DAR ES SALAAM — The Bank of Tanzania (BoT) has sold approximately five tonnes of gold after international prices reached favourable levels, highlighting how the country is using the precious metal to manage its reserves, generate foreign exchange and support financial stability.
BoT Governor Emmanuel Tutuba said the central bank had accumulated approximately 35.4 tonnes of gold before the latest transaction, leaving it with about 30 tonnes following the sale. The bank sold the gold at approximately US$4,640 per ounce after assessing international market conditions.
The transactions form part of the central bank’s reserve management strategy, which involves buying and selling gold depending on market prices and broader financial conditions. The Bank of Tanzania Act provides for the acquisition and sale of gold as part of its responsibilities in managing national reserves.
“We purchased gold not only to support the value chain, but also to conduct business, obtain foreign exchange and strengthen the value of the shilling,” Mr Tutuba said.
The strategy comes as Tanzania seeks to maintain adequate foreign exchange reserves amid rising import costs and uncertainty in international markets. According to the Bank of Tanzania’s Monetary Policy Committee, foreign exchange reserves remained above US$6 billion in September, equivalent to approximately 4.3 months of import cover.
Higher gold prices can also benefit the wider economy by increasing export earnings, even when the quantity of gold exported remains unchanged. This makes the performance of the global gold market important not only to mining companies, but also to foreign exchange availability and the country’s external position.
For Tanzanian businesses, stronger gold earnings can help support the supply of foreign currency needed to pay for imported machinery, production inputs and other goods. However, the benefits depend on broader economic conditions and how effectively export earnings translate into stability and productive investment.
The central bank’s approach also demonstrates that gold has a role beyond mining and exports. It can serve as a reserve asset that is actively managed according to market conditions.
As Tanzania continues developing its gold industry, the challenge will be to balance reserve management with efforts to expand local participation in mining, processing and related services, ensuring that the sector contributes to both financial resilience and wider economic opportunities.