As the world witnesses escalating geopolitical tensions, from Eastern Europe to the South China Sea, a familiar pattern re-emerges: a global rush towards gold.
This ancient metal, transcending millennia, is not merely a commodity but a profound psychological and financial sanctuary.
Its recent price surges are a direct barometer of global fear, a vote of no confidence in a fracturing international order.
While this crisis-driven demand underscores gold's timeless role, it presents a pivotal, yet largely missed, opportunity for Africa, the continent that holds its greatest abundance.
We must move beyond being the world’s quarry to becoming the architects of our own financial sovereignty, using this moment to catalyse structural transformation.
Ultimate store of value
People turn to gold in times of crisis for deeply rooted reasons. It is the ultimate asset of last resort, a tangible store of value that cannot be inflated into irrelevance by central bank policies or frozen by geopolitical adversaries.
When currencies wobble and alliances shift, gold stands apart, offering liquidity and universal acceptance.
Beyond pure economics, it carries a cultural weight, especially across African, Asian, and Middle Eastern societies, where it represents intergenerational security and social capital.
This crisis demand is not speculative frenzy; it is a strategic repositioning by both individuals and nations seeking stability in an unstable world.
Central banks, particularly in the Global South, are leading this charge, accumulating gold to diversify away from dollar-dominated reserves and bolster their monetary independence.
For Africa, this global pivot is a clarion call. The continent is home to over 40% of the world’s gold reserves yet remains perilously trapped at the raw material export stage of the value chain.
This crisis-driven appetite must be the catalyst for a fundamental shift. Our imperative is to capture this wealth domestically through aggressive beneficiation.
This means building and scaling local refineries, establishing sovereign mints to produce continent-branded bullion and coins, and fostering a vibrant, high-skill jewelry manufacturing industry.
Every gram of gold refined, designed, and sold on African soil creates jobs, retains value, and builds industrial capability. It transforms a primary commodity into a finished product bearing an African imprint.
Regional gold exchange
Furthermore, we must pioneer financial innovation anchored in our gold wealth. Imagine a pan-African gold-backed financial instrument, a collective initiative that could underpin infrastructure projects or stabilise currencies.
By creating a regional gold exchange, we could facilitate trade in gold contracts priced in local currencies, reducing dollar dependency and building a more resilient monetary ecosystem.
This is not a retreat from global finance but an intelligent engagement with it on terms that enhance our sovereignty.
Concurrently, we must formalise and empower the artisanal mining sector, which contributes significantly to our production.
Providing miners with access to fair markets, better technology, and safer working conditions integrates them into the formal economy, boosts national revenue, and ensures the ethical provenance of our gold, a premium the world increasingly demands.
The world’s flight to gold in times of fear is a historical constant. Africa’s response, however, need not be passive.
We have the resource; what we now require is the decisive vision and collective political will to restructure the entire value chain.
By doing so, we can convert this moment of global uncertainty into a foundation for lasting African prosperity, stability, and financial self-determination. Let the world seek shelter in gold; let Africa build its future upon it.
The author, Kennedy Chileshe, is the Executive Director of the Jubilee Leaders Network in Zambia, focusing on Leadership and Governance.
Disclaimer: The views expressed by the author do not necessarily reflect the opinions, viewpoints and editorial policies of TRT Afrika.
