Gold Purchases by the Central Bank Are a Shield for the Economy




📍Geita


It has been explained that the legal framework requiring gold traders in Tanzania to sell at least 20 percent of their production to the Bank of Tanzania (BoT) is a crucial step in safeguarding the national economy and strengthening the value of the Tanzanian shilling.


This was stated today, September 27, 2025, by Senior Geologist from the Ministry of Minerals, Benjamin Mikomangwa, during an interview with the Tanzania Broadcasting Corporation (TBC) at the 8th Mining Technology Exhibition taking place at Dr. Samia Suluhu Hassan Grounds, Bombambili, Geita Region.


He said that gold purchases through BoT aim to address the challenge of foreign exchange shortages and increase national reserves through gold stored in the Bank’s vaults.


“Purchasing gold through the Central Bank has multiple benefits, including boosting investor confidence, protecting the value of the shilling, and reinforcing economic stability even during times of global financial turbulence,” said Mikomangwa.


He further outlined other benefits, such as protection against inflation, since the value of gold rises when regular currencies depreciate, thereby safeguarding citizens’ purchasing power. He added that a large gold reserve also enhances international influence, as it elevates the country’s credibility in global financial platforms and enables access to concessional loans.


Mikomangwa emphasized that such reserves also build confidence in both domestic and international markets, as a strong gold reserve strengthens the financial system, attracts foreign investors, and protects local resources.


He stressed that gold reserves serve as a lifeline during emergencies, since in times of financial crises or market crashes, they can provide the Government with immediate financial relief.


According to the Bank of Tanzania’s financial report of August 2025, the Bank had strengthened its gold reserves to reach 9 tons, valued at more than TZS 2 trillion as of August 31, 2025.


The Geita Mining Technology Exhibition continues to serve as a platform for discussing opportunities, challenges, and new technologies driving the mining sector, with gold reaffirming its position as a cornerstone of the national economy.



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