The Bank of Mozambique plans to buy gold produced locally as part of efforts to diversify its international reserves, as the country forecasts a 44 percent recovery in gold production in 2027 following mining disruptions that have weighed on output.
Felisberto Navalha, governor of the central bank, announced the plan in Tete during the opening session of the bank’s 51st Advisory Council meeting. He said the bank was working with the Ministry of Mineral Resources and Energy to establish a framework for purchasing domestically mined gold.
‘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.
The proposed purchases reflect a broader shift among central banks, including those in Africa, towards diversifying reserves through gold acquisitions. Buying from domestic producers could also provide Mozambique with another channel for building its holdings, although the scale of purchases and their contribution to reserves will depend on the final operating framework.
The bank’s gold reserves increased in value by 65 percent in 2025 to 35.03 billion meticais (pound 467 million), up from 21.21 billion meticais (pound 283 million) in 2024, according to financial statements previously compiled by Lusa. The increase was largely driven by higher international gold prices, while the physical quantity held by the bank remained relatively stable.
The plan also comes as Mozambique considers expanding its 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.
Production recovery expected in 2027
Mozambique expects gold production to rise to 1,809.2 kilograms in 2027 from an 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 percent,’ the document states.
If achieved, the forecast would exceed the previous annual production peak of 1,666.4 kilograms recorded in 2023. Gold output rose from 764.4 kilograms in 2021 to 1,263.8 kilograms in 2022 and 1,666.4 kilograms in 2023, before falling to 1,625.8 kilograms in 2024 and 1,349.3 kilograms in 2025.
At current international prices, the projected 2027 output could have a gross value exceeding $230 million. Actual earnings would depend on gold prices, the quality of the output and marketing conditions.
The recovery forecast follows a period of disruption in the mining sector. Gold production fell 17 percent in 2025 to 1,349.3 kilograms, reaching about 82 percent of the annual target. Authorities attributed the decline mainly to the suspension of mining activities in Manica, one of the country’s principal gold-producing regions.
The government has also stepped up oversight of mining operations. According to the 2025 budget execution report, a multisectoral commission was established to tackle illegal mining, monitor degraded mining areas and promote local gold refining before exports.
Output remained under pressure in the first half of 2026, declining 12 percent to 713.33 kilograms, equivalent to 36 percent of the full-year target of 1,723.24 kilograms.
The Ministry of Mineral Resources and Energy attributed the fall to the suspension of mining companies in Niassa as they regularised their licences, alongside continued interruptions to mining activity in Manica.
Purchasing gold locally could give the central bank a more direct way to convert domestic mineral production into reserve assets. However, the strategy’s effectiveness will depend on whether output recovers, how much gold the bank can buy and the terms on which it purchases the metal.