The Central Bank of Congo has signed a strategic partnership with DRC Gold Trading SA to purchase gold from artisanal miners for its monetary reserves, marking a first for the country, which currently holds no official gold stocks.
“Through this act, the central bank is strengthening the buildup of its monetary gold reserves,” the institution said, citing “greater financial sovereignty,” “a stronger Congolese franc” and “enhanced resilience to external shocks.”
The agreement was signed on Feb. 20 by Governor André Wameso in the presence of Portfolio Minister Julie Mbuyi Shiku, according to a statement posted by the bank on X.
According to Bloomberg, the central bank aims to become “the principal off-taker” of gold produced by artisanal diggers through DRC Gold Trading, a state-owned company launched three years ago under the name Primera to capture more revenue from the largely informal gold sector.
“The central bank is committing to position itself as the principal off-taker of gold produced by our artisanal diggers through DRC Gold Trading,” Mr. Wameso said in a video reviewed by M&B Magazine.
Billions of dollars’ worth of Congolese gold, much of it extracted in eastern provinces, are smuggled each year to neighbouring countries and on to Dubai, according to the government and United Nations experts cited by Bloomberg.
DRC Gold Trading is targeting output of up to 18 tons this year, worth nearly $3 billion at current prices, its managing director, Joseph Kazibaziba, told Bloomberg in January.
In remarks delivered in Lingala, Mr. Wameso said the central bank intends to buy the gold “not to sell it, but to store it as part of our international reserves”.
“The work of the Congolese people will strengthen currency stability and provide the country with reserves that can help in times of need or crisis,” he said, adding that the initiative “is not only a matter for the central bank, but for every Congolese citizen.”
Holding monetary gold will “secure reserves against inflation and geopolitical crises”, the bank said, offering “a safe-haven asset with no counterparty risk”, diversifying foreign exchange reserves and reinforcing confidence in the national currency.
In August, Mr. Wameso said he was in talks to build a domestic refinery to bolster reserves and support the franc. Neither the video nor the central bank’s statement disclosed the financial terms of the partnership. M&B Magazine