Tanzania strengthens gold reserves as Central Bank buys 28 tons

Tanzania has strengthened its foreign exchange reserves after the central bank bought about 28 metric tons of gold over the past 18 months, a move aimed at supporting the country’s currency and improving financial stability. 

The purchases, valued at about $3.68 billion at current market prices, reflect a broader effort by central banks around the world to increase gold holdings as they diversify reserve assets amid economic uncertainty. 

For Tanzania, one of Africa’s largest gold producers, the strategy also allows the country to make greater use of its mineral wealth while reinforcing confidence in the Tanzanian shilling. 

Bank of Tanzania Governor Emmanuel Tutuba outlined the progress during the International Monetary Fund and World Bank meetings in The Gambia.

His remarks were later published in a statement by the Ministry of Finance on Wednesday.

Gold buying strengthens reserve strategy 

The Bank of Tanzania has been adding gold to its reserves since 2023 as part of a long-term plan to strengthen the country’s external financial position.

Gold has become an increasingly important reserve asset for central banks because it offers protection against market volatility and currency risks. 

The effort gained additional support in September 2024 when Tanzania’s mining regulator directed all gold exporters and traders to sell at least 20% of their gold output to the central bank.

The policy has helped the bank expand its holdings while creating a reliable domestic source of supply.

The mining sector sees wider benefits 

Tutuba said the gold purchase program has encouraged greater participation in the formal financial system.

More than 4,000 new accounts have been opened by mineral traders and small-scale miners since the initiative began, broadening access to banking services across the sector.

The governor also said Tanzania holds about $6 billion in foreign exchange reserves, enough to cover approximately 4.3 months of imports.

The reserve position provides an added buffer against external shocks while supporting the country’s broader economic goals.

Gold remains central to Tanzania’s economy 

As one of Africa’s top 10 gold producers, Tanzania is using its mining industry to reinforce its financial position.

The central bank’s continued gold purchases underscore the government’s focus on building stronger reserves while supporting currency stability and long-term economic resilience.