Tanzania has joined a growing list of African nations seeking to exert greater control over their gold resources, launching a wide-ranging strategy to boost domestic refining and gold reserve accumulation.
The country is implementing policies that will allow it to capture more value from gold production, reduce reliance on raw exports, and increase fiscal and monetary benefits. These efforts mirror broader shifts across the continent, where countries are reassessing how they manage and profit from mineral wealth.
One of the key measures includes a government directive requiring gold miners and traders to sell 20% of their output to the Bank of Tanzania. Introduced in late 2024, the policy aims to build up the country’s gold reserves, with the central bank already purchasing over 400 kilograms in the past year and targeting up to six tonnes going forward.
In parallel, Tanzania is expanding its refining capacity. Several domestic facilities, such as the Mwanza Precious Metal Refinery and Geita Gold Refinery are now operational, with support from the government to ensure a steady supply of gold, particularly from small-scale miners. These refineries are part of the government’s plan to process more gold within the country, reduce smuggling, and create formal markets for artisanal producers.
The government is also pursuing international certification standards for its refined gold, aiming for recognition by the London Bullion Market Association. This would enable Tanzania’s gold to qualify for use in global central bank reserves, opening new avenues for export earnings and monetary stability.
To support these reforms, the 2023/24 national budget introduced incentives to promote domestic refining. These include tax exemptions, reduced royalties on locally refined gold, and policy changes to ease regulatory burdens on registered refiners.
Tanzania’s approach reflects a growing trend among gold-rich African nations to assert more sovereignty over natural resources. In recent years, countries like Mali and Burkina Faso have taken similar steps by investing in domestic refineries and enforcing stricter export rules.
While Tanzania’s moves have been welcomed by many local stakeholders, some international mining firms and analysts are watching cautiously. The success of the reforms will depend on the government’s ability to maintain investor confidence while ensuring steady supply, efficient operations, and compliance with international standards.
Tanzania’s gold sector is one of the country’s top foreign exchange earners, and the government’s latest actions mark a significant shift from its past role as a raw exporter to one focused on value addition and long-term economic control.
If the strategy holds, Tanzania could emerge as a model for how African nations can leverage their natural resources to support broader national development goals.
