This strategic initiative aims to strengthen central bank reserves, reduce reliance on international refining and trading hubs outside of Africa, and formalize the continent's gold ecosystem.
The MoU was signed at the CBE headquarters by Hassan Abdalla,
Governor of the Central Bank of Egypt, and Dr. George Elombi, Executive Vice
President of Afreximbank.
The project aligns with Egypt's vision to expand strategic
partnerships and bolster cooperation across Africa. For Afreximbank, the
initiative represents a critical step in accelerating value addition and the
strategic processing of African minerals. Key objectives of the partnership
include promoting local industrialization and sustainable development, enhancing
financial and trade integration across the continent, and building a resilient
economic system capable of withstanding global market shifts.
Under the agreement, both parties will conduct a
comprehensive feasibility study to evaluate the technical, commercial, and
regulatory requirements for an integrated gold banking system. The proposed
framework includes an internationally accredited gold refinery situated within
a dedicated free zone in Egypt, secure storage facilities through state-of-the-art
vaults for physical gold, and specialized financial services through advanced
trading platforms and gold-linked financial instruments.
While headquartered in Egypt, the initiative is designed to
scale across the continent, involving governments, mining companies, and
financial institutions to standardize practices and facilitate sustainable
trade.
Hassan Abdalla, Governor of the CBE, emphasized that this
initiative serves as a catalyst for broader continental integration:
"Egypt’s selection as the host for this project, pending
final studies, reflects the confidence African institutions have in our
capacity to manage major continental projects. Our unique geographic position
linking Africa, the Middle East, and Europe positions Egypt to become a premier
regional hub for gold trading and financial services."
Dr. George Elombi of Afreximbank highlighted the
transformative nature of the deal: "This MoU ensures that Africa’s gold
serves its own people. By building gold stocks—as other major economies have
done—we enhance the continent’s resilience, reduce vulnerability to external
shocks, and strengthen the stability and convertibility of African currencies.
We are fundamentally changing how our gold is extracted, refined, and
valued."
The collaboration builds on a long-standing relationship between the two institutions. Egypt is currently the largest shareholder in Afreximbank, and Cairo serves as the bank's headquarters.