Africa’s central bank reserves rose to $530 billion in 2025, driven largely by higher gold prices and increased accumulation of the precious metal.
This was disclosed in the Africa Finance Corporation’s (AFC) latest “State of Africa’s Infrastructure Report”.
The development reflects a broader shift in reserve management strategies across the continent amid global economic uncertainty.
The report highlights how rising commodity prices and policy adjustments are reshaping Africa’s external asset position.
What the report is saying
The AFC noted that Africa’s reserve position improved significantly over the past year, supported by both valuation gains and increased physical gold holdings.
- Total central bank reserves across Africa rose to $530 billion in 2025, up from $480 billion in 2024, representing a $50 billion increase.
- “Central bank reserves have strengthened, supported by commodity dynamics and a historic rally in gold prices.”
- “Gold now represents approximately 17% of total reserves, up from less than 10% in 2022-2023, with physical holdings rising from 663 tonnes in 2022 to an estimated 738 tonnes in 2025,” the report stated.
- Countries such as Egypt, Ghana, Tanzania and Zimbabwe have led active gold accumulation programmes.
The report noted that both higher gold prices and deliberate diversification strategies contributed to the rise in reserves.
More Insights
The AFC said the growing preference for gold reflects a broader shift in how African central banks are managing external assets, particularly in response to global financial uncertainty.
- Central banks are increasingly using gold as a hedge against currency volatility and inflationary pressures.
- The trend signals reduced reliance on traditional reserve currencies amid global economic shocks.
- Rising gold holdings also reflect a strategic effort to strengthen external buffers against market instability.
The AFC described the development as part of a wider recalibration of reserve management across the continent.
What you should know
The report comes as African economies continue to reassess external financing and reserve adequacy, with both opportunities and pressures shaping country-level outcomes. Nigeria’s reserve position illustrates this mixed picture.
- Nigeria’s external reserves closed 2025 at about $45.5 billion, up from $40.8 billion at the start of the year, according to central bank data.
- The Central Bank of Nigeria has projected reserves could rise to $51.04 billion in 2026, supported by oil revenues, bond issuances and diaspora remittances.
- However, reserves fell to $48.6 billion as of April 16, 2026, reflecting a cumulative decline of about $1.38 billion over five weeks.
- Despite short-term pressures, Nigeria’s net foreign exchange reserves rose to $34.80 billion at the end of 2025, indicating improved underlying external liquidity.
Across Africa, the AFC report suggests a clear structural shift, with gold emerging as a key pillar of reserve diversification strategies amid ongoing global uncertainty.
