Tanzania Strengthens Gold Procurement Strategy with Landmark Mining Agreement
In a significant move to bolster national economic independence, Tanzania has signed a groundbreaking agreement with key gold mining firms and refineries to enhance gold purchases and strengthen foreign exchange reserves.
The strategic agreement, signed on Monday, involves major gold mining companies and the national gold refinery, marking a pivotal moment in Tanzania’s mineral sector development. The initiative aims to streamline gold procurement processes and increase the country’s financial resilience.
Finance Minister highlights the agreement’s critical objectives, emphasizing the importance of raising local refinery standards to meet international certification requirements. This move is expected to increase the global acceptability of Tanzanian gold and facilitate international market trading.
The Bank of Tanzania has already demonstrated impressive progress, exceeding its 2024/25 gold procurement target by purchasing 5.022 tonnes valued at $554 million. This achievement surpasses the initial $350 million target and underscores the nation’s commitment to leveraging mineral resources.
Minerals sector performance continues to show remarkable growth, with contributions to GDP rising from 9 percent in 2015 to 10.1 percent in 2024/25. Government revenue from the sector has simultaneously increased from 162 billion to 753 billion, with ambitious plans to reach 1 trillion.
The agreement mandates mining companies to allocate 20 percent of their production to local markets, providing the Bank of Tanzania with first refusal rights. This approach supports domestic gold procurement and promotes local value addition in the mining sector.
Experts view this development as a significant step towards opening global market opportunities, particularly for small-scale miners, by ensuring international quality standards and potentially securing better pricing for Tanzanian gold.
The strategic initiative reflects the government’s ongoing commitment to economic diversification and sustainable mineral resource management, positioning Tanzania as an emerging player in the global gold market.
