TANZANIA'S CENTRAL BANK ACQUIRES 28 TONNES OF GOLD IN 18 MONTHS TO STRENGTHEN FOREIGN EXCHANGE RESERVES

Banjul, The Gambia – The Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba, has revealed that the Central Bank has purchased and accumulated approximately 28 tonnes of gold over the past 18 months, valued at approximately US$3.68 billion (based on the previous day's international gold prices), equivalent to about TZS 9.76 trillion.

The gold acquisition forms part of the Government's broader strategy to strengthen Tanzania's foreign exchange reserves, support the value of the Tanzanian Shilling, enhance financial sector stability, and promote long-term economic growth.

BOT HIGHLIGHTS GOLD RESERVE STRATEGY AT AFRICAN CAUCUS 2026

Governor Tutuba made the remarks while participating in a high-level panel discussion on Central Bank Gold Operations during the African Caucus 2026 meetings of the World Bank and the International Monetary Fund in Banjul.

The annual gathering brings together representatives from 54 African countries, including finance ministers, central bank governors, policymakers, development partners, and international financial institutions to discuss Africa's key economic priorities and financial reforms.

GOLD PURCHASE PROGRAMME BOOSTS RESERVES AND FORMALISES MINING SECTOR

According to Governor Tutuba, the gold purchasing programme has delivered benefits beyond strengthening the country's reserve assets.

He explained that the initiative has helped Tanzania diversify its reserve holdings by adding physical gold as an alternative reserve asset while simultaneously encouraging greater formalisation within the mining sector.

The programme has also promoted financial inclusion among mineral traders, particularly artisanal and small-scale miners, with the Bank of Tanzania facilitating the opening of more than 4,000 bank accounts across various financial institutions.

This increased participation in the formal financial system is expected to improve transparency within the mining industry while expanding access to financial services for miners and gold traders.

MARKET-BASED PRICING ENCOURAGES GOLD SALES TO THE CENTRAL BANK

Governor Tutuba attributed the programme's success to the competitive pricing mechanism adopted by the Bank of Tanzania.

He noted that the Central Bank purchases gold at the prevailing London international gold market price and settles payments within 24 hours of completed transactions.

"We pay miners and gold traders promptly within 24 hours after the sale and at the London gold market price of the day. This has created a strong incentive for miners and traders to sell their gold to the Bank of Tanzania," Governor Tutuba said.

The transparent pricing and prompt payment system have generated strong positive responses from miners and gold dealers, contributing to the steady growth of the country's gold reserves.

TANZANIA REPRESENTED BY SENIOR GOVERNMENT OFFICIALS

Tanzania's delegation to the African Caucus 2026 is led by the Minister for Finance, Ambassador Khamis Mussa Omar.

Other members of the delegation include the Minister of Finance and Planning of the Revolutionary Government of Zanzibar, Juma Malik Akil, Bank of Tanzania Governor Emmanuel Tutuba, and Tanzania's Ambassador to Nigeria, who is also accredited to The Gambia, Selestine Kakele.

AFRICAN CAUCUS PROVIDES PLATFORM FOR CONTINENTAL ECONOMIC DIALOGUE

Held at the Sir Dawda Kairaba Jawara International Conference Center in Banjul, the African Caucus serves as a strategic platform for African Governors of the IMF and the World Bank Group to engage collectively on issues affecting the continent.

The forum focuses on key priorities including debt sustainability, climate finance, infrastructure development, poverty reduction, job creation, trade expansion, and broader economic reforms aimed at accelerating sustainable development across Africa.

WHAT THIS MEANS FOR TANZANIA

The Bank of Tanzania's accumulation of nearly 28 tonnes of gold marks one of the country's most significant reserve diversification initiatives in recent years.

By increasing gold holdings alongside foreign exchange reserves, the Central Bank is strengthening Tanzania's financial resilience against external economic shocks while supporting currency stability. At the same time, the initiative is promoting greater formalisation of the mining sector, expanding financial inclusion among small-scale miners, and reinforcing confidence in Tanzania's macroeconomic management.