MAPUTO, Oct 28 – The Bank of Mozambique plans to begin purchasing domestically produced gold as part of efforts to diversify its international reserves, Governor Felisberto Navalha said in Tete, as the country anticipates a recovery in gold production next year.
“In the area of international reserve management, and in coordination with the Ministry of Mineral Resources and Energy, we are drawing up a work plan aimed at operationalising the acquisition of domestically produced gold,” Navalha said at the opening session of the central bank’s 51st Advisory Council meeting.
The proposed purchases align with a broader trend among central banks, including those in Africa, to strengthen and diversify international reserves through the acquisition of locally mined gold, he said.
The Bank of Mozambique’s gold reserves increased in value by 65% in 2025 to 35,034.9 million meticais (€467 million), compared with 21,210.8 million meticais (€283 million) in 2024, according to the central bank’s financial statements previously compiled by Lusa.
The increase largely reflected higher international gold prices, while the physical quantity of gold held by the central bank remained relatively stable.
The reserve strategy coincides with plans to expand Mozambique’s domestic gold-processing capacity. In March, the government said investors from the United Arab Emirates had expressed interest in establishing the country’s first gold refinery, using modern technology and international certification standards.
Gold Production Forecast to Rise 44% in 2027
Mozambique expects gold production to reach 1,809.2 kilograms in 2027, up 44% from the estimated 1,255.4 kilograms in 2026, according to the proposed Economic and Social Plan and State Budget for 2027.
“In the metallic minerals sector, gold stands out, with production potentially increasing by around 44%,” the document states.
If achieved, the forecast would represent the country’s highest recorded annual gold production, surpassing the previous peak of 1,666.4 kilograms in 2023.
Official figures show that production rose from 764.4 kilograms in 2021 to 1,263.8 kilograms in 2022 and 1,666.4 kilograms in 2023. Output subsequently declined to 1,625.8 kilograms in 2024 and 1,349.3 kilograms in 2025.
At current international prices, the projected 2027 output would have a gross value exceeding US$230 million (€200 million). The final value will depend on global gold prices and marketing conditions.
Mining Disruptions Weigh on Output
The production recovery forecast follows two years of operational challenges in the sector.
In 2025, gold output fell by 17% to 1,349.3 kilograms, equivalent to 82% of the annual target. The decline was attributed mainly to the suspension of mining activities in Manica, one of Mozambique’s principal gold-producing regions.
According to the 2025 budget execution report, the downturn occurred amid tighter oversight of mining operations. Authorities had established a multisectoral commission to combat illegal mining, monitor degraded mining areas and promote local gold refining before exports.
Production remained under pressure in the first half of 2026, falling by 12% to 713.33 kilograms. That represented 36% of the annual target of 1,723.24 kilograms.
The Ministry of Mineral Resources and Energy attributed the decline to the suspension of mining companies’ operations in Niassa as they regularised their licences, as well as the suspension of mining activity in Manica.
The planned acquisition of domestically produced gold would create a potential additional channel for the central bank to build its reserves, while linking reserve management more closely to the country’s mineral production. Its eventual impact will depend on the operational framework, the volume of gold purchased and the recovery of domestic mining output.
