The Bank of Tanzania has acquired approximately 28 metric tonnes of gold over the past 18 months as part of a broader strategy to strengthen the country’s international reserves and support the stability of the Tanzanian shilling.
According to Reuters, the gold purchases were confirmed by Bank of Tanzania Governor Emmanuel Tutuba, who said the holdings are now worth approximately $3.68 billion at current market prices.
The initiative reflects Tanzania’s growing emphasis on leveraging its mineral wealth to reinforce macroeconomic stability while enhancing the resilience of its financial system.
Governor Emmanuel Tutuba made the remarks during an International Monetary Fund and World Bank meeting held in The Gambia, with the comments later published in a statement by Tanzania’s Ministry of Finance.
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According to Reuters, the Bank of Tanzania has been purchasing gold for its reserves since around 2023 as part of efforts to strengthen the country’s external financial position.
The programme received an additional boost in September 2024 when Tanzania’s mining regulator directed all mining companies and gold exporters to allocate at least 20% of their export volumes for sale to the central bank.
Reuters reported that Tanzania ranks among Africa’s ten largest gold-producing countries, giving the country a significant domestic source for building its reserves.
Governor Emmanuel Tutuba said the programme has also contributed to greater financial inclusion within the mining sector.
According to Reuters, more than 4,000 new bank accounts have been opened by mineral traders and small-scale miners since the initiative began, expanding participation in the formal financial system.
The governor also noted that Tanzania currently holds approximately $6 billion in international reserves, enough to cover about 4.3 months of imports.
What This Means For Africa
Several African central banks are increasingly exploring ways to strengthen reserve management amid heightened global economic uncertainty, volatile commodity markets, and currency pressures.
For Governor Emmanuel Tutuba, Tanzania’s gold accumulation strategy represents a practical approach to utilising domestic natural resources to reinforce monetary stability and improve the country’s financial resilience.
Reuters reported that the value of the central bank’s gold purchases has already reached approximately $3.68 billion, highlighting the growing importance of gold within Tanzania’s reserve management framework.
Beyond supporting foreign exchange reserves, the programme has encouraged greater participation by small-scale miners and mineral traders in the formal banking system, helping expand financial inclusion.
For Africa, Tanzania’s approach may provide an important example for other resource-rich economies seeking to maximise the strategic value of their mineral sectors while strengthening macroeconomic fundamentals.
As global central banks continue diversifying reserve assets, gold has regained prominence as a store of value during periods of economic uncertainty.
Tanzania’s experience demonstrates how domestic resource policies can be aligned with broader monetary objectives, supporting currency stability, investor confidence, and long-term economic resilience.
The latest figures also reinforce the country’s position as one of Africa’s leading gold producers and highlight the increasingly important role that mineral resources can play in supporting financial stability and sustainable economic development.
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Image Credit: Guardian Reporter
