Africa is the third largest gold producer in the world with mining operations in at least 21 countries. The mining sector is one of the major sources of employment in many African nations.
Out of these 21 countries, 10 have the largest gold reserves, according to data firm Statista.
Algeria is the first African country with the largest holding with 174 metric tonnes. South Africa follows closely with 125 metric tonnes. Libya has 117 metric tonnes, Egypt has 80.73 metric tonnes, Morocco has 22.12 metric tonnes, Nigeria has 21.37, Mauritius has 12.44 metric tonnes, Ghana has 8.74 metric tonnes, and Tunisia has 6.84 metric tonnes with Mozambique placing 10th with 3.94 metric tonnes.
Gold has become one of the assets investors are falling on to collateralize their investment as geopolitical tension in Ukraine and Russia is shrinking major economies.
The price of gold hit $2,069.25 an ounce in March this year, the highest record figure this year compared to the gold price in August last year.
Gold has also become a safety net for global economies in the wake of rising inflation.
Two hundred and seventy-two point nine metric tonnes of gold, according to the World Gold Council, were bought by central banks worldwide in 2020.
Financial experts and investors consider gold protection for their wealth because it’s not affected by the shocks in the financial system. This is because gold reduces losses that accompany other investments when there is a shakeup in the financial system, according to Trustable Gold.
One characteristic of gold is that, while other currencies depreciate at some point in time, gold maintains a stable purchasing power.