In 2023, global gold investment trends show that production reached over 3,000 tonnes, with Africa contributing 370 tonnes, or 11.67%. Despite holding around 40% of the world's gold reserves, Africa's output, led by South Africa, Ghana, and Mali, suggests potential for growth. Smuggling issues, particularly in the DRC, impact accurate accounting, with an estimated $3 billion in gold annually misattributed due to illegal trade. China topped the 2023 production charts, accounting for 12% of global output, and led as the largest buyer with its central bank purchasing 225 tonnes.
Gold Reserves and Production in Africa
In 2023, according to data from the U.S. Geological Survey, the world produced over 3,000 tonnes of gold. The top five producers in Africa, ranked by production, were South Africa (100 tonnes), Ghana (90 tonnes), Burkina Faso (60 tonnes), Mali (60 tonnes), and Tanzania (60 tonnes).
Africa's top 5 gold producers produced 370 tonnes of gold in 2023, or 11.67% of total gold production for the year. Not a paltry number, but given that Africa contains around 40% of the world's known gold reserves production could be much higher. Estimates are that 50% or the world's gold mined has come from South Africa, primarily from the Witwatersrand Basin which has the largest gold deposit in the world.
The Democratic Republic of the Congo (DRC) is notably absent from the list, potentially due to the high incidence of gold smuggling. Gold is particularly vulnerable to such activities because it can be easily melted down, which obscures its origin. This makes it a common tool for money laundering by various criminal networks and according to Megha Swamy, Deputy Director of Elicit Finance Policy at The Sentry,
"Almost all of the high-risk gold mined in East and Central Africa makes its way to Dubai, where policy and regulatory loopholes allow for this trade to flourish."
If the smuggling estimates from The Sentry are correct, around $3 billion worth of African gold annually is misattributed to other countries. The influence of gold smuggling on African GDP and gold production calculations could be significant.
Uses of Mined Gold
The gold produced was used for a variety of purposes including jewelry (46%), storage by central banks (23%), creation of physical bars (16%), creation of coins (9%), electronics (5%), and other uses (1%).
Demand for gold in the jewelry sector has remained consistent over the previous five decades. Central bank purchases are increasing, as are its use as an investment vehicle, which makes sense given that we are in a period of economic uncertainty.
China Gold Production and Purchases
China produced the most Gold in 2023 accounting for around 12% of global production, followed by Australia and Russia. China's aggressive approach to bolstering its gold reserves is part of a broader strategic priority of diversifying away from the U.S. dollar and to gain more leverage in the international finance system.
China's gold mines are located mainly in its eastern provinces such as Shandong, Henan, Fujian, and Liaoning. It's not clear how accurate China's gold production figures are. The smuggling of gold in and out of China has been a significant issue, affecting the accuracy of gold production and trade figures. In Hong Kong in 2024, authorities made their largest-ever gold smuggling bust, seizing 146 kilograms of gold disguised as machine parts, with an estimated market value of more than $10 million.
China was the largest buyer of gold in 2023 with the central bank alone buying 225 tonnes.
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