Tanzania’s central bank has accumulated about 28 metric tonnes of gold over the past 18 months as part of a strategy to strengthen the country’s foreign exchange reserves, support the shilling and reduce its vulnerability to external economic shocks.
Bank of Tanzania Governor Emmanuel Tutuba said the purchases are now worth about $3.68 billion at current market prices, underscoring the country’s growing reliance on gold as a reserve asset amid heightened global economic uncertainty and volatile currency markets. He disclosed the figures during the International Monetary Fund and World Bank constituency meeting in Banjul, The Gambia.
The gold-buying programme forms part of broader efforts by Tanzanian authorities to diversify reserve assets beyond traditional foreign currencies while improving the central bank’s ability to stabilise the local currency. Gold is widely regarded as a hedge against inflation and geopolitical risks, making it an increasingly attractive reserve asset for central banks worldwide.
The Bank of Tanzania began purchasing domestically mined gold in 2023 following amendments to the country’s mining regulations. Those reforms were expanded in September 2024, when the government required all mining companies and gold exporters to reserve at least 20% of their output for sale to the central bank, ensuring a steady supply for reserve accumulation.
Tanzania ranks among Africa’s top 10 gold producers, making the strategy easier to implement than in countries that depend on imports. By sourcing gold from local miners, the central bank is also supporting domestic mining activity while keeping more of the country’s mineral wealth within the national economy.
The move reflects a broader trend among African central banks seeking to diversify reserve holdings. Countries including Kenya, Rwanda, Namibia and the Democratic Republic of Congo have either started buying gold or announced plans to increase their holdings as they look to reduce exposure to fluctuations in major reserve currencies.
Globally, central banks have emerged as some of the largest buyers of gold in recent years, driven by concerns over inflation, geopolitical tensions and rising uncertainty in international financial markets. Higher gold prices have reinforced the appeal of the precious metal as a long-term store of value and a tool for strengthening reserve portfolios.
For Tanzania, the expanding gold reserves are expected to enhance confidence in the shilling while improving the country’s external financial position. The accumulation also provides the central bank with an additional buffer against future economic shocks, supporting broader efforts to preserve macroeconomic stability as the country pursues sustained economic growth.
Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
Khadija Sharife (South Africa/International)
Most Impactful Work: Her investigations for the Organized Crime and Corruption Reporting Project (OCCRP) and contributions to books like “Tax Us If You Can: Why Africa Should Stand Up for Tax Justice.”
Short Bio: An award-winning investigative journalist and senior editor for Africa at OCCRP, Khadija Sharife specializes in illicit financial flows, political economy, and environmental predation. Her work often uncovers complex international
corruption networks.
Shadow Bishop
A British man on safari walks into a bar far out in the reaches of a game reserve in Southern Africa, he stays at the bar for a while shooting the shit with the bartender and drinking like a fish, he offer to buy the barkeep a round and since no one else is within 2km of their small oasis of liquor the barkeep obliges. The englishman goes off to the bathroom to have a good old go at the porcelain, he\’s back and ready for a few more whiskeys. He\’s just sat down when suddenly in the distance he hears a scream. He looks over his shoulder and dismisses it as nothing, he turns to the barkeep and orders a drink, takes a sip and hears the scream again. He looks at the barkeep who just shrugs it off. A minute or two later he and the barman hear it again and go outside to take a look. They see a lone figure running towards them screaming, he spots them and lets out a cry, RUN!!!!! HE\”S COMING!!!!!
The barkeep and the Englishman both look at the terrified bedraggled sight before them, and try to calm him down, but he\’s completely inconsolable. They give him water and finally manage to get a word out of him but he struggles free from their grasp and run away screaming.
A few minutes later the same thing happens with a whole group of men running in and screaming, he\’s coming, he\’s coming the barkeep grabs hold of one of the men as he tries to sprint past the bar and tries to get information out of him, again no response other than terrified gibberish.
The barkeep and his customer are starting to get worried, they start to pack up before another group of horrified natives run up to the bar most of them flee but one tries to hide behind the bar, the barkeep pulls out a shotgun and points it at the terrified man\’s face, finally managing to coax some words out of him. \”He\’s coming for us, Vernon Koekemoer is coming for us, we have to hide!!! We have to get out of here.\” He gets up and tries to run but the barkeep grabs him, feeling trapped in a panic he grabs the barkeeps shotgun and blows his own head off. The Englishman and the barkeep look at each other starting to really panic now.
They look out of the window and off in the distance they see a tornado coming towards the bar, at the bottom of the tornado they see the hugest beast of a man they have ever seen, as he gets closer they spot that he is riding a rhinocerous and using a crocodile as a riding whip, with each smack of the crocodile across the back of the rhino the louder is screams and the faster it runs, the tornado following it getting ever larger.
The 2 look at each other and start to fortify their position, they\’ve got a gun and they\’re waaay to drunk to run, so they start piling bar stool and tables and anything they can get their hands on to make sure they\’ll be safe when he arrives. They\’re not gonna make it, they can see the man slowing down his rhino, by now the crocodile is nothing but reptile paste on the bruised rump of the half dead rhino, the rhino drops down dead from exhaustion and crashes to the ground right outside the bar the tornado loses it\’s last breath in a cloud of dust as the huge man crashes his way through the make shift barricade and charges up towards the bar where the 2 men have taken shelter, he grabs a bottle of the hardest liquor on the shelf and down the entire litre in 1 gulp, he peers over the bar sobbing and sees the 2 defenders cowering down behind the crates of beer, they look up at the mans\’ face and he stares at them with a look of complete and utter hopelessness, he stares at them for a half second and half screams, half sobs, \”Oh my god what are you still doing here!!! WE HAVE TO GET OUT OF HERE NOW!!!! Vernon Koekemoer is coming!!!!\”
Rooster
Shebeen – an unlicensed bar [sha-been] These are unlicensed bars usually found in low-income suburbs located outside of the major towns and cities, more commonly known as ‘the townships’.