The Bank of Mozambique is exploring the purchase of domestically mined gold to strengthen its international reserves. Governor Felisberto Navalha announced this initiative on 28 October 2026, at the bank's 51st Advisory Council meeting in Tete. This move aims to diversify the bank's reserves and aligns with a broader trend among African central banks to reduce dependence on foreign-currency assets by investing in locally mined gold.
The central bank plans to collaborate with the Ministry of Mineral Resources and Energy to develop a purchasing framework for domestic gold. This will be followed by the establishment of operational rules and a formal work plan. By creating a new institutional buyer for Mozambican producers, the bank's initiative is expected to support the local gold industry. Mozambique's gold production fell by 17% in 2025 to approximately 1,349.3 kilograms, but it is projected to recover.
According to the proposed 2027 Economic and Social Plan and State Budget, Mozambique's gold production is expected to reach 1,809.2 kilograms in 2027. This represents a 44.1% increase from the 1,255.4 kilograms projected for 2026 and surpasses the previous production peak of 1,666.4 kilograms recorded in 2023. The projected increase in production provides a credible supply base for the central bank's gold purchase plans.
The value of Mozambique's monetary gold reserves increased by approximately 65% in 2025. The reserves rose from 21,210.8 million meticais in 2024 to 35,034.9 million meticais in 2025, equivalent to roughly €283 million and €467 million, respectively. This increase was primarily due to higher international gold prices rather than new physical acquisitions. The proposed purchases would mark a distinct policy shift, adding gold through domestic output rather than relying solely on price appreciation.
Mozambique is also seeking to expand its refining capacity, with UAE investors expressing interest in establishing the country's first gold refinery. The development of local refining capabilities would improve traceability and support the formal marketing of production. This move is expected to enhance the country's gold industry and provide additional benefits for the central bank's gold purchase initiative.
The policy's eventual scale will depend on several factors, including the final purchase rules, available mine output, and prevailing international gold prices. The central bank's operational framework, specifically purchase volumes, producer eligibility criteria, and the pace of mining recovery through 2027, will be crucial in determining the success of this initiative.
The Bank of Mozambique's decision to purchase domestic gold reflects a broader trend among African central banks to invest in locally mined gold. By diversifying its international reserves, the bank aims to reduce its dependence on foreign-currency assets and support the local gold industry. The initiative is expected to have a positive impact on Mozambique's economy, provided that operational rules are put in place before output peaks.
Key points
- The Bank of Mozambique plans to purchase domestic gold to diversify its international reserves.
- Mozambique's gold production is projected to reach 1,809.2 kilograms in 2027.
- The central bank's initiative aligns with a broader trend among African central banks to invest in locally mined gold.
