Striking Gold: Africa’s Opportunity in the New Gold Rush

Ouagadougou: Soaring gold prices have sent African nations that produce the precious metal scrambling to capitalize on the surge. But can they adjust quickly enough? The value of gold grew by 65% in 2025 and breached $5,580 (£4,705) per ounce (roughly 31 grams) last week before declining. According to Deutsche Welle, Africa's main gold producers are seeking to profit from the rise in gold prices. Burkina Faso, for example, reported a record 94-tonnes gold output in 2025, an increase of over 30 tonnes compared to 2024 figures. Marvellous Ngundu, a researcher at the South Africa-based Institute of Security Studies (ISS), noted that Africa stands to benefit from "export earnings, fiscal revenues and also an increase in the foreign currency inflows." This is significant as Africa produces over a quarter of the global gold output, more than any other continent. However, Ngundu highlighted a caveat: "If, and only if, the leakages or the illicit financial flows associated with gold are controlled." Ghana, Africa's top gold producer, is changing its mining laws to capture a bigger share of gold revenues. Officials there say favorable tax and royalty terms leave the state with a limited stake. Foreign mining companies operating in Ghana, including Newmont, AngloGold Ashanti, and Gold Fields, are concerned about the proposed overhaul. Ghana's terms for foreign mining companies are known as stability agreements, determining royalty rates for five to 15 years in exchange for investments of about $300 million to $500 million in mine constructions and expansions. Elsewhere, Mali, the Democratic Republic of Congo, and Tanzania have also tightened mining laws to increase state control over critical minerals, including cobalt and coltan. Aside from Western backers, China and Russia have invested in gold mining, including in the Sahel countries. Last year, Burkina Faso granted Russian mining giant Norgold a lease to develop the Bissa-Bouly mine, about 85 kilometers (53 miles) north of the capital, Ouagadougou. Ngundu warns that the surge in gold price, while welcome for Africa's miners, presents a double-edged sword for governments. "This gold windfall can fuel currency on overvaluation and crowd out other exports unless managed. You'll see that at the end of this quarter, Africa's exports will be high, especially for those who export gold," he told DW. Even though Africa produces more gold than any other continent, it holds just 2% of gold reserves. "Gold is a currency on its own. It determines the monetary autonomy of the country. Gold is being sold by these [producing] countries, but the problem is that it's being sold to other countries in raw form," Ngundu explained. For comparison, the United States has 8,133 tonnes in gold reserves, followed by Germany, Italy, and France. The highest-ranked African nation is Algeria, with 174 tonnes. South Africa, which has over a century of gold mining history, has just 125 tonnes. Ngundu suggested building gold-refining plants on the continent and controlling "illicit leakages" would sign ificantly help African governments benefit from their gold wealth. Ghana, like other African nations, has hemorrhaged mining profits due to illegal or unregulated mining. The skyrocketing gold price has also turbocharged demand in illicit mining, which, in turn, fuels instability in local communities, such as in the Sahel. While the civil war has brought Sudan's economy to its knees, the SMRC announced a "five-year high" in production of 70 tonnes of gold in 2025. However, analysts and officials say most of the gold is smuggled out of Sudan before reaching the United Arab Emirates, the world's second-largest gold exporter.