Johannesburg, South Africa – Mansa Musa, the 14th-century emperor of the Malian Empire, often comes to mind whenever African gold enters the conversation. Renowned for his immense wealth, he is often described as the richest man in history, largely due to the vast gold resources of his empire.

Yet centuries after Mansa Musa’s reign, Africa’s relationship with gold remains paradoxical. The continent possesses some of the world’s richest gold deposits, but much of the wealth generated by the industry continues to be captured elsewhere. According to the United Nations Environment Programme (UNEP), Africa holds about 40 percent of the world’s gold reserves.

Although Africa remains one of the world’s most gold-rich regions, it continues to occupy the lower end of the global value chain. Gold extracted across the continent is largely exported, mainly to the United Kingdom, where it is refined, traded and priced. As a result, the most profitable stages of the industry remain concentrated elsewhere, creating a persistent gap between extraction and value capture.

“Africa’s position reflects structural constraints, including limited refining capacity, capital bottlenecks and historical trade patterns that favour exporting unrefined gold, allowing offshore markets to capture the highest-value margins in refining and trading,” Kate Collett, insights analyst at Africa Practice, told Al Jazeera.

Increasingly, African governments are not only seeking to extract more gold but also to retain greater control over it. That ambition extends beyond mining policy. Across the continent, policymakers are increasingly viewing gold as a strategic financial asset that can strengthen reserves, reduce external vulnerabilities and support greater economic sovereignty.

A shift in global reserves

Gold has re-emerged as a strategic reserve asset in an increasingly fragmented global economy. Unlike fiat currencies, it is widely seen as retaining value during periods of inflation, geopolitical tension and financial uncertainty.

Across the Global South, central banks have increased gold accumulation in recent years as part of efforts to diversify reserves and reduce exposure to external financial systems. This trend is visible in major emerging-market economies, including China, Russia, India and Turkiye, according to data from the World Gold Council.

By accumulating gold, central banks reduce reliance on foreign currencies and hold reserves outside the direct control of any single financial system.

African countries have joined this shift in an effort to strengthen economic stability, build reserve buffers and increase financial sovereignty.

Within Africa, 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, according to Bank of Ghana reporting and policy communications.

Nigeria has pursued broader reserve diversification strategies, including increased interest in gold as part of efforts to strengthen the composition of its external reserves, according to central bank statements and analysis by international financial institutions, including the International Monetary Fund (IMF) and the World Gold Council.

Tanzania requires approximately 20 percent of gold output from mining companies and traders to be allocated for sale to the central bank under its reserve-building framework, according to Bank of Tanzania regulations. Guinea has tightened licensing and export controls in its mining sector, part of wider efforts to increase state oversight and capture more domestic value.

According to analyst Thea Fourie, head of regional analysis for the Middle East and Africa at S&P Global Market Intelligence, rising gold prices have reinforced these shifts. “This trend aligns with a broader geopolitical shift towards de-dollarisation … including the development of alternative payment systems and increased use of local currencies in trade,” she told Al Jazeera.

For African producers, this changing global financial environment has accelerated the use of gold as a tool of economic sovereignty, analysts say.

Capturing more of the value chain

Across the continent, governments are also trying to retain more value from domestic production by tightening oversight of mining and reshaping how gold moves from extraction to export.

Ghana has expanded its central bank gold purchasing programme. Tanzania has strengthened regulatory control linked to domestic sales and reserve-building requirements, while Guinea has tightened licensing enforcement and export rules aimed at improving domestic processing and value retention.

In Guinea, authorities have also cancelled mining licences deemed unproductive and restricted exports of unprocessed gold in an effort to encourage local refining. Namibia continues to restrict the export of unprocessed minerals, reinforcing efforts to increase domestic value capture.

Artisanal mining, often operating outside formal systems, is increasingly being treated as part of the formal gold economy rather than a parallel informal sector. Governments are seeking to formalise production, reduce smuggling and increase tax and export revenues.

“These programmes can help countries retain more value from their mineral resources by reducing smuggling, formalising artisanal mining and creating incentives for local refining and downstream industries,” Collett said.

But integration remains uneven. Many small-scale miners still operate outside formal channels due to limited access to finance, markets and technical support.

“As commodity prices rise, this gap between legal status and how the sector operates on the ground is widening, with value still flowing outside formal systems,” she added.

Resource nationalism in the Sahel

In the Sahel, military-led governments in Mali and Burkina Faso have pushed further towards state control of mining assets, framing reforms as part of a broader effort to reduce economic dependence on former colonial partners.

Mali’s President Assimi Goita has overseen a restructuring of the mining sector, expanding state involvement and promoting domestic processing capacity. With Russia emerging as a key partner after a break with France, the government is also developing a state-controlled gold refinery in Bamako.

Burkina Faso has increased state participation in mining and sought to expand national gold reserves. Alongside Mali and Niger under the Alliance of Sahel States, it has pursued deeper economic coordination. Plans for closer monetary cooperation have been discussed, though they remain in development.

However, most large-scale mines in the region remain operated by foreign companies due to limited domestic technical capacity.

According to Fourie, of S&P Global Market Intelligence, this shift reflects a broader wave of resource nationalism driven by fiscal pressures and security challenges.

“These governments have also deepened ties with non-Western partners, reshaping longstanding trade and diplomatic relationships,” she said.

But analysts caution that tighter state control can deter investment if regulatory frameworks are unclear or not consistently applied.

“The quest for African resource sovereignty should not be reduced to the Sahel juntas’ spectacular enforcement, with executives locked up in jail, and inflammatory narratives,” Collett said.

A long road to control

Despite growing policy momentum, full control over the gold value chain remains distant. Moving from extraction to refining and pricing within African economies requires sustained investment in infrastructure, skills and industrial capacity.

Building internationally certified refineries and attracting long-term capital will take time, even as governments push for greater oversight.

“When the measures are introduced in an opaque manner, when there is no stakeholder engagement, is when investor confidence starts to slip,” said Beverly Ochieng, senior analyst at Control Risks.

Some governments have managed to balance tighter control with investor confidence by maintaining clearer regulatory engagement and consultation with industry stakeholders.

For now, much of the value generated by African gold continues to flow abroad.

“The experiment with the state mining operators will be one to watch … whether they are able to meet international standards, sell the gold and set prices,” Ochieng said. “And ultimately, at the back of it is whether this government will be stable enough to see through this process.”

Still, many analysts believe the direction of travel is set.

“I think in the long run, we are seeing more African governments taking steps to ensure the entire value chain remains in-country … Maybe in a couple of decades, we might see a sort of gold OPEC emerging from African countries,” she said.