Egypt, represented by the country's central bank and Cairo-based African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MOU) for the establishment of a pan African gold bank in the Arab country.

This strategic initiative aims to formalise gold value chains, strengthen reserves of Central Bank of Egypt (CBE), reduce Africa’s reliance on foreign refining and trading hubs and suport Afreximbank’s focus on promoting and accelerating value addition, and strategic mineral processing, the multilateral financial institution said in a press statement.

Under the MoU, the two institutions will collaborate on commissioning a feasibility study to assess the technical, commercial, and regulatory requirements for developing an integrated Gold Bank ecosystem in a designated free zone in Egypt, with the participation of African countries. This includes the establishment of an internationally accredited refinery, secure vaulting facilities, and associated financial and trading services, according to the statement.

Afreximbank President and Chairman George Elombi said the initiative could “fundamentally alter the way Africa extracts, refines, manages, values, stores and trades its gold resources,” with the goal of retaining more value on the continent.

CBE Governor Hassan Abdalla said the selection of Egypt as a potential hub - subject to the outcome of the feasibility study and regulatory approvals - reflects confidence in the country’s readiness to host large-scale continental projects.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.