Gold to the Rescue: How African Nations Are Banking on Bullion
Gold to the Rescue: How African Nations Are Banking on Bullion
As global financial uncertainty persists, several African countries have been turning to gold as a strategic tool—to stabilize currencies, build reserves, and shield their economies from volatility. With prices now surpassing $3,400 per troy ounce, their gold-focused policies are gaining even more relevance:
🟡Zimbabwe launched a gold-backed currency (ZiG) in April 2024 to fight hyperinflation and bring financial stability;
🟡Uganda plans to buy domestic gold from artisanal miners to boost its foreign exchange reserves and reduce reliance on volatile global markets;
🟡South Sudan aims to diversify reserves by adding gold, according to Central Bank Governor James Alic Garang;
🟡Madagascar’s central bank is investing in gold to offset falling vanilla exports and support the national currency;
🟡Tanzania began requiring miners and traders to sell 20% of their gold to the central bank, strengthening reserves;
🟡Nigeria is considering legislation to have 30% of reserves in gold, with the Central Bank becoming the main buyer.
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