Dar es Salaam. The Bank of Tanzania (BoT) has ruled out selling its gold reserves despite global prices reaching historic highs, saying its purchases are intended to diversify the country’s foreign exchange stock rather than generate trading profits.
BoT Governor Mr Emmanuel Tutuba said the central bank would only consider selling gold if the country needed additional foreign currency, noting that the current position remains strong.
“Tanzania holds about $6.4 billion in foreign exchange reserves (excluding gold), enough to cover five months of imports,” he said. “We also continue to receive steady inflows of foreign currency from agricultural and mineral exports, as well as tourism.”
His remarks came as gold continued to show exceptional strength through October and mid-November. In mid-October, global prices hit a record high of around $4,180 per ounce.
Although early November saw a brief dip as the US dollar strengthened and expectations of Federal Reserve rate cuts softened, prices rebounded above $4,200 per ounce by November 13–14 amid renewed optimism that the Fed will cut rates in December.
From October to mid-November 2025, gold prices remained elevated, supported by expectations of lower interest rates, strong safe-haven demand, central bank buying and rising investment flows—despite occasional volatility triggered by shifting macroeconomic conditions.
On the mining front, small-scale miners are already feeling the impact of the price rally. Ms Nurath Athumani, Secretary of the Imalabuhabi Miners’ Group in Butundwe Division, Geita Region, said the surge had brought much-needed relief.
“Currently, gold prices have increased from about Sh80,000 to between Sh200,000 and Sh300,000 per gram,” she said. “For us miners, this is a significant blessing. It allows us to earn better returns on the long and difficult hours we spend in the mines.”
She said most of their gold is sold at the Geita Gold Market, which offers regulated and transparent pricing, as well as safer trading conditions than informal buyers.
“These prices give us hope for greater financial stability and better living conditions for our families,” she added.
Independent financial analyst Mr Christopher Makombe said the rising price of gold reflects ongoing geopolitical tensions that continue to push investors toward safe-haven assets. He noted that central banks worldwide remain active buyers.
“Higher prices mean Tanzania earns more dollars from exports, strengthening foreign reserves and helping stabilise the shilling,” he said. “This can ease inflationary pressures driven by imported goods, especially fuel and machinery.”
Mr Makombe added that higher prices boost profits for mining companies, resulting in increased government tax revenues. Rising prices also tend to attract new investments in exploration, extraction and processing.
“Tanzania could see expansion of existing mines, issuance of new mining licences and growing interest from foreign investors,” he said.
He noted that mining expansion stimulates demand for labour and local suppliers—such as transport, catering, engineering and other support services—and that small-scale miners stand to benefit from higher incomes, which could strengthen rural household earnings and reduce poverty.
Supporting sectors, including gold refining, banking, insurance and logistics, also benefit from a buoyant mining industry.
However, Mr Makombe warned that overreliance on gold revenues could expose the economy to global price fluctuations. “Diversification remains essential for sustainable economic development,” he said.
“Overall, higher gold prices are generally positive for Tanzania. They enhance government revenue, attract investment, create jobs and strengthen the shilling through increased foreign exchange earnings,” he stressed.
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