Gold reserves have long been a cornerstone of central bank financial strategies worldwide, and African nations are no exception. Amid ongoing global economic uncertainty, evolving monetary policies, and the need for more diversified reserve assets, many African central banks have been steadily increasing their gold reserves.
These gold reserves act as a safeguard against currency volatility and help build investor confidence, a factor crucial in regions often exposed to external financial shocks.
According to the World Gold Council (WGC), gold’s unique combination of safety, liquidity, and steady returns, the three key investment objectives for central banks, makes it a vital component of national reserves.
Today, central banks collectively hold about one-fifth of all the gold ever mined, underscoring gold’s enduring value as both a strategic asset and a symbol of monetary stability.
For Africa’s leading reserve holders, gold continues to play a pivotal role in enhancing economic resilience and reinforcing financial credibility on the global stage.
Gold hits historic highs
Gold has reached several record highs this year, surpassing $3,500 per ounce in April as investors flocked to safe-haven assets following President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell.
According to a report by the European Central Bank, globally, central banks purchased over 1,000 tonnes of gold last year-twice the average of the previous decade.
Global gold reserves held by central banks rose to 36,000 metric tons in 2024, nearing the all-time high of 38,000 tons recorded 60 years ago.
A survey conducted by the WGC found that two-thirds of central banks bought gold to diversify portfolios, while around 20% cited protection from geopolitical and economic risks, including Russia’s invasion of Ukraine.
Africa accelerates gold drive
For many African economies, gold reserves are a way to strengthen monetary sovereignty and reduce reliance on foreign currencies. Countries like South Sudan, Zimbabwe, and Nigeria are expanding their reserves, aligning with global trends seen in China and India.
The WGC survey further disclosed that around 20 central banks plan to increase gold holdings this year. In Africa, top reserve holders are often resource-rich or gold-producing nations.
Gold not only serves as a store of value but also provides central banks with greater flexibility during economic shocks, making it a key asset for financial stability.
According to the latest WGC report, the table below shows the African countries with the largest gold reserves as of Q1 2025.
| Rank | Country | Gold Reserves Tonnes |
| 1 | Algeria | 173.56 |
| 2 | Libya | 146.65 |
| 3 | Egypt | 128.00 |
| 4 | Ghana | 31.01 |
| 5 | Mauritius | 12.42 |
| 6 | Tunisia | 6.84 |
| 7 | Kenya | 0.02 |
As of Q1 2025, Algeria’s central bank holds the largest gold reserves in Africa, with 173.56 tonnes, followed by Libya and Egypt with 146.65 and 128 tonnes respectively.
These North African nations have historically maintained strong gold positions as part of their monetary strategy. Ghana, the highest-ranking sub-Saharan country, holds 31.01 tonnes, reflecting its role as one of Africa’s top gold producers.
Smaller economies like Mauritius, Tunisia, and Kenya hold more modest reserves, often for diversification and financial security rather than strategic stockpiling.
