Gold exports hit record $4.3bn as prices soar

The BoT attributes the boom to soaring international prices, which climbed to $3,368 per troy ounce in August, compared with $3,340 in July.

“The price of gold bolstered by central bank acquisitions, strong safe-haven demand, and anticipations of interest rate cuts,” the central bank stated in part.

The revenue from gold exports has also surpassed travel receipts, which increased to $3.84 billion in the year ending August 2025, compared to $3.77 billion previously, suggesting continued strengthening of tourism activities, as international tourist arrivals grew from 2,051,404 to 2,287,377.

Despite the impressive numbers, analysts caution that not all the $4.3 billion from gold exports stays within Tanzania’s economy.

The figure reflects the gross export value, which includes earnings repatriated by foreign-owned mining companies after taxes and operating costs.

A lecturer at the Tanzania Institute of Accountancy (TIA), Dr Gorah Abdallah, explained that the cost of extraction and the ownership structure of large-scale mines limit how much of the revenue remains onshore.

“Extracting gold requires enormous investments in machinery and technology — something most local companies cannot afford,” he said.

“As a result, Tanzania relies heavily on foreign investors or joint ventures. Much of the export value goes to covering operational expenses, leaving only a portion as net inflows.” Dr Abdallah added that while gold production volumes are high, the retained value in the domestic economy could be low once costs, imports, and profit repatriation are accounted for.

“We need to be cautious and look at the real balance between production costs and actual income,” he said. He added; “The long-term goal should be building local capacity — through education, technical training, and financing — so Tanzanians can play a leading role in extraction and exports. That’s how the country can secure more value from its resources.”

The renewed dominance of gold exports has revived debates about transparency and fair revenue sharing in Tanzania’s mining industry.

Economics expert at Mzumbe University, Prof Haruni Mapesa, said that while the high prices present a golden opportunity for the country, the benefits depend on how effectively the government collects and manages mining revenues.

“It’s true that gold comes from both local and foreign companies, including joint ventures. But converting that into economic growth depends on the transparency of revenue flows — how much companies declare, how much tax is collected, and whether the government gets its rightful share,” he said.

Prof Mapesa said that Tanzania has made progress in reforming its mining laws over the past decade, but some contracts remain opaque.

“The government and regulators must review all existing contracts to ensure the country benefits fairly. When prices rise like this, it shouldn’t only be mining companies that gain — Tanzania as a nation should too,” he said.

The mining windfall is also having a macroeconomic impact. In its October 2nd, 2025, Monetary Policy Committee statement, BoT governor Emmanuel Tutuba reported that foreign exchange liquidity in the economy had improved significantly, supported by gold earnings, tourism inflows, and cash crop exports.

“The Shilling was stable against major currencies, appreciating by 8.4 percent against the dollar, compared with a modest appreciation of 0.7 percent in the preceding quarter,” said Mr Tutuba.

He added that reserves remained strong at $6.7 billion, enough to cover more than five months of imports — well above the country’s target and the East African Community benchmark.

“Foreign exchange liquidity is expected to continue improving, supported by seasonal tourism peaks, ongoing cash crop harvests, and high gold prices,” he said.

The exports boom aligns with a broader resilience in Tanzania's economy, which the central bank estimates expanded by 5.4 percent in the first quarter of 2025, up from 5.2 percent in the same period in 2024.

The key drivers to this growth were mining, agriculture, financial and insurance services, construction, and manufacturing activities.

The central bank projects a growth of more than 6 percent in the second and third quarters, with similar momentum expected in the fourth quarter, supported by strong public and private investment and robust export performance.