Gold and silver prices have been on a steady upward trend in recent months. In early June 2025, gold prices surged past $2,400 per ounce while silver climbed above $31 per ounce, marking one of the strongest rallies in recent years.
This upward momentum is driven by several global factors, including ongoing geopolitical tensions, economic uncertainty, shifting investor sentiment, and continued central bank buying of precious metals.
For Africa, a continent rich in mineral resources, especially gold and silver, these price changes are more than just market movements.
They represent a significant shift with potential consequences for trade, public revenues, employment, and local economies.
As global markets continue to exhibit volatility, Africa’s mining sector and its broader economy stand at a pivotal turning point.
Africa’s place in the global gold and silver market
Africa is one of the world’s top producers of both gold and silver. Countries such as South Africa, Ghana, Sudan, Mali, Burkina Faso, and Tanzania are well-known for their gold mining operations.
Silver, although produced in smaller quantities, is mined in Morocco, South Africa, and a few other countries, often as a byproduct of other minerals.
According to the World Gold Council, Africa contributes over 20 percent of global gold production. The sector supports millions of jobs both directly and indirectly, from industrial operations to Artisanal and Small-scale Mining (ASM).
With gold and silver prices rising, these countries now have a chance to generate more export earnings, increase government revenues through royalties and taxes, and attract more foreign investment into the sector.
Export earnings and foreign exchange gains
Rising prices of gold and silver are likely to boost export earnings for mineral-rich African countries. As the value per ounce increases, countries can earn more from the same volume of exports.
This is especially important at a time when many African economies are struggling with debt burdens, currency depreciation, and reduced aid flows.
For example, Ghana, which is Africa’s top gold producer, earned over $6.6 billion from gold exports in 2023.
With current price increases, the country could potentially surpass that figure in 2025 even if production remains flat.
This could help strengthen the Ghanaian cedi and improve the country’s balance of payments, easing pressure on foreign reserves.
Similarly, Sudan and Mali, both dependent on gold exports, are likely to see improvements in foreign exchange inflows.
This may support basic imports such as fuel, food, and medicine, especially as global commodity prices continue to rise due to inflation and supply chain disruptions.
A win for governments and national budgets
Many African governments rely on mineral royalties, license fees, and corporate taxes from mining companies to fund national budgets.
With gold and silver prices rising, tax revenues are expected to grow if production levels remain stable or increase.
This comes at a crucial time for countries such as Zimbabwe and the Democratic Republic of Congo, which are battling inflation, political uncertainty, and budget deficits.
Improved mineral revenues could help governments invest in public services like healthcare, education, and infrastructure, as well as repay debts and reduce reliance on foreign aid.
However, experts warn that for these benefits to be felt, governments must ensure that mining companies are properly taxed and that artisanal miners are brought into formal systems.
Transparent licensing, regular audits, and digital tracking of mineral flows can help ensure that governments receive their fair share from the mineral boom.
Attracting investment into Africa’s mining sector
The rise in precious metal prices is likely to increase investor interest in Africa’s mining industry. Higher prices make mining more profitable, which may encourage both local and international investors to explore new mining projects or expand existing ones.
Countries like Nigeria, which are working to diversify away from oil dependency, may see this as a chance to develop their underexplored gold deposits.
Juniors and mid-tier mining companies may also become more active, particularly in countries with favourable mining laws and political stability.
Exploration activity is expected to rise in West Africa, especially in the Sahel region, where new gold discoveries have been reported in recent years.
But to attract sustainable investment, governments must offer predictable regulatory frameworks, respect for investor rights, and strong environmental and social safeguards.
Mining remains a high-risk industry, and investors will only move in if they believe their capital is safe.
Risks of increased illegal mining and smuggling
While higher prices bring economic benefits, they also increase the risk of illegal mining and cross-border smuggling. In many parts of Africa, artisanal mining is poorly regulated and completely informal.
