What happened The Bank of Mozambique is working in coordination with the Ministry of Mineral Resources and Energy to establish an operational framework to purchase domestically extracted gold, as reported by Club of Mozambique. The central bank's governor announced the initiative at the opening session of the institution's 51st Advisory Council meeting, noting that the strategy aligns with regional and global central bank practices aimed at diversifying and strengthening international reserves through local gold acquisition. Club of Mozambique noted that the valuation of gold reserves held by the central bank rose by 65% in 2025 to 35,034.9 million meticais (€467 million), up from 21,210.8 million meticais (€283 million) in 2024, according to financial statements compiled by Lusa. This rise was predominantly driven by higher international bullion prices, while physical reserve holdings remained stable. In parallel, the government revealed in March that United Arab Emirates investors showed interest in building Mozambique's first domestic gold refinery with modern certification standards. The policy move coincides with government projections outlined in the proposed Economic and Social Plan and State Budget (PESOE) for 2027, which forecasts gold extraction to reach 1,809.2 kilograms. This represents a 44% surge from the 1,255.4 kilograms projected for 2026 and would mark a record high, surpassing the previous peak of 1,666.4 kilograms achieved in 2023. At current price levels, the projected 2027 volume carries an estimated gross value exceeding US$230 million (€200 million). These projections follow sustained operational disruptions across Mozambique's mining regions. Official records show production rose from 764.4 kilograms in 2021 to 1,263.8 kilograms in 2022 and 1,666.4 kilograms in 2023, before falling to 1,625.8 kilograms in 2024 and 1,349.3 kilograms in 2025. Club of Mozambique reported that the 2025 drop of 17% resulted from mining suspensions in Manica and intensified inspections by a multisectoral commission addressing illegal mining and environmental damage. During the first half of 2026, output dropped 12% year-on-year to 713.33 kilograms—covering only 36% of the 1,723.24-kilogram annual target—due to operational halts in Manica and licensing regularisation halts in Niassa. Why it matters Nexus analysis indicates that incorporating domestic gold into central bank reserves could offer Mozambique a mechanism to capture additional value from its mineral wealth while moderating foreign exchange volatility. The proposed purchasing program also interfaces with official efforts to develop downstream processing capacity, notably the proposed refinery backed by UAE investors. If domestic refining materialises, it could facilitate transparent supply chains and support state formalisation drives aimed at reducing illicit mineral outflows. What to watch Nexus analysis highlights the operationalisation terms between the central bank and the Ministry of Mineral Resources and Energy as a key monitorable. Observers will also track whether mining operations in Manica and Niassa can overcome regulatory and licensing interruptions to meet the 1,255.4-kilogram forecast for 2026 and achieve the record target set for 2027. Sources Club of Mozambique, Further Africa
- Further Africa · Club of Mozambique
Further Africa · Club of Mozambique
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