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By Ayo Kehinde
African central bank reserves rose 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 increase highlights a significant shift in reserve management strategies across the continent.
According to the Africa Finance Corporation’s latest “State of Africa’s Infrastructure Report,” the improvement reflects both valuation gains and deliberate policy adjustments by central banks in response to global economic uncertainty.
Gold has emerged as the central pillar of this strategy. The report finds that gold now represents about 17% of total reserves, compared to less than 10% between 2022 and 2023.
Physical inventories also increased from 663 tonnes in 2022 to around 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 shift away from heavy reliance on traditional reserve currencies.
The AFC points out that central banks are increasingly turning to gold as a hedge against currency volatility and inflation, while at the same time strengthening reserves against external shocks.
The trend reflects a recalibration of reserve management as policymakers grapple with persistent global financial instability.
Overall, Africa’s rising gold position illustrates a strategic effort to safeguard economic resilience while adapting to a rapidly evolving international financial landscape.
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