

Total central bank reserves across Africa increased to $530 billion in 2025, up from $480 billion in 2024, marking a $50 billion rise.

“Central bank reserves have strengthened, supported by commodity dynamics and a historic rally in gold prices.

“Gold now represents approximately 17 per cent of total reserves, up from less than 10 per cent in 2022-2023, with physical holdings rising from 663 tonnes in 2022 to an estimated 738 tonnes in 2025,” the report stated.

The growth was supported by stronger gold accumulation efforts, with countries such as Egypt, Ghana, Tanzania, and Zimbabwe leading active programmes to build up their gold reserves.

The report noted that both higher gold prices and deliberate diversification strategies contributed to the increase in reserves.

The Africa Finance Corporation added that the growing preference for gold reflects a broader shift in how African central banks are managing external assets, especially in response to persistent global financial uncertainty.

Central banks are increasingly turning to gold as a hedge against currency volatility and inflationary pressures.

The trend points to a gradual reduction in reliance on traditional reserve currencies, as global economic shocks prompt a rethink of reserve management strategies.

The report comes as African economies continue to reassess external financing and reserve adequacy, with both opportunities and pressures influencing country-level outcomes.

Nigeria’s reserve position reflects this mixed outlook.
Nigeria’s external reserves closed 2025 at about $45.5 billion, up from $40.8 billion at the beginning of the year, according to Central Bank of Nigeria data.

Looking ahead, the Central Bank of Nigeria has projected that reserves could rise to $51.04 billion in 2026, supported by oil earnings, bond issuances, and diaspora remittance inflows.