Global Gold Surge Shapes West African Investment
In the first quarter of 2026, worldwide demand for gold reached 1,231 tonnes, translating to a market value of about $193 billion – a 74 % increase compared with the same period in 2025, according to the World Gold Council’s quarterly report. This rapid expansion is prompting mining firms across West Africa to look beyond ore grade when evaluating new projects.
Analysts note that regulatory stability, taxation regimes, and the quality of transport and power infrastructure have become decisive factors for investors seeking long‑term returns. Countries that can offer predictable policies and reliable logistics are better positioned to capture a larger share of the growing gold wealth.
Côte d’Ivoire Leverages the Mining Boom
Côte d’Ivoire is emerging as a beneficiary of this shift. The Koné gold project, currently under development in the northern region, is slated to deliver more than 300,000 ounces of gold per year and generate roughly 3,000 direct jobs during its operational phase. Government officials highlight the project’s potential to stimulate local suppliers and spur ancillary services such as equipment maintenance and catering.
Neighbouring Mauritania and Guinea are also intensifying outreach to foreign mining companies, offering tax incentives and streamlined permitting processes to attract fresh capital.
Mali, Burkina Faso and Ghana Tighten State Control
Conversely, Mali, Burkina Faso and Ghana have moved to increase state involvement in their gold sectors. Recent legislative amendments grant governments a larger share of mining royalties and introduce stricter oversight of export licences. Authorities argue that the measures are necessary to ensure that a greater proportion of gold revenues funds national development priorities, including health, education and infrastructure.
Industry observers caution that while the intent is to boost sovereign wealth, overly restrictive policies could deter investment if they create uncertainty around profit repatriation or operational flexibility.
Fuel Price Hike Strains Households and Businesses in Côte d’Ivoire
Effective 1 August 2026, the Ivorian government adjusted pump prices: petrol rose from 875 to 905 CFA francs per litre, while diesel increased from 700 to 725 CFA francs per litre. The adjustment reflects the removal of a temporary subsidy that had previously insulated consumers from volatile international oil markets.
In Abidjan, transport‑dependent enterprises are feeling the pinch. Ride‑hailing drivers report higher fuel expenditures that are difficult to pass on to passengers without losing competitiveness. Delivery workers and restaurant owners say the added cost of moving goods is already translating into fewer orders, as some customers opt for cheaper alternatives or reduce frequency of purchases.
Impact on Transport‑Dependent Sectors
Beyond personal mobility, the price increase threatens to ripple through sectors that rely heavily on logistics:
- Logistics and freight: higher diesel rates raise the cost of moving goods across the country, potentially inflating prices for imported and locally produced items.
- Agro‑industry: farmers and processors face elevated expenses for transporting harvests to market and for operating machinery.
- Energy generation: diesel‑powered backup generators, common in areas with intermittent grid supply, now incur higher operating costs.
Economist Désiré Kouamé of the Université Félix Houphouët‑Boigny notes that while the subsidy removal eases pressure on public finances, policymakers may need to consider targeted relief measures — such as tax credits for small transporters or temporary fare adjustments — to mitigate the social impact.
Kenya’s SME Financing Gap Persists
Access to affordable credit remains a critical barrier for small and medium‑sized enterprises (SMEs) in Kenya. Surveys by the Kenya National Bureau of Statistics indicate that roughly 70 % of Kenyan SMEs struggle to secure financing, limiting their ability to expand, invest in new equipment, and create jobs.
The experience of SevenTwenty Holdings, a Nairobi‑based manufacturer of metal accessories, illustrates both the challenges and the possibilities. Founded with an initial investment of about 30,000 Kenyan shillings and early support from family and friends, the company later received a grant from the Tony Elumelu Foundation. Today, SevenTwenty offers more than 40 product lines and employs over 60 workers — a trajectory that would have been far slower without external funding.
Nevertheless, many banks continue to classify SMEs as high‑risk borrowers, citing limited collateral and uneven cash‑flow histories. Guarantee schemes administered by the Central Bank of Kenya and various development partners aim to share risk with lenders, thereby encouraging them to extend more credit to smaller firms.
Policy Calls for More Favourable Financing Conditions
The Kenya Association of Manufacturers (KAM) is advocating for interest rates on SME loans to fall below 10 %, arguing that current rates often exceed 15 % and stifle growth. KAM also pushes for longer repayment tenors and simplified application processes, which could enable more entrepreneurs to seize expansion opportunities.
Improving access to affordable financing would not only help individual businesses scale but also strengthen Kenya’s broader industrial base, enhance export capacity, and contribute to the nation’s goal of creating decent jobs for its youthful population.
