By Ayo Kehinde
Africa’s central bank reserves climbed to $530 billion in 2025, up from $480 billion in 2024, driven largely by surging gold prices and increased accumulation of the precious metal.
The $50 billion rise underscores a significant shift in reserve management strategies across the continent.
According to the latest “State of Africa’s Infrastructure Report” by the Africa Finance Corporation, the improvement reflects both valuation gains and deliberate policy adjustments by central banks responding to global economic uncertainty.
Gold has emerged as a central pillar of this strategy. The report notes that gold now accounts for about 17% of total reserves, up from less than 10% between 2022 and 2023.
Physical holdings also rose from 663 tonnes in 2022 to an estimated 738 tonnes in 2025.
Countries including Egypt, Ghana, Tanzania, and Zimbabwe have led efforts to expand gold reserves, combining higher global prices with targeted diversification policies.
This shift signals a broader move away from heavy reliance on traditional reserve currencies.
The AFC highlights that central banks are increasingly turning to gold as a hedge against currency volatility and inflation, while also strengthening buffers against external shocks.
The trend reflects a recalibration of reserve management as policymakers navigate persistent global financial instability.
Overall, Africa’s growing gold position illustrates a strategic effort to safeguard economic resilience while adapting to a rapidly changing international financial landscape.
