The Bank of Tanzania has accumulated approximately 28 tonnes of gold over the past 18 months as part of a broader national strategy aimed at strengthening the country’s foreign exchange reserves, supporting the stability of the Tanzanian shilling and reinforcing financial sector resilience. The development was announced by Bank of Tanzania Governor Emmanuel Tutuba during a session on central bank gold operations held alongside the 2026 African Caucus meeting of the World Bank Group and the International Monetary Fund in Banjul, The Gambia.
According to information released by Tanzania’s Ministry of Finance, the gold purchasing programme forms part of a wider effort to diversify the country’s reserve assets while increasing the role of domestically produced gold within the national financial system. Tanzania is among Africa’s leading gold producers and the initiative reflects a growing trend among resource rich African economies seeking to retain a greater share of the value generated from their mineral resources while strengthening macroeconomic resilience.
Governor Tutuba said the programme has contributed to expanding participation in the formal financial system, particularly among artisanal and small scale miners and licensed gold traders. More than 4,000 bank accounts have reportedly been opened by participants engaged in the gold trade, illustrating increased integration between the mining sector and regulated financial institutions.
The central bank purchases gold directly from miners and traders, with payments reportedly settled within 24 hours at prevailing London benchmark market prices. According to the governor, this payment framework has encouraged greater participation in the programme by providing transparent pricing and prompt settlement, while also supporting formal trading channels.
The accumulation of monetary gold has become an increasingly important component of reserve management for many central banks globally. Gold is widely regarded as a reserve asset that can contribute to portfolio diversification, reduce exposure to currency volatility and strengthen confidence during periods of global economic uncertainty. For African economies with significant mineral resources, domestic gold purchase programmes can also support local value retention while reducing dependence on external reserve assets.
Tanzania’s approach reflects a broader policy emphasis on strengthening domestic financial institutions alongside the country’s mining sector. By linking gold producers with the banking system, authorities aim to improve transparency, encourage financial inclusion and enhance the traceability of mineral production while supporting national reserve accumulation.
The announcement comes as several African central banks continue to review reserve management strategies amid evolving global financial conditions, fluctuating commodity markets and changing patterns in international capital flows. While approaches differ across jurisdictions, policymakers increasingly view prudent reserve diversification as an important component of long term macroeconomic stability.
The Southern African Times will continue to monitor developments in African reserve management, monetary policy and mining sector reforms as governments across the continent seek to balance resource development with financial resilience and sustainable economic growth.
