For institutional gold buyers operating in Africa, the challenge is rarely supply — it is structure.
Across many African jurisdictions, serious buyers understand that local sellers often require pre-financing or visible funds to mobilise gold. The real question is how to pre-finance transactions without exposing capital to unnecessary counterparty, execution, or regulatory risk.
This is where transaction structure becomes critical.
The problem with seller-driven pre-finance
In many African gold markets, buyers are commonly asked to either wire funds directly to a seller or seller-nominated account, or accept seller-controlled timelines for inspection, verification, and payment.
While this approach is widespread, it creates three material risks:
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Loss of control over buyer funds once they are in-country
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Inspection and verification processes driven by the seller, not the buyer
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Limited buyer-side recourse if the transaction breaks down
For institutional buyers, funds, and regulated entities, this risk profile is often unacceptable.
A buyer-controlled, Africa-wide alternative
Amanda Clinton Services has developed a licensed nominee and buyer-side representation structure designed for institutional and large-volume buyers operating across Africa who understand pre-finance requirements but insist on control, transparency, and regulatory compliance.
The core principle is straightforward:
Funds can be made visible to enable sourcing, without being released until gold is verified and approved.
How the structure works in practice
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A licensed local entity within the relevant African jurisdiction is established or engaged to act as buyer-side nominee.
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The nominee acts strictly under a confidential agency mandate, with no trading discretion or beneficial ownership.
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Buyer funds are wired into a controlled or blocked in-country bank account held by the nominee.
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The bank confirms that funds are received, available, and restricted, issuing Proof of Funds acceptable to local sellers.
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Based on this confirmation, gold is sourced and presented.
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Gold is physically inspected and verified under authorised local procedures.
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Funds are released only after buyer approval.
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Title transfers, followed by secure export under applicable licences.
At no point does the seller control the buyer’s funds.
Why institutions prefer this model in Africa
This structure offers several advantages that are particularly important in African markets:
Regulatory insulation
The buyer does not appear directly in the local primary market or contract with miners where restrictions apply.
Fund protection
Pre-financed funds are confirmed and visible, but not released unless contractual and verification conditions are satisfied.
Independent local representation
A licensed local counterparty acts exclusively for the buyer, not the seller, reducing execution and conflict risk.
Audit-ready documentation
Funds and gold move through a traceable, bankable process suitable for internal compliance, audit, and risk committees.
Confidentiality and governance
Under the nominee arrangement:
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The end buyer remains undisclosed to sellers.
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All economic interest, control, and decision-making remain with the buyer.
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The nominee has no beneficial ownership or trading discretion beyond agreed professional fees.
This enables buyers to scale volumes across multiple African jurisdictions while maintaining confidentiality and governance discipline.
Designed for serious, long-term buyers
This structure is not intended for spot traders or speculative transactions. It is designed for:
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Institutional off-takers
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Funds and family offices
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Large refiners and trading desks
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Buyers deploying significant pre-finance who require control across Africa
Conclusion
Pre-finance is often unavoidable in African gold markets.
Loss of control is not.
By separating fund visibility from fund release, and anchoring transactions through licensed buyer-side nominees, institutional buyers can access gold supply across Africa while protecting capital, compliance, and reputation.
