Egypt and Afreximbank Agree to Establish a Pan-African Gold Bank

The Central Bank of Egypt and the African Export-Import Bank (Afreximbank) have forged a memorandum of understanding that gives birth to the Pan-African Gold Bank. Through this move, the continent is planning to safeguard the gold value chains and trades within Africa, thus cutting down Africa’s reliance on foreign refining and trading hubs.

The deal was ratified by Egypt’s Central Bank Governor Hassan Abdalla and the President of Afreximbank Dr. George Elombi. A feasibility study is the first step, which will determine the technical, commercial, and regulatory requirements for the gold bank ecosystem in the free trade zone of Egypt with the involvement of African countries.

The features of the new Gold Bank would be a state-of-the-art refinery with international certification, modern vaults for gold storage, and a wide range of financial and trading services that will contribute to sustainable development. Gradually, it is expected to spread over the entire continent and engage governments, central banks, and mining industry players who will together set the best practices and thus make gold trading in Africa easier.

Egypt’s location, being at the crossroads of Africa, the Middle East, and Europe, has been one of the geographical advantages that made it a natural place for gold trade and financial innovations in the region. The partnership is a clear manifestation of the shared conviction regarding the role of economic integration and institutional collaboration among the economies of African countries.

Dr. Elombi stated that the pact is a testimony to the will to manage the gold resources of Africa in a manner that will mainly help the Africans through the tripling of the currency stability, the lowering of the external shocks exposure, and the creation of wealth in general.