The government has finalized a series of strategic agreements for the domestic purchase and refining of gold, marking a major milestone in Tanzania’s efforts to strengthen its foreign exchange reserves and boost the contribution of the mining sector to the national economy.
Speaking at the signing ceremony held in Dodoma on June 16, 2025, Minister for Finance Dr. Mwigulu Nchemba announced that the Bank of Tanzania (BoT) will continue to implement its Gold Reserve Purchase Programme, acquiring gold refined to a purity of 99.9 percent from both large-scale producers and local gold refineries.
The new agreements were signed between the BoT and several gold companies, including Geita Gold Refinery (GGR), Shanta Mining, Backreef Mining, and the Geita-based gold refining facility operated by GGR.
The move aligns with the government’s target to purchase at least six metric tonnes of refined gold during the 2024/25 fiscal year.
“Through this programme, the Bank has already purchased five tonnes of refined gold over the past nine months. This strengthens our reserves and positions Tanzania to better navigate global economic shocks,” Dr. Nchemba said.
The Minister commended the Ministry of Minerals and the government’s negotiation team for their role in ensuring transparency and fairness in the process.
Minerals Minister Anthony Mavunde noted that the mining sector continues to register record growth thanks to legal reforms, tighter regulation of mineral trade, and improved governance. He said these efforts have significantly curbed mineral smuggling while enhancing revenue collection.
According to Mavunde, the sector contributed TSh165 billion to the government’s main revenue fund in the 2025/26 financial year.
This follows a sharp rise from TSh753 billion in 2023/24 to TSh970 billion by June 2025 just shy of the government’s TSh1 trillion target.
“This performance reflects a sector that is not only growing but also responding to the reforms initiated under the leadership of President Samia Suluhu Hassan,” Mavunde said, adding that the government remains committed to ensuring that minerals benefit all Tanzanians.
BoT Governor Emmanuel Tutuba praised the collaboration between the Ministry of Minerals, the Mining Commission, and the negotiation team, noting that the central bank will continue purchasing gold under the agreed terms, including the 20 percent domestic purchase mandate.
“The BoT is empowered by law to buy 20 percent of all gold produced and refined in the country. We are on track to meet our target of purchasing six tonnes this fiscal year,” Tutuba said.
Deputy Attorney General Samweli Maneno, who officiated the signing, emphasized that Section 59 of the Finance Act gives BoT the legal backing to acquire gold produced locally, helping retain value within the country.
In addition to securing refined gold, the government is planning to establish nine new metal mineral refining plants across Tanzania as part of its value addition strategy.
The development has been welcomed by industry stakeholders, who applauded President Samia for her bold reforms and her unwavering support for the growth and transformation of the mining sector.
