MWE Correspondent
Tanzania is moving closer to a major financial milestone as the central bank rapidly expands its national gold holdings, a development that reflects growing efforts to strengthen economic stability and reduce dependence on foreign currencies.
The Bank of Tanzania has already accumulated 19.3 tonnes of gold reserves as of mid-February, bringing the country within reach of its 20-tonne target much earlier than originally planned. When the programme was introduced in October 2024, officials expected it would take three years to achieve the goal. However, steady purchases and strong local supply have significantly accelerated progress.
Central bank Governor Emmanuel Tutuba said the gold accumulation strategy is part of a broader effort to protect the country’s financial system and ensure long-term resilience. He explained that the bank intends to continue buying gold while also selling limited quantities when necessary to maintain balance within Tanzania’s foreign exchange reserves.
This approach, he noted, allows the country to convert part of its reserve assets into gold without weakening its overall financial position. Instead, it helps diversify reserves and reduce exposure to risks associated with fluctuations in global currencies.
Gold has historically played an important role in strengthening national economies because it tends to hold its value during times of uncertainty. For central banks, holding gold provides an additional layer of security and helps support confidence in the country’s financial system.
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The programme has also created new opportunities within Tanzania’s mining sector. Small-scale miners are now encouraged to sell their gold directly to the central bank, helping to create a more transparent and reliable market. This shift is expected to reduce informal trading while ensuring that more of the country’s mineral wealth contributes to national development.
Officials say the initiative also supports broader monetary policy objectives, including stabilising the national currency and improving the country’s ability to respond to external economic shocks.
Economic analysts believe the strategy reflects a wider global trend, as many central banks have increased their gold holdings in recent years to protect against inflation and financial uncertainty. For Tanzania, the move is seen as a proactive step toward strengthening its financial independence.
The rapid progress of the gold reserve programme has also boosted confidence in the country’s economic management. Experts say building strong reserves can help Tanzania better manage exchange rate pressures, support investment, and maintain stability even during periods of global volatility.
With the 20-tonne target now within reach, Tanzania’s gold reserve strategy is increasingly viewed as a key pillar of its long-term financial planning. If the current pace continues, the country is expected to achieve its goal well ahead of schedule, reinforcing its position as one of Africa’s emerging economic success stories.
