THE price of gold has smashed through the $3,000 per ounce barrier for the first time, offering a potential windfall for Africa’s gold-producing nations. As demand for the precious metal surges, major economies across the continent stand to benefit from increased exports and foreign exchange earnings.
According to a report by the BBC, gold reached a record $3,004.86 per ounce on Friday. The sharp rise—14 percent since the start of 2025—is largely driven by global economic uncertainty, sparked by the intensifying trade war between the United States and its key partners.
A golden opportunity for Africa
For countries like South Africa, Ghana, Mali, and Sudan—among the continent’s largest gold producers—the historic price surge is a significant economic opportunity. Higher prices are expected to bolster export revenues, improve fiscal balances, and attract further investment into the mining sector.
‘African gold producers are poised to benefit immensely from these record prices,’ said Victoria Hasler, head of fund research at London-based Hargreaves Lansdown, in comments reported by the BBC. ‘This is a rare moment where geopolitical tensions elsewhere create opportunities for resource-rich nations in Africa.’
Trade war sparks safe-haven demand
Investors worldwide are flocking to gold as a safe-haven asset amid fears of a global economic slowdown. The United States, under President Donald Trump, has escalated trade hostilities by threatening a 200 percent tariff on alcohol imports from the European Union. This follows the EU’s proposal for a 50 percent tariff on US whiskey, itself a response to Trump’s sweeping tariffs on steel and aluminium.
Trump has also raised tariffs on Chinese imports to at least 20 percent, fuelling concerns about rising prices for consumers. These protectionist policies are heightening fears of inflation, pushing investors to seek refuge in gold.
Suki Cooper, a precious metals analyst at Standard Chartered, told the BBC: ‘In a backdrop of geopolitical uncertainty and ongoing tariff changes, appetite for gold remains strong.’
What it means for African economies
For Africa’s resource-driven economies, the rally in gold prices comes at a crucial time. Nations like Ghana—the continent’s top gold producer—could see a sharp rise in export earnings. The additional revenue could help strengthen national currencies, reduce budget deficits, and support public spending.
South Africa, historically one of the world’s largest gold producers, stands to gain as well, although its mining sector faces operational challenges. Meanwhile, Mali and Sudan—both reliant on gold exports—may also experience a much-needed boost to their economies, which have been strained by political instability and conflict.
‘This surge in gold prices can provide temporary relief for some economies dealing with fiscal pressures,’ said Russ Mould, investment director at UK-based AJ Bell. ‘However, governments must manage these windfalls wisely to ensure long-term benefits.’
Central banks and diversification away from the dollar
Another factor driving gold’s rise is the increase in purchases by central banks, many of them in emerging markets. According to World Gold Council data, central banks added 1,045 tonnes of gold to their reserves last year—the third consecutive year where purchases topped 1,000 tonnes.
Victoria Hasler noted: ‘Part of this buying spree reflects a desire to diversify reserves away from US dollars, particularly amid concerns about the US economy and currency stability.’ This trend could inspire more African central banks to consider similar strategies as they seek to safeguard national wealth.
A look back—and ahead
Gold’s current bull run mirrors its performance during previous periods of global crisis. In 2007, during the global financial meltdown, investors flocked to gold, driving prices higher. Since dipping below $1,200 an ounce in late 2018, gold has ‘marched inexorably higher,’ according to Mould, fuelled by the Covid pandemic, widening government deficits, and now, an unpredictable trade war.
For Africa’s gold producers, the future looks bright—provided they can leverage this opportunity to stimulate broader economic growth. But as history shows, reliance on commodity booms comes with risks.
‘There’s no guarantee these prices will last,’ warned Mould. ‘It’s vital for African nations to use this momentum to diversify their economies and reduce over-reliance on mineral wealth.’ (Africabriefing)
