The African Export–Import Bank and the Central Bank of Egypt have entered into a Memorandum of Understanding to establish the African Gold Bank in Egypt.
This was disclosed made in a statement on Tuesday, noting that the MoU aims to formalise gold value chains, boost central bank reserves, and lessen Africa’s dependence on foreign refining and trading centres.
It was earlier reported that gold prices have reached successive record highs this year as investors increasingly turned to precious metals as safe stores of value amid growing global uncertainties.
The statement said 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, at a ceremony held at the Central Bank of Egypt.
Commenting on the agreement, Abdalla said the initiative would serve as a foundation that could gradually evolve into a pan-African framework involving African governments, central banks, and market participants.
He reaffirmed Egypt’s strong commitment to advancing initiatives that drive economic integration across the continent, adding that Egypt’s consideration as a potential hub—subject to the study’s outcome and required approvals—demonstrates the confidence African institutions have in its capacity to support major continental projects.
Given its strategic position at the intersection of Africa, the Middle East, and Europe, Egypt, he noted, is well placed to function as a natural hub for regional gold trade and financial innovation.
Speaking at the signing ceremony, Elombi reaffirmed the shared commitment of both institutions to work closely together, align their efforts and resources, promote financial stability, and support 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 noted that the establishment of the Gold Bank programme aligns with its vision to expand strategic partnerships and deepen collaboration with African states across various sectors, while also supporting Afreximbank’s mission to promote value addition and strategic mineral processing.
The partnership further reflects a shared vision between the CBE and Afreximbank to support domestic manufacturing, promote sustainable development, and strengthen regional financial and trade integration, contributing to a resilient and advanced African economic ecosystem.
Under the MoU, both institutions will work together to commission a feasibility study to evaluate the technical, commercial, and regulatory requirements for developing an integrated Gold Bank ecosystem in a designated free zone in Egypt, with participation from African countries.
This initiative will include the creation of an internationally accredited refinery, secure vaulting facilities, and other essential infrastructure.
