The Wealth Divide: Africa’s Gold and Global Value Chains Johannesburg, South Africa – Africa, a continent rich in gold reserves, stands at the crossroads of a paradoxical economic landscape. Home to approximately 40 percent of the world’s gold reserves, Africa’s relationship with the precious metal is complex.
The wealth generated by the industry often bypasses the continent, with the lion’s share of profits captured elsewhere.
The United Nations Environment Programme (UNEP) has underscored this discrepancy, revealing that Africa’s position at the lower end of the global gold value chain is indicative of deeper structural issues. These include limited refining capacity and historical trade patterns that favor the export of unrefined gold.
The recent postponement of Zijin Mining’s acquisition of Allied Gold, valued at C$5. 5 billion ($4 billion), serves as a case in point.
The deal, initially scheduled for late April, was delayed due to concerns raised by Chinese regulators regarding the acquisition price and exposure to Mali. This acquisition would have added significant African assets to Zijin’s portfolio, highlighting the global interest in Africa’s mining sector and the strategic importance of African gold to international mining companies. South Africa’s mining stocks have reached record valuations in 2026, driven by rising gold, copper, and platinum prices.
However, this surge in value does not necessarily translate into greater wealth for African nations. Kate Collett, insights analyst at Africa Practice, notes that Africa’s position in the global gold value chain reflects structural constraints such as limited refining capacity and historical trade patterns favoring the export of unrefined gold.
The UNEP’s findings suggest a growing awareness among African policymakers of the strategic importance of gold and the desire to retain greater control over its extraction and value chain. This shift is evident in the efforts of African countries to strengthen their economic stability, build reserve buffers, and increase financial sovereignty. Ghana, one of Africa’s leading gold producers, has increased the proportion of locally produced gold purchased by the central bank under its domestic gold accumulation programme.
Nigeria and Tanzania have also pursued broader reserve diversification strategies, including increased interest in gold as part of efforts to strengthen the composition of their external reserves. These moves align with a broader geopolitical shift towards de-dollarisation, including the development of alternative payment systems and increased use of local currencies in trade. Analysts say this changing global financial environment has accelerated the use of gold as a tool of economic sovereignty for African producers.
Governments across the continent are also working to retain more value from domestic production by tightening oversight of mining and reshaping how gold moves from extraction to export. This includes expanding central bank gold purchasing programmes, strengthening regulatory control, and tightening licensing and export controls.
The future of Africa’s gold industry hinges on the ability of African nations to overcome structural constraints and implement effective policies that can ensure a fairer distribution of the wealth generated by the industry.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: aljazeera
Source: Pelumi Salako
