The Bank of Tanzania (BoT) has stepped up implementation of the Domestic Gold Purchase Programme (DGPP), a government initiative designed to strengthen the mining sector, improve foreign exchange reserves, and ensure the country gains more value from its gold resources through a formal and transparent trading system.
As part of the continued rollout of the programme, the Mining Commission has announced the approval of SABGOLD Limited Refinery in Kahama, Shinyanga Region, as an official centre for receiving and refining gold destined for BoT purchase.
The move is expected to improve efficiency in gold trading and widen opportunities for miners and traders to participate in the formal market.
According to a statement issued by the Mining Commission’s Director of Licensing, Eng. Aziza Swedi, on behalf of the Commission’s Executive Secretary, Eng. Ramadhani Lwamo, the refinery will officially begin operations on May 30, 2026.
The statement said the inclusion of SABGOLD Refinery is part of government efforts to strengthen control and transparency in the gold value chain, ensuring that more minerals are processed and traded through approved systems.
“Tanzania continues to implement the Domestic Gold Purchase Programme as a strategic measure to strengthen the mining sector and ensure the nation benefits more from its natural resources,” the statement noted.
Under the DGPP, BoT purchases gold directly from licensed miners and traders through designated and regulated channels.
The programme is intended to increase national gold reserves, support currency stability, and reduce reliance on foreign exchange markets by strengthening the country’s holdings in gold.
The Mining Commission explained that the approval of SABGOLD Refinery will also enhance local value addition by ensuring gold is refined domestically before entering the official BoT purchasing system.
This is expected to improve pricing efficiency, strengthen quality standards, and support the growth of mineral processing activities within the country.
Small-scale miners, who account for a large share of Tanzania’s gold production, are among the key beneficiaries of the programme.
The expanded network of approved centres is expected to make it easier for them to access formal markets, reduce dependence on informal buyers, and receive fair and transparent pricing for their minerals.
The government has emphasized that the programme is part of a broader strategy to transform the mining sector into a stronger pillar of industrialization and economic growth, in line with national development priorities.
Mining authorities have also urged miners, traders, and other stakeholders to follow official procedures and use only approved centres when selling gold under the programme. This is aimed at improving compliance, strengthening coordination, and ensuring that the sector operates in a well-regulated environment.
For further information on the implementation of the programme, stakeholders have been advised to contact Dr. Anna Lyimo through +255 756 389 128 or Mr. Joshua Maganga through +255 675 995 014.
The continued expansion of the Domestic Gold Purchase Programme reflects Tanzania’s commitment to building a more structured and beneficial mining sector, where the country retains greater value from its mineral wealth while improving opportunities for local producers.
