Tanzania Mirrors Ghana in Gold Purchase Scheme to Bolster National Reserves

African central banks are increasingly intervening in the market to harness their mineral wealth and shield domestic economies from global currency volatility. The Bank of Tanzania (BoT) has launched a domestic gold purchase scheme, buying 29 tonnes of gold for its monetary reserves.

The BoT's strategy mirrors Ghana's GoldBod initiative, which aims to purchase 2.45 tons of gold weekly directly from local miners using the domestic currency. This reorganized market positions the government as the central authority and primary off-taker for transactions involving artisanal and small-scale miners.

By mid-2026, GoldBod had purchased over 135 metric tons of gold, utilizing it to execute complex 'gold-for-oil' barter agreements that bypassed the need for scarce US dollars. This proactive intervention ensures that the central bank maintains an exact audit of production sources, sale prices, and refining destinations.

The BoT's move forces a reevaluation of the artisanal mining sector, which is now critical to the sovereign reserve. By providing a guaranteed, fair-price domestic buyer, the BoT incentivizes these miners to operate within the formal economy, generating reliable tax revenue and expanding rural financial inclusion.