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Tanzania's small-scale gold miners welcome levy reduction meant to curb smuggling, boost gold reserve
What you need to know:
- The levy on gold sales has been reduced to 4 percent for miners who sell directly to centres recognised by the Bank of Tanzania
Geita. Small-scale gold miners have expressed relief following the government’s decision to cut the mineral trading levy from 7 to 4 percent for those selling directly to the Bank of Tanzania (BoT).
The move is expected to boost formal trade, increase earnings for artisanal miners, and support the central bank’s gold purchase target of six tonnes annually, introduced in October 2024.
BoT is offering competitive prices and other incentives to encourage both large- and small-scale miners to sell all their gold to the bank.
The aim is to curb smuggling, improve transparency, and enhance Tanzania’s foreign reserves.
Speaking at the launch of a five-day training workshop for small-scale miners in Geita Municipality, Geita Regional Administrative Secretary (RAS), Mr Mohamed Gombati, said the tax reduction was a strategic move to promote official trade through BoT centres, particularly in Geita Region.
“Miners who trade their gold in the accredited centres will pay a 9.3 percent levy. But those selling the produce to refining centres will pay 6.3 percent, while only those selling directly to BoT-recognised centres qualify for the reduced 4 percent rate,” he said.
Geita hosts a normal gold buying centre, a BoT-accredited centre, and a gold refinery.
Mr Gombati described this as “a golden opportunity” for miners to operate transparently and earn more.
He noted that small-scale miners contribute about 40 percent of Tanzania’s mineral revenue—mainly from gold—yet face persistent challenges such as limited capital, outdated technology, unsafe working conditions, and poor legal awareness.
To address these issues, the government is implementing a national skills development programme targeting key sectors, including mining.
The initiative aims to equip Tanzanians with technical and entrepreneurial skills to improve productivity and job creation.
“This training empowers miners to work safely, increase output, and comply with laws and regulations,” said Mr Gombati.
Employment and Skills Development Acting Director in the Prime Minister’s Office, Alana Nchimbi, said the programme targets miners lacking knowledge in geology, explosives handling, and environmental regulations.
More than 250 miners are participating in the workshop, which covers mineral identification, safe use of explosives, environmental management, and value addition.
Senior geologist, Joseph Matalu, said the training promotes sustainable and inclusive mining practices, particularly among youth and persons with disabilities.
Geita Women Miners Association (Gewoma) Chairperson, Ms Asia Hussein, said the tax cut offers much-needed relief, adding that the workshop had enhanced awareness of mercury risks and financial literacy.
Speaking recently on the gold purchasing initiative, BoT Governor Emmanuel Tutuba said the Central Bank had surpassed its 2024/25 gold procurement target, having bought 5.022 tonnes worth $554 million by June 13—well above the $350 million goal.
He added that 162 kilogrammes are currently held in Tanzania’s account with the Bank of England, 2,775kg at BoT’s Mwanza branch, and 719kg in Dodoma, with more gold awaiting certification.
The minister for Minerals, Anthony Mavunde, said the sector’s GDP contribution rose from 9 percent in 2015 to 10.1 percent in 2024/25, with government revenue up from Sh162 billion to Sh753 billion—projected to reach Sh1 trillion soon.
He reaffirmed the government’s commitment to local beneficiation, citing the establishment of eight gold refineries and calling for further investment in value addition.
