Tanzania Signs Milestone Agreement to Streamline Gold Purchases

Strategic Insights -

The Bank of Tanzania (BoT) has signed an agreement with key gold mining firms and the Geita Gold Refinery to streamline gold purchases and transportation within the country. The agreement aims to strengthen Tanzania's foreign exchange reserves by supporting the country's gold-buying program. Finance minister Mwigulu Nchemba emphasized the importance of local refineries meeting international standards for certification by the London Bullion Market Association (LBMA), which would increase the global acceptability of Tanzanian gold.

Key Takeaways:

  • The agreement signed on June 16, 2025, brings together Geita Gold Mining (GGM), Shanta Gold, Buckreef Gold, and Geita Gold Refinery (GGR).
  • The Finance minister urged local refineries to raise their operational standards to meet international requirements for certification by the LBMA.
  • The deal aligns with Section 59 of the Mining Act, which requires mining companies to set aside 20 percent of their production for local markets, including the BoT.
  • BoT had exceeded its 2024/25 gold procurement target, having purchased 5.022 tonnes worth $554 million as of June 13, surpassing the $350 million target.
  • Payments are made within 24 hours, and 162 kilogrammes of gold are currently held in Tanzania's account with the Bank of England.
  • Minerals minister Anthony Mavunde attributed the agreement to President Samia Suluhu Hassan's leadership and commitment to value addition in the mining sector.
  • Tanzania currently sends refined gold abroad for hallmarking, but the agreement aims to promote local beneficiation.

Statistics:

  • 5.022 tonnes of gold worth $554 million have been purchased as of June 13, 2025.
  • 162 kilogrammes of gold are currently held in Tanzania's account with the Bank of England.
  • 30% increase in the contribution of the mining sector to GDP from 2024/25.
  • Revenue to the government increased from Sh162 billion in 2015 to Sh753 billion in 2024/25.

Sources:

  • Finance minister Mwigulu Nchemba, "BoT signs agreement with Geita Gold Refinery and gold mining firms."
  • BoT governor Emmanuel Tutuba, "Gold purchase programme exceeds target, 5.022 tonnes bought at competitive prices."
  • Minerals minister Anthony Mavunde, "Agreement marks a significant step in Tanzania's economic development."
  • Mining Act, Section 59.
  • Bank of Tanzania's gold procurement target.
  • 2024/25 Mining sector statistics in Tanzania.
  • Geita Gold Mining (GGM) annual report 2025.