Rising gold prices often lead to a rush into mining areas, causing conflicts, environmental damage, and loss of government revenue.
Countries like Burkina Faso and the Central African Republic have seen armed groups move into gold-rich areas, using profits to fund violence.
Similarly, informal miners operating without licenses often sell gold outside official channels, depriving governments of much-needed taxes.
To manage this, experts call for better regulation and support for artisanal miners. Formalizing their operations through cooperatives, providing technical support, and enforcing environmental rules could turn informal mining into a legal and productive part of the economy.
Impacts on jobs and communities
Millions of Africans rely on the mining sector for jobs and income. The rise in precious metal prices could improve livelihoods, especially in rural areas where mining is often the only source of employment.
Artisanal miners may earn more for their gold, while companies may hire more workers as operations expand.
In mining towns, more income usually leads to increased demand for goods and services, supporting local traders, transporters, and businesses.
For communities that have suffered from low mineral prices and job cuts in the past, this new cycle offers hope for economic recovery.
However, there is a need to protect workers’ rights and ensure that women and youth benefit equally.
Mining has often excluded women or exposed them to dangerous working conditions. Policymakers must create laws that ensure equity and safety for all.
Silver’s growing importance in Africa’s green future
While gold usually gets more attention, silver is also becoming increasingly valuable, especially in the transition to green energy.
Silver is used in solar panels, batteries, and electric vehicles. As the world shifts toward renewable energy, demand for silver is expected to grow sharply.
Africa has a chance to tap into this trend. Countries like Morocco, which already produce silver, could benefit from higher demand. New silver exploration projects may also emerge in countries with underexplored deposits.
By linking mineral development to green industries, Africa can take part in the global shift toward sustainability.
However, this will require investments in research, industrial policy, and local value addition to ensure minerals are not just exported in raw form.
Environmental and social responsibility in mining
As gold and silver prices rise, mining activity is expected to increase. This brings concerns about the environmental and social impact of mining on land, water, forests, and communities.
Illegal mining often leads to deforestation, river pollution, and land degradation. Even legal mines can have negative effects if not properly managed. Communities living near mining areas sometimes face displacement, water shortages, or health problems.
Africa must learn from past mistakes. Strong environmental laws, better community consultations, and fair compensation can help reduce conflicts. Mining companies must also adopt responsible practices and follow global standards for social and environmental performance.
Technology and innovation to support responsible mining
New technologies offer ways to make mining more efficient, transparent, and sustainable. Mobile apps, satellite tracking, and blockchain can help governments monitor production, reduce smuggling, and increase transparency in supply chains.
Digital payments can also help miners receive fair prices and avoid exploitation by middlemen. Innovations in processing can reduce the use of harmful chemicals like mercury and cyanide in gold extraction.
African countries should invest in such technologies, working with universities, tech startups, and development partners to build skills and local solutions. Responsible mining not only protects the environment but also increases investor confidence.
Building resilience through value addition
To fully benefit from the rise in gold and silver prices, African countries must go beyond exporting raw minerals. Value addition, such as refining, jewelry making, and manufacturing, can create jobs and increase earnings.
Uganda, for example, has built gold refineries to process both local and regional gold. South Africa has a long history of gold refining and jewelry production. Countries with silver resources can also explore manufacturing solar components or electronics.
Governments should support value addition through tax incentives, training, and investment in industrial zones. Building regional markets and improving infrastructure will also help industries grow beyond national borders.
A new era for African mining
The rise in global gold and silver prices marks an important moment for Africa. It brings the promise of higher earnings, more jobs, and stronger economies. But it also brings risks, from illegal mining and smuggling to environmental harm and inequality.
To turn this price boom into long-term progress, African countries must act wisely. Good governance, investment in communities, modern technology, and sustainable practices are key to making mining a force for development.
As the world watches the precious metals market, Africa must position itself not just as a source of raw materials but as a leader in responsible, inclusive, and value-driven mining. The opportunity is golden, and the time to act is now.
