Tanzania’s central bank has accumulated about 28 metric tonnes of gold over the past 18 months as part of a strategy to strengthen the country’s foreign exchange reserves, support the shilling and reduce its vulnerability to external economic shocks.
Bank of Tanzania Governor Emmanuel Tutuba said the purchases are now worth about $3.68 billion at current market prices, underscoring the country’s growing reliance on gold as a reserve asset amid heightened global economic uncertainty and volatile currency markets. He disclosed the figures during the International Monetary Fund and World Bank constituency meeting in Banjul, The Gambia.
The gold-buying programme forms part of broader efforts by Tanzanian authorities to diversify reserve assets beyond traditional foreign currencies while improving the central bank’s ability to stabilise the local currency. Gold is widely regarded as a hedge against inflation and geopolitical risks, making it an increasingly attractive reserve asset for central banks worldwide.
The Bank of Tanzania began purchasing domestically mined gold in 2023 following amendments to the country’s mining regulations. Those reforms were expanded in September 2024, when the government required all mining companies and gold exporters to reserve at least 20% of their output for sale to the central bank, ensuring a steady supply for reserve accumulation.
Tanzania ranks among Africa’s top 10 gold producers, making the strategy easier to implement than in countries that depend on imports. By sourcing gold from local miners, the central bank is also supporting domestic mining activity while keeping more of the country’s mineral wealth within the national economy.
The move reflects a broader trend among African central banks seeking to diversify reserve holdings. Countries including Kenya, Rwanda, Namibia and the Democratic Republic of Congo have either started buying gold or announced plans to increase their holdings as they look to reduce exposure to fluctuations in major reserve currencies.
Globally, central banks have emerged as some of the largest buyers of gold in recent years, driven by concerns over inflation, geopolitical tensions and rising uncertainty in international financial markets. Higher gold prices have reinforced the appeal of the precious metal as a long-term store of value and a tool for strengthening reserve portfolios.
For Tanzania, the expanding gold reserves are expected to enhance confidence in the shilling while improving the country’s external financial position. The accumulation also provides the central bank with an additional buffer against future economic shocks, supporting broader efforts to preserve macroeconomic stability as the country pursues sustained economic growth.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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