Bank of Tanzania Boosts Gold Purchases, Empowers Women Miners with Strategic Initiative
The Bank of Tanzania (BoT) has made a significant economic move by purchasing gold worth over 400 billion Tanzanian shillings within just three months. This strategic initiative aims to provide substantial market incentives to mineral traders and support the national mining sector.
Between October and December 2024, the central bank acquired two tonnes of gold through an innovative program designed to encourage miners. Key incentives include purchasing gold at global market prices, eliminating inspection fees, and reducing royalty charges from two percent.
The government’s primary objectives in this gold purchasing strategy are multifaceted: increasing foreign reserves, strengthening the national economy, and supporting local miners in building their financial foundation. By directly engaging in gold purchases, the central bank is recognizing mining as a legitimate business and financially empowering miners.
A notable aspect of this initiative is its focus on women in mining. In the past three years, 1,000 women have been issued mining licences, with plans to issue over 2,000 additional licences in previously restricted areas. Currently, 355 mining licences have been granted to women, signaling a significant shift from traditional gender roles in the mining sector.
Financial institutions are also playing a crucial role by providing easier lending options. With the Bank of Tanzania guaranteeing miners, banks are now more willing to extend loans, particularly through specialized programs targeting women and youth in mining.
The initiative represents a comprehensive approach to economic development, combining financial support, skills training, and regulatory support to transform Tanzania’s mining landscape and create more inclusive economic opportunities.
