Egypt’s central bank, Afreximbank sign MoU to develop pan-African gold bank

Egypt’s central bank announced on Tuesday that it had signed a memorandum of understanding with the African Export–Import Bank (Afreximbank) signed to explore a pan-African gold bank, aiming to formalise gold value chains and bolster regional reserves.

Under the agreement, the Central Bank of Egypt (CBE) and Afreximbank will commission a feasibility study to examine the technical, regulatory, and commercial framework for establishing an integrated gold banking and refining hub in a designated free zone in Egypt. The initiative could include an internationally accredited refinery, secure vaulting facilities and associated financial and trading services designed to cut Africa’s reliance on overseas refining and trading centres.

The project dovetails with Egypt’s efforts to deepen economic ties across Africa and aligns with Afreximbank’s mandate to promote value addition and strategic mineral processing on the continent. It also comes as Egypt has been steadily building up its gold holdings as part of its foreign reserves — a trend mirrored globally as central banks seek to strengthen balance sheets amid market volatility.

“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.” the CBE said in a statement.

CBE Governor Hassan Abdalla and Afreximbank President and Chairman George Elombi signed the agreement at a ceremony at the central bank’s headquarters in Cairo.

CBE Governor Hassan Abdalla said the project could progressively evolve into a broader pan-African framework involving governments, central banks and market participants, underscoring Egypt’s commitment to deeper economic integration across Africa.

He added that Egypt’s potential role as a hub – subject to the outcome of the study and regulatory approvals – reflects confidence in its capacity to host large continental projects, citing the country’s strategic location linking Africa, the Middle East, and Europe.

Africa aims for resource sovereignty

Afreximbank President George Elombi described the MoU as a “bold declaration” that “Africa’s gold must serve African people,” with the proposed gold bank designed to reshape how the continent extracts, refines, manages and trades its gold resources.

“We make a bold declaration that Africa’s gold must serve African people” Afreximbank’s George Elombi

This MoU, … creates an African Gold Bank that will help us 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.” Elombi said.

“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’s gold reserves have been on an upward trajectory, contributing to rising foreign exchange holdings in recent months, as the central bank adjusts its reserve composition in response to global market dynamics.

The pact builds on strong ties between the CBE and Afreximbank — Egypt is the largest shareholder and host of the pan-African lender — and could position Cairo as a key node in a continent-wide effort to retain more value from natural resources and enhance financial integration.

Attribution: Amwal Al Ghad English