The African Export–Import Bank and the Central Bank of Egypt have signed a Memorandum of Understanding aimed at establishing the African Gold Bank in Egypt.

This was revealed in a statement on Tuesday, which highlighted that the MoU seeks to formalize gold value chains, enhance central bank reserves, and reduce Africa’s reliance on international refining and trading hubs.

Previously, it was reported that gold prices have hit successive all-time highs this year as investors increasingly sought safe havens in precious metals amid escalating global uncertainties.

According to the statement, the significant MoU was signed by Mr. Hassan Abdalla, Governor of the Central Bank of Egypt, and Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, during a ceremony at the Central Bank of Egypt.

In his remarks about the agreement, Abdalla stated that the initiative would lay the groundwork for a gradually evolving pan-African framework involving African governments, central banks, and market participants.

He reiterated Egypt's strong dedication to promoting initiatives that enhance economic integration throughout the continent and mentioned that Egypt's potential role as a hub—pending the findings of a study and necessary approvals—illustrates the confidence that African institutions have in its ability to support significant continental projects.

Due to its strategic location at the crossroads of Africa, the Middle East, and Europe, Egypt is ideally positioned to serve as a natural hub for regional gold commerce and financial innovation.

At the signing ceremony, Elombi emphasized the shared commitment of both organizations to collaborate closely, coordinate their efforts and resources, foster financial stability, and encourage sustainable economic growth across Africa.

Elombi remarked, “While today's ceremony may seem straightforward, it carries significant economic implications for our continent. We issue a bold announcement that Africa’s gold should benefit African people. This MoU, part of Afreximbank’s vision to ensure Africa’s resources benefit Africans, establishes an African Gold Bank that will fundamentally change the way we extract, refine, manage, value, store, and trade our gold resources, primarily aimed at retaining value on the continent.

“By effectively increasing the gold stock, similar to other major economies, we boost the continent’s resilience, lessen vulnerability to external shocks, improve currency stability and convertibility, and generate wealth within the continent.”

Egypt noted that the launch of the Gold Bank initiative is in line with its goal to widen strategic partnerships and enhance cooperation with African nations across various sectors, while also backing Afreximbank’s mission to foster value addition and strategic mineral processing.

The partnership also represents a mutual vision between the CBE and Afreximbank to support domestic manufacturing, encourage sustainable development, and strengthen regional financial and trade integration, which contributes to a robust and advanced African economic environment.

Under the MoU, both organizations will collaborate to conduct a feasibility study assessing the technical, commercial, and regulatory prerequisites for creating an integrated Gold Bank ecosystem in a designated free zone in Egypt, with input from African nations.

This initiative will encompass the establishment of an internationally accredited refinery, secure vaulting facilities, and other vital infrastructure.