BoT purchases gold worth over Sh400 billion in three months
What you need to know:
- The gold, weighing two tonnes, was acquired between October and December 2024 under an initiative to offer miners market incentives
Geita. The Bank of Tanzania (BoT) has purchased gold worth over Sh400 billion within three months as the central bank provides incentives to the mineral traders.
The gold, weighing two tonnes, was acquired between October and December 2024 under an initiative to offer miners market incentives, including purchasing gold at global market prices, scrapping inspection fees, and reducing the two percent royalty charges.
Speaking during a training session on value addition for women miners, the BoT’s foreign exchange unit official Joshua Mganga highlighted the programme’s impact.
“These incentives have significantly boosted miners’ confidence in selling their gold to the central bank, compared to previous years,” said Mr Mganga.
He noted that the government’s goal in purchasing gold is to increase foreign reserves, strengthen the economy, and support local miners in building their capital base.
The manager of government services at BoT, Mr Sadiki Nyanzuwa, emphasised that many small-scale miners were previously ineligible for loans due to lack of collateral but the government has intervened.
“The government has stepped in to support miners by guaranteeing them through the central bank. This intervention, along with investments in equipment, aims to increase gold production and generate more revenue for the country,” said Mr Nyanzuwa.
He added that BoT’s direct involvement in gold purchases is part of a broader effort to recognise mining as a legitimate business and empower miners financially.
Geita Regional Commissioner Martine Shigella reiterated the government’s commitment to ensure that Tanzanians benefit from the country’s natural resources.
“In the past three years of President Samia Suluhu Hassan’s leadership, 1,000 women have been issued with mining licences. We are now in the process of issuing over 2,000 additional licences in Kigosi, an area previously designated as a forest reserve,” said Mr Shigella.
Mr Shigella noted that while 2,300 licences have been allocated, demand exceeds 4,000 applications. He directed authorities to advertise unallocated licences to allow unsuccessful applicants to reapply.
Geita mining officer Samuel Shoo highlighted the progress made by women in the mining sector.
“So far, 355 mining licences have been issued to women. Unlike in the past, where women were mostly involved in small-scale activities, they are now boldly investing in mining, processing, and adding value to minerals,” he said.
The secretary general of the Tanzania Women Miners Association (Tawoma), Ms Salma Ernest, said the value-addition training aims to equip women miners with modern mining technologies, mineral processing techniques, and strategies for adhering to safety and environmental standards.
“This training also encourages women to seize opportunities such as obtaining licences and actively participating in the mining sector,” Ms Ernest added.
The Manager of Azania Bank’s Geita branch, Ms Rhoda Baluya, explained the role of financial institutions in supporting women miners.
“With BoT guaranteeing miners, lending to women will become easier as the business generates a reliable income. We are educating them on record-keeping and the importance of using banking services,” Ms Baluya said.
CRDB Bank loan officer at the session added that the bank, through its “Imbeju” programme for women and youth, has partnered with Tawoma to provide loans to women miners. To date, the bank has disbursed loans worth Sh34 billion to gold miners.
