Tanzania Gold Exporters Must Allocate 20% of Gold to Central Bank

SEATTLE (Scrap Monster): Tanzania’s Mining Commission has ordered that all mining companies and traders involved in gold exports should set aside at least 20% of total gold for purchase by the Central Bank. The move is intended to help the bank achieve its objective of diversifying its foreign reserves.

It should be mentioned that in the most recent fiscal year, which concluded in June 2024, the Central Bank of Tanzania (BoT) started buying gold from regional dealers and miners. Over 418 kg of gold were bought by the bank in the most recent fiscal year. For the current fiscal year, it has set a goal to buy at least 6 metric tons of gold.

According to the nation's mining watchdog, the directive will go into force on October 1, 2024. As a result, Eye of Africa Ltd. and Mwanza Precious Metals Refinery Ltd., the two main mineral refineries, will receive the reserved quantity of gold from all miners and commodity merchants. The statement further stated that all payments will be made in accordance with the BoT agreements. But no information about the rates was given.

As at the end of July this year, Tanzania’s foreign exchange reserves stood at $5.29 billion. This is enough to fund the country's anticipated imports of goods and services for more than four months.

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