Tanzania is rapidly building one of Africa's biggest gold reserves, with its central bank buying nearly 28 tonnes of gold over the past 18 months, worth an estimated 3.7 billion dollars.
Tanzania purchases 28 tons of gold over past 18 months
FILE - In this Feb. 9, 2017 file photo the oldest gold bar of the German Bundesbank from the year 1917 is displayed in the bank's headquarter in Frankfurt, Germany.
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The move forms part of a strategy to strengthen the country's foreign exchange reserves and support the Tanzanian shilling.
A key policy introduced in 2024 requires mining companies and gold traders to sell 20 percent of their exported gold directly to the Bank of Tanzania, allowing the country to build reserves from its own production rather than relying on international markets.
Officials say the strategy has helped lift foreign reserves to around 6 billion dollars while also creating thousands of new bank accounts for small-scale miners and traders.
The move reflects a broader global trend, with many central banks increasing their gold holdings as they seek to diversify reserves and reduce reliance on dollar-denominated assets.