Communication - Presse

Bank of Mozambique Plans to Buy Domestic Gold to Diversify Reserves

The central bank announced on Wednesday, 28 May, that it intends to begin purchasing gold produced within Mozambique, following a growing trend among African central banks to increase gold’s share of reserve assets.

The announcement was made by the bank’s governor, Felisberto Navalha, during the opening of the 51st meeting of the Bank of Mozambique’s Consultative Council, held in Tete province, where he outlined several priorities for the management of the country’s external reserves.

According to Navalha, the central bank is working in coordination with the Ministry of Mineral Resources and Energy to draw up a working plan that will operationalise the acquisition of domestically produced gold. “In the area of international reserves management and in coordination with the Ministry of Mineral Resources and Energy, we are developing a working plan aimed at operationalising the acquisition of domestically produced gold,” Navalha said.

The governor explained that the initiative follows the approach adopted by several central banks, including African institutions, which have sought to increase gold’s weight in their reserve composition. The measure is “in line with the trend among central banks” to strengthen and diversify reserve assets through the acquisition of gold produced in their respective countries, he added.

Although the Bank of Mozambique has not yet disclosed the amount earmarked for the operation, the quantities it intends to acquire, or the implementation timeline, the initiative could represent a new opportunity to add value to national gold production. The announcement comes after the bank’s gold reserves recorded a sharp appreciation in 2025, driven primarily by rising international prices for the precious metal.

According to the institution’s financial statements, the value of its gold reserves rose 65%, from 21.2 billion meticais in 2024 to approximately 35 billion meticais in 2025 — an increase of roughly 13.8 billion meticais in a single year — even as the physical volume of gold held by the central bank remained relatively stable.

That performance reflects primarily the appreciation of gold on international markets rather than any significant increase in physical holdings. The potential acquisition of domestically produced gold could therefore allow the central bank to expand its physical stock and broaden the composition of its international reserves.

Mozambique Gold Output Forecast to Hit Record in 2027

The intention to purchase domestic gold comes at a time when the Mozambican government is projecting a significant recovery in gold production, following two years marked by operational difficulties and the suspension of mining activities in several regions.

According to the draft Economic and Social Plan and State Budget (PESOE) for 2027, the country could produce 1,809.2 kilograms of gold next year, up from the 1,255.4 kilograms projected for 2026, representing growth of approximately 44%. “In the metallic minerals segment, gold stands out, with production potentially increasing by around 44%,” the government document states.

Should the forecast materialise, Mozambique could achieve its highest-ever gold output, surpassing the previous record of 1,666.4 kilograms set in 2023. At the international prices used in the published estimate, projected 2027 production represents a gross value of more than US$230 million, though the actual amount will depend on commercialisation conditions and the evolution of international prices.

The expected performance stands in contrast to results recorded over the past two years. In 2025, national gold production fell 17% to 1,349.3 kilograms, equivalent to only 82% of the annual target, owing primarily to the halt in extraction activities in Manica province.

Source: Bank of Mozambique Plans to Buy Domestic Gold to Diversify Reserves • 360 Mozambique