The Gold Rush in Africa

The gold rush in Africa is ongoing.


Since 1886, when prospectors discovered a number of gold-bearing reefs near the present-day South African city of Johannesburg, the African continent has become renowned for its gold production. The region led to a boom in output, and for more than a century, South Africa maintained its dominance in the global gold market by producing 30% of the world's gold. A Canadian junior gold exploration company called Gold range Resources has joined the scramble to buy gold discoveries on the African continent.

South Africa is no longer a big producer, but it still has a lot of undeveloped gold ounces. The gold mining sector in West Africa, which is dominated by Ghana, Mali, and Burkina Faso, currently generates almost twice as much gold as South Africa. The deeper sulphide ore is still underground, while the majority of the 30 West African mines that have been constructed in the last 20 years have focused on shallow, easily mineable oxide material.

Ghana is currently the sixth-largest producer of gold in the world after alone mining an amazing 130 metric tons of gold in 2021. Large-scale mining, though, is taking place across the whole continent, not only in Ghana. The Democratic Republic of the Congo, Tanzania, and three of the continent's top five gold mines are all located in West Africa. On the African continent, gold mining is well-established, yet there are still significant untapped deposits. NESW Global and other small exploration and resource firms are utilizing this and investigating these possibilities.

Investors are finding Africa to be a desirable area to penetrate. Africa is becoming into a manufacturing hotspot thanks to a young, expanding population. Africa's population, which makes up 16.72 percent of the global population as of June 2022, is over 1.40 billion people, with a median age of 19.7. In addition to being the second-biggest continent in the world by population, Africa is home to six of the world's top economies, according to the World Economic Forum.

African Economic Analysis

The predicted GDP of 54 African economies in 2021 was $2.7 trillion, an increase of $296 billion from the GDP in 2020. Africa accounts for 4.97 percent of global wealth and 2.84 percent of the world's GDP. The World Bank's most recent biannual analysis, Africa's Pulse, predicts that Sub-Saharan African economies will grow by 3.6 percent in 2022, down from 4 percent in 2021, as a result of the emergence of new COVID-19 variants, inflation, supply shocks on a global scale, and issues related to climate change. However, the outlook is positive for Africa's mining sector, the second-largest in the world, as commodity prices soar as a result of Russia's invasion of Ukraine.

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