Tanzania to boosts gold reserves through local purchase agreements
The Bank of Tanzania (BoT) has signed strategic agreements with four major gold producers and refiners Geita Gold Mining, Shanta Gold, Buckreef Gold, and Geita Gold Refinery (GGR) to acquire 20% of their annual gold output.
The initiative, formalized in Dodoma in the presence of key government officials, is part of a national strategy to enhance foreign exchange reserves, promote local value addition, and reduce dependence on external borrowing.
Mining Act
Finance Minister Dr. Mwigulu Nchemba highlighted that the agreements operationalize Section 59 of the Mining Act, which mandates miners to allocate a portion of their production for local sale, including to the BoT. He emphasized that this move supports President Samia Suluhu Hassan’s broader economic agenda by securing reliable gold sources, strengthening domestic refining industries, and progressing toward international accreditation under the London Bullion Market Association (LBMA).
Dr. Nchemba noted the BoT has already purchased over 5 tonnes of gold, worth USD 554 million, surpassing its target of USD 350 million for 2024/25. This milestone reflects growing confidence in the local mining sector, whose contribution to GDP has risen to 10.1% in 2024/25, up from 9.0% in 2015, according to Minister of Minerals Antony Mavunde.
BoT Governor Emmanuel Tutuba reiterated that the gold purchase programme, launched in 2022/23, is central to building financial self-reliance and strengthening foreign reserves. The proposed amendments to the Mining Act, tabled in Parliament on 12 June 2025, would require all mining companies with government agreements to dedicate 20% of their gold output to domestic trade and refining, with compliance expected within 30 days of the Finance Act’s enactment. The initiative aligns with Tanzania’s broader goal to become a regional gold refining and trading hub and reduce raw mineral exports.
