Tanzania has purchased about 28 metric tons of gold over the past 18 months to boost its foreign exchange reserves while supporting the shilling, Bank of Tanzania Governor Emmanuel Tutuba has said.
The purchases, valued at approximately $3.68bn at current market prices, form part of a broader strategy to diversify the country’s reserve assets and strengthen resilience against external economic shocks.
The initiative reflects a growing trend among central banks to increase gold holdings as they seek to diversify reserve portfolios amid currency volatility, inflation concerns, and geopolitical uncertainty. For Tanzania, the programme also links the country’s mining industry more closely with monetary policy by directing a larger share of domestically produced gold into official reserves.
Tutuba disclosed the figures during an International Monetary Fund-World Bank meeting in The Gambia on Tuesday, according to a statement released by Tanzania’s finance ministry on Wednesday. The meetings have focused heavily on economic resilience, debt sustainability and the uncertain global economic outlook.
The governor said the Bank of Tanzania has been building its gold reserves since around 2023 as part of a long-term reserve management strategy.
The programme began as central banks around the world accelerated gold purchases amid heightened geopolitical tensions, persistent inflation, and increased volatility across global financial markets.
According to the World Gold Council, central banks have recorded historically strong gold purchases in recent years as monetary authorities diversify reserve assets. Tanzania’s programme reflects that broader international shift while making greater use of the country’s domestic mineral resources.
The purchases also highlight Tanzania’s increasingly active approach to building official gold reserves using locally produced bullion.
The reserve-building programme has been reinforced by changes to Tanzania’s mining regulations.
In September 2024, the country’s mining regulator directed all mining companies and gold exporters to allocate at least 20 percent of exported gold for sale to the central bank.
The measure enables the Bank of Tanzania to source gold directly from domestic producers instead of relying solely on international markets.
Gold remains Tanzania’s leading mineral export and one of its most important sources of foreign exchange earnings. The metal accounts for a significant share of the country’s mineral export revenue, making it a natural choice for reserve accumulation. The reserve strategy also complements Tanzania’s infrastructure expansion plans, which are designed to strengthen transport corridors, ports and industrial capacity that support the mining sector.
As one of Africa’s top 10 gold producers, Tanzania is well positioned to convert part of its mineral output into strategic reserve assets while supporting broader economic stability.
Tutuba said the programme has also encouraged greater participation in the formal financial system.
More than 4,000 new accounts have been opened at financial institutions by mineral traders and small-scale miners since the initiative began.
The development should improve transparency across Tanzania’s gold trade while giving miners greater access to banking services, formal finance, and digital payment systems. It also complements Tanzania’s transition towards a cash-lite economy, where authorities are encouraging wider adoption of digital financial services.
