North Africa dominates, as Africa’s gold reserves hit $91.7 billion
The cumulative gold reserves held by African central banks have surged to $91.7 billion, driven by the sharp rally in global gold prices. The price of gold climbed to $3,985 per ounce as of October 10.
The rise in valuations has boosted the value of existing reserves across the continent. Global central banks are also increasing their exposure to the precious metal amid heightened geopolitical and economic uncertainty.
North Africa dominates the continent’s gold holdings
North African countries remain the clear leaders in Africa’s gold reserve rankings, with Algeria topping the list. According to new data from the World Gold Council (WGC), Algeria’s central bank holds 173.56 tonnes of gold, equivalent to $22.2 billion at current market prices.
Libya follows with 146.65 tonnes, reflecting the country’s long-standing strategy of maintaining substantial bullion reserves as a safeguard against economic instability. Egypt, South Africa, and the West African Economic and Monetary Union (WAEMU) complete the top five, holding 128.59 tonnes, 125.47 tonnes, and 36.52 tonnes, respectively.
The WAEMU manages monetary policy for eight Francophone West African nations. These include Benin, Togo, Côte d’Ivoire, Burkina Faso, Niger, Guinea-Bissau, Mali, and Senegal. The union plays a key role in stabilizing the region’s shared currency, the CFA franc, through reserve diversification that includes gold.
Beyond North Africa, Ghana ranks sixth with 36 tonnes, underscoring its growing role as both a gold producer and reserve holder. Morocco follows with 22.11 tonnes, while Nigeria, Tunisia, and Guinea round out the top ten with 21.46 tonnes, 6.84 tonnes, and 6.29 tonnes, respectively.
In total, the World Gold Council identified 13 African central banks holding a combined 715.68 tonnes of gold. Despite this growth, Africa’s share remains modest, representing just 2 percent of global central bank gold holdings.
Global Context: U.S and Europe still dominate
Globally, gold reserves are heavily concentrated among advanced economies. The United States Federal Reserve holds 8,133 tonnes, accounting for 22.4 percent of total global central bank reserves. Germany follows with 3,350 tonnes, while the International Monetary Fund (IMF) controls 2,814 tonnes.
Other major holders include Italy with 2,451 tonnes, France with 2,437 tonnes, Russia with 2,326 tonnes, and China with 2,302 tonnes. This concentration underscores the strategic importance of gold in global monetary systems, even in an era dominated by fiat currencies and digital finance.
Why gold is back in focus
Gold prices have surged by more than 52 percent in 2025, briefly surpassing the $4,000 per ounce mark on October 8. Analysts attribute this rise to a mix of geopolitical shocks, persistent inflation fears, and skepticism over the stability of major economies.
Volatile bond markets and slowing global growth have further encouraged investors and central banks to seek safety in gold. Many developing economies are also diversifying away from the U.S. dollar and other reserve currencies, using gold as protection from external shocks and currency depreciation.
Shift in global demand patterns
The World Gold Council notes a significant change in global gold demand over the past four years. In the first quarter of 2021, jewelry fabrication accounted for 59 percent of total global demand.
As of Q1 2025, that share had dropped to 32.6 percent, while investment demand, including exchange-traded funds and bullion purchases, has risen to 42 percent.
This shift shows how gold’s role has evolved from a luxury commodity to a preferred hedge against macroeconomic risks. For many African economies grappling with currency depreciation, inflationary pressures, and external debt challenges, holding gold is becoming an increasingly strategic choice.
With global uncertainty showing no signs of easing, analysts expect African central banks to continue accumulating gold.
