The Bank of Tanzania (BoT), signed landmark agreements with major gold mining companies and a local refinery to strengthen foreign reserves today with a view of promoting local value addition, and reduce dependence on external financing.
On Friday, BoT formalized gold purchase and refining agreements with Shanta Mining, Buckreef Gold, Geita Gold Mining, and the Geita Gold Refinery (GGR) under the government’s domestic gold purchasing initiative.
The agreements signed today guarantee the central bank priority access to 20 percent of the miners’ annual gold production, as stipulated by the country’s Mining Act.
The signing ceremony in Dodoma was attended by Finance Minister Mwigulu Nchemba, Minister of Minerals Antony Mavunde, and BoT Governor Emmanuel Tutuba.
“This is a major milestone in managing Tanzania’s mineral wealth,” said Finance Minister Nchemba. “By securing a steady supply of domestically produced gold, the Bank of Tanzania is boosting its foreign reserves while supporting local refining capacity to meet international standards such as the London Bullion Market Association (LBMA) certification.”
Since the program started, BoT has purchased 5.02 metric tons of refined gold worth about $554 million—surpassing its $350 million target for the 2024/25 fiscal year. The bank aims to purchase up to 6 metric tons of gold annually through this initiative.
Launched in 2022/23, the gold acquisition strategy is part of a broader plan to diversify foreign reserves and reduce vulnerability to external debt markets.
President Samia Suluhu Hassan’s administration has prioritized expanding the mining sector’s contribution to the economy and increasing local mineral beneficiation. The sector’s GDP share has grown from 9.0 percent in 2015 to 10.1 percent in 2024/25.
“This achievement guarantees more of our gold is refined at home and held as a strategic reserve, enhancing our financial sovereignty and resilience,” Nchemba added.
BoT emphasizes that accumulating gold reserves helps shield Tanzania from global market volatility by investing in a stable asset class.
Mining Minister Antony Mavunde highlighted the sector’s revenue growth, noting government earnings from mining increased from TZS 162 billion in 2015 to TZS 753 billion ($290 million) today, with a target to reach TZS 1 trillion soon.
“This progress is thanks to targeted policy reforms and strong leadership under President Hassan, who continues to champion local value addition and national ownership of mineral resources,” Mavunde said.
Industry players welcomed the agreements, saying they will attract more investment and position Tanzania as a regional hub for gold refining and trading.