The Bank of Tanzania has purchased approximately 28 metric tons of gold over the past 18 months, according to a statement released Wednesday by the Ministry of Finance.
Central Bank Governor Emmanuel Tutuba revealed the $3.68 billion stockpile during an International Monetary Fund and World Bank meeting in Gambia. The aggressive accumulation aims to bolster international reserves and defend the local shilling currency.
The strategic buy-up comes amid a broader regional trend. African nations are increasingly leveraging domestic precious metals to buffer against persistent global inflation, rising geopolitical risks, and intense foreign exchange fluctuations.
Tanzania, a top-ten gold producer on the continent, accelerated its program following a September 2024 regulatory directive. The mandate forces all domestic mining firms and exporters to allocate a minimum of 20% of their gold to the central bank.
The bullion strategy operates alongside Tanzania’s existing foreign currency reserves. Those holdings currently stand at $6 billion, providing 4.3 months of import cover, which satisfies the country’s four-month minimum statutory threshold.
The domestic buying initiative has also triggered widespread financial formalization. Over 4,000 new commercial bank accounts have been opened by local mineral traders and small-scale miners, significantly reducing informal black-market operations.
To incentivize compliance, the central bank enforces a strict 24-hour payment window for all local bullion transactions. Purchases are settled at competitive rates directly tied to prevailing London Bullion Market Association prices.
Economic analysts note the gold strategy offers vital relief as traditional fiscal avenues tighten. The nation faces mounting development costs, a multi-billion-dollar infrastructure financing gap, and a sharp, historic reduction in external international donor support.
