Tanzania’s decision to mandate the sale of a portion of its gold production to the Bank of Tanzania (BoT) is emerging as a deliberate strategy to protect the shilling and strengthen the country’s economic foundations.
Senior Geologist from the Ministry of Minerals, Benjamin Mikomangwa, said at the 8th Mining Technology Exhibition in Geita that the central bank’s reserves are more than an asset—they are an insurance policy against financial instability.
According to him, gold reserves provide a reliable hedge during times when currencies depreciate, ensuring that the purchasing power of Tanzanians is not eroded by inflation.
The reserves also boost investor confidence, which is critical for sustaining foreign direct investment and creating stability in financial markets.
Mikomangwa explained that the accumulation of gold gives the country stronger leverage on international financial platforms, allowing access to loans on favourable terms and reinforcing its credibility in the eyes of lenders.
“A country with strong gold reserves projects stability, and stability attracts investment,” he noted.
Figures from the Bank of Tanzania show that by August 31, 2025, the institution had accumulated nine tonnes of gold, valued at more than TZS2 trillion.
This marks a shift in the management of mineral wealth, moving from short-term export gains to building long-term resilience.
Observers argue that in an era of global market uncertainty, Tanzania’s approach underscores the role of natural resources in economic governance.
Gold is no longer treated solely as a tradable commodity but as a reserve instrument central to maintaining the stability of the shilling and shielding the economy from external shocks.
The Geita Mining Technology Exhibition has highlighted this evolving perspective, showing how gold continues to anchor Tanzania’s broader economic strategy while shaping policy discussions on investment, reserves, and resilience.