Tanzania plans to sell part of its gold reserves to help finance major infrastructure projects as external development funding becomes harder to secure, the government said. The move was confirmed by Planning and Investment Minister Kitila Mkumbo and reported by Businesstech.
President Samia Suluhu Hassan has instructed the central bank to begin preparations for a partial sale of bullion, though authorities did not disclose how much gold would be sold or when the transaction would take place. Tanzania’s gold reserves were valued at about $1.3 billion at the end of December 2025, according to figures cited by BusinessDay.
Mkumbo said declining donor support has forced the government to rethink its financing strategy. “We need cash. We have a lot of infrastructure projects that are going on and they need funding,” he said, adding that traditional sources of development finance are becoming less reliable, business insider Africa reported.
Analysts say the move reflects a broader trend across Africa, where governments are increasingly turning to domestic resources to plug funding gaps. However, they cautioned that selling reserves must be managed carefully to avoid undermining external buffers and investor confidence, according to Reuters.
Image Source: africabusinessinsight.com
