By Business Insider Reporter
The Bank of Tanzania (BoT) has purchased a total of 15.37 tonnes of gold under its domestic gold buying programme, a move the central bank says is strengthening foreign exchange reserves and supporting the stability of the Tanzanian shilling.
BoT Governor Emmanuel Tutuba disclosed the milestone during a late-November 2025 visit by the Bank’s Board of Directors to the north-western regions of Mwanza and Geita, Tanzania’s key gold-producing belt. The tour, led by the Governor in his capacity as Board Chair, combined oversight of strategic public investments with on-the-ground engagement in the mining value chain.
The gold purchases form part of Tanzania’s broader effort to diversify reserve assets, reduce exposure to external shocks and better anchor macroeconomic stability at a time of volatile global currencies and tightening international financial conditions.
Gold, long viewed as a safe-haven asset, has gained renewed prominence among central banks across emerging and frontier economies seeking to hedge against inflation and geopolitical risk.
Mining meets infrastructure-led growth
In Mwanza, the BoT Board paid a courtesy visit to Regional Commissioner Said Mtanda, who highlighted progress on major infrastructure projects expected to lift the region’s contribution to national output.
These include the Standard Gauge Railway (SGR) extension and the construction of a modern passenger and cargo terminal at Mwanza Airport, both designed to improve logistics, trade and investment flows around Lake Victoria.
Mr. Mtanda also pointed to the completion of the J.P. Magufuli Bridge and increased use of large cargo vessels on Lake Victoria as catalysts for growing cross-border trade between Mwanza and neighbouring Uganda, reinforcing the region’s role as a commercial gateway.
Boost for small and medium-scale miners
In Geita, Acting Regional Commissioner Hashim Komba, who is also the Geita District Commissioner, commended BoT for the effective rollout of its gold buying programme and its regular participation in the National Mining Technology Exhibitions hosted in the region.
He said the initiative had improved transparency, strengthened sector oversight and provided a reliable market for small and medium-scale miners, helping them formalise operations and access better prices.
Under current policy, large-scale gold producers are required to sell a portion of their output to the central bank, while BoT has also positioned itself as a credible buyer from domestic refineries – linking reserve accumulation directly to local value addition.
Value addition and refining capacity
The Board’s itinerary included visits to the Mwanza Mineral Market and the Mwanza Precious Metals Refinery, before proceeding to the Geita Mineral Market and Geita Gold Refinery. Officials were briefed on trading volumes, pricing mechanisms and advances in gold processing technology, underscoring the country’s push to move up the value chain rather than exporting raw minerals.
These investments align with Tanzania’s wider industrialisation agenda, which prioritises local refining, job creation and stronger fiscal returns from the extractive sector. Mining remains one of the country’s fastest-growing industries and a key source of export earnings, alongside tourism and agriculture.
Strategic implications
Economists say the accumulation of more than 15 tonnes of gold by the central bank sends a strong signal to markets. By tying reserve management to domestic production, Tanzania is seeking to lock in value locally, stabilise its currency position and enhance resilience against external financing pressures.
As global central banks continue to recalibrate reserve strategies, Tanzania’s gold-backed approach highlights how resource-rich economies can leverage natural endowments to support macroeconomic objectives – provided governance, transparency and sustainability remain central. The BoT Board’s visit, officials said, offered a timely opportunity to assess both the economic impact of strategic infrastructure and the growing contribution of mining to national development – two pillars increasingly shaping Tanzania’s medium-term growth trajectory.
