Stakeholders Push Gold Value Addition in African Finance
Stakeholders in African finance and extractive sectors have called for greater value addition and integration of gold into financial systems. This could enhance economic resilience and create wealth across the continent.
At the recent Gold Roadshow Africa, Mudassir Amray, Executive Director of Tropical General Investments Group, called gold “a metal of strategy” and “an inflation firewall.” He believes it can shield African economies from global financial shocks.
In his keynote address, ‘The Bridge Between Trust, Value, and Financial Sovereignty for Africa,’ Amray pointed out the recent rally in gold prices, which saw the metal cross the $4,300 mark for the first time. This, he said, signals a global shift in “trust, capital, and power.”
“For years, gold was seen as a metal of beauty,” he said. “Today, it stands as a model of strategy, politically neutral, instantly liquid, and a firewall against inflation and currency depreciation.”
The African Gold Challenge
Amray expressed concern that while Africa produces over 40% of the world’s gold, it captures less than 2% of its financial value. This is due to limited local processing capacity. “We export raw and import finished wealth,” Amray stated. He urged governments and investors to prioritize refining and market integration in Africa.
He also praised Kian Smith Gold Refinery for its efforts to boost local value capture and industrial growth. Such initiatives, he believes, are crucial for achieving financial sovereignty for Africa.
Strengthening Financial Ecosystems
Following his address, Amray joined a panel with Bolaji Balogun, CEO of Chapel Hill Denham, moderated by Bode Oyetunde, Senior Director of the African Development Bank. The panel discussed the necessary frameworks to integrate gold into Nigeria’s financial ecosystem.
They emphasized the need for coherent policies, supporting infrastructure, and more private sector participation. These efforts could allow Africa to benefit more equitably from its gold resources.
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A Path Forward for Africa’s Gold Sector
The Gold Roadshow Africa concluded with a commitment to align national policies, attract long-term investments, and promote local gold processing. These steps are vital for fostering inclusive and sustainable growth along Africa’s gold value chain.
