DODOMA, TANZANIA: In a landmark move to bolster the country’s foreign reserves and enhance the value of its mineral resources, the Government of the United Republic of Tanzania has signed pivotal gold purchase and refining agreements with key mining companies and the Geita Gold Refinery (GGR). The initiative, led by the Bank of Tanzania (BoT), marks a significant milestone in the nation’s effort to deepen its domestic gold market and secure strategic economic assets.
Gold Purchase Program Anchored in Law
Speaking at the signing ceremony held at the Kambarage Hall in Treasury Square, Dodoma, Minister for Finance, Dr. Mwigulu Nchemba, emphasized that the move is in direct alignment with Section 59 of the Mining Act. The law requires mining companies to set aside 20% of their production for sale within local markets—giving the Bank of Tanzania first legal right of purchase.
“This step ensures reliable sourcing for BoT's gold buying program and supports domestic gold refineries in meeting international certification standards such as those of the London Bullion Market Association (LBMA),” noted Dr. Nchemba.
Boosting Reserves and National Self-Sufficiency
According to the Minister, the initiative reflects the strategic vision of President Dr. Samia Suluhu Hassan to accumulate adequate foreign currency reserves, increase the mining sector's contribution to GDP, and promote local value addition in mineral processing.
“To date, the Bank of Tanzania has purchased 5 metric tonnes of gold, valued at USD 554 million—surpassing its target of USD 350 million. This is a historic achievement for our nation,” Dr. Nchemba stated.
He affirmed that with continued implementation, the BoT is on course to meet its 2024/25 fiscal year target of purchasing 6 metric tonnes of gold, helping solidify Tanzania’s foreign reserve position.
Long-Term Economic Impact
Minister Nchemba called on all stakeholders to sustain this government strategy, highlighting that gold prices have continued to rise globally—making gold an increasingly strategic reserve asset.
Minister of Minerals, Antony Mavunde, added that the mining sector’s contribution to GDP has grown from 9.0% in 2015 to 10.1% in 2024/25. Government revenues from mining have similarly risen from TZS 162 billion annually to over TZS 753 billion, with ambitions to reach TZS 1 trillion.
“This progress is a direct result of President Samia’s directive to increase value addition and deepen the role of mining in the national economy,” Minister Mavunde said.
Bank of Tanzania: A Strategic Gold Buyer
Bank of Tanzania Governor Emmanuel Tutuba explained that the Gold Purchase Program, launched in the 2022/23 fiscal year, forms part of Tanzania’s broader strategy to reduce reliance on external debt and build sustainable reserves.
“As of June 13, 2025, BoT has acquired 5,022.85 kilograms of pure gold—equivalent to USD 554.28 million—well above the 2024/25 goal of USD 350 million,” Governor Tutuba stated.
He affirmed that the BoT remains committed to expanding gold’s share in the national reserve portfolio, enhancing resilience and financial autonomy.
Mining Companies Support the Vision
Mining firms participating in the agreement—Shanta Mining, Buckreef, Geita Gold Mining, and Geita Gold Refinery (GGR)—praised the government’s efforts to strengthen the sector and pledged continued support. They noted the agreements would unlock broader opportunities for growth, investment, and sustainability in Tanzania’s gold value chain.
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