Gold Rally Offers Lifeline for African Economies But Risks Persist

BREAKING NEWSMay 9, 2025 at 1:47 PM UTC

TLDR

Gold’s ongoing rally is proving to be a financial buffer for several African economies facing fiscal strain, as the metal’s safe-haven appeal strengthens amid global market volatility
Since the start of 2025, gold prices have climbed nearly 25%, offering export windfalls and currency support for resource-rich nations
Ghana, still managing the aftermath of a debt crisis, saw gold export earnings rise by 60% in the first two months of the year

Gold’s ongoing rally is proving to be a financial buffer for several African economies facing fiscal strain, as the metal’s safe-haven appeal strengthens amid global market volatility. Since the start of 2025, gold prices have climbed nearly 25%, offering export windfalls and currency support for resource-rich nations.

In Zimbabwe, small-scale miners drove a 61% year-on-year surge in gold output in April, with informal production more than doubling. The boom comes as the country battles chronic economic challenges. Zimbabwe has also restarted minting bullion coins to shore up its monetary system.

Also Read: Pulse54 Africa's Gold Hotspots

Ghana, still managing the aftermath of a debt crisis, saw gold export earnings rise by 60% in the first two months of the year. Its central bank has increased gold reserves, contributing to a stronger cedi—now the best-performing currency against the US dollar since April.

Namibia is also expanding its gold holdings. But while governments benefit, formal mining operations face setbacks. Mali’s biggest mine remains closed due to a tax dispute between the military-led government and Barrick. In Ghana, regulatory hurdles have stalled projects by AngloGold Ashanti and Gold Fields.

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Key Takeaways

Africa’s gold windfall has uneven impacts. Small-scale and informal miners are rapidly boosting production in places like Zimbabwe and Ghana, helping to plug revenue gaps and support foreign exchange needs. Governments are increasingly leveraging gold as a monetary asset, seen in central bank accumulation and coin minting. Yet risks abound. In the eastern Democratic Republic of Congo, gold’s rising value has fueled conflict as armed groups tighten control over mining zones. This has led to growing insecurity, with displaced farmers forced into hazardous mining work. Formal miners face their challenges, from tax disputes to permitting delays. These regulatory and governance issues undermine the potential for long-term sector stability and responsible investment. As African nations capitalize on high gold prices, the opportunity to formalize artisanal mining, strengthen institutional oversight, and promote secure and equitable gold trade is critical. Without these reforms, today’s gains may deepen tomorrow’s risks.

Commodities

Finance

Gold

Economy

Bullion

Gold Prices

Zaimbabwe

Ghana

Mali

Namibia