“Strategic Diversification”: African Central Banks Join Global $2 Billion Gold Buying Wave in 2026

Adham mohamed18 hours ago

Central banks across Africa are increasingly aligning with a global transition toward gold-backed reserves, contributing to a significant rebound in bullion demand. Recent data for February 2026 indicates that global central bank purchases reached 27 tonnes, a volume valued at approximately $2 billion based on current market prices.

This uptick, reported by analysts including the World Gold Council, marks a decisive recovery from the January slowdown and underscores a sustained international push toward reserve diversification amidst ongoing financial uncertainty.
While global gold demand remains concentrated among a small group of aggressive accumulators, the strategic participation of African nations marks a pivotal shift in the continent’s fiscal policy. Globally, the People’s Bank of China remains the most consistent buyer, extending a purchasing streak that has lasted over 16 months and pushed its reserves beyond 2,300 tonnes.

Similarly, the National Bank of Poland and the central banks of Kazakhstan, Turkey, and India continue to dominate net demand, collectively keeping global gold accumulation well above historical averages.
Within the African context, the Bank of Uganda is emerging as a leader in strategic entry into gold accumulation.

The bank has launched a domestic purchasing program aimed at sourcing at least 0.1 tonnes of gold locally over a four-month period. This initiative reflects a broader regional trend where central banks are moving toward locally sourced reserves to mitigate currency volatility and strengthen balance sheet stability.

This cautious but structured approach is also mirrored in the Democratic Republic of the Congo, which is targeting the formalization of 15 tonnes of artisanal gold production in 2026 to enhance state control over bullion flows.
Kenya is also signaling a shift in its reserve management reforms. Although current holdings are minimal at 0.02 tonnes, Kenyan policymakers have indicated plans for a gradual accumulation of gold to diversify foreign reserves currently estimated between $12 billion and $13 billion.

This follows the performances of Ghana and Egypt in the previous year, where gold was utilized aggressively to support national currencies and maintain economic stability during periods of heightened market pressure.
The broader trajectory for 2026 suggests that while Africa currently holds a modest share of global gold reserves, the continent is adopting a policy-driven approach to increase its holdings. As global trade fractures and traditional currency hedges face increased scrutiny, African central banks are increasingly viewing gold as a critical asset for long-term economic resilience.

This movement aligns with the wider global trend where bullion is regaining its stature as the ultimate hedge in an increasingly fragmented global financial system.