Tanzania's gold exports reach the $4.3 billion mark as global prices rally

Dar es Salaam. Tanzania's gold exports have reached a historic high, surpassing $4.3 billion in the year ending August 2025, marking a 35.5 percent increase from the previous year, the Bank of Tanzania latest report indicates.

Monthly Economic Review (MER) for September 2025 says the surge is attributed to soaring global gold prices and strategic initiatives by the Tanzanian government to bolster the sector.

The MER report says that gold exports amounted to $4,322.3 million, up from $3,133.3 million in the previous year.

This substantial growth underscores gold's pivotal role in Tanzania's export economy, now surpassing travel receipts, which increased to $3.84 billion during the same period.

A significant factor contributing to this growth is the government's directive requiring mining companies and gold traders to reserve at least 20 percent of their gold for sale to the central bank.

This policy, effective from October 1, 2024, aims to diversify the country's foreign reserves and mitigate depreciation pressures on the Tanzanian shilling.

The central bank began its gold purchasing initiative in the previous financial year, acquiring 418 kg of gold, and plans to purchase 6 metric tons in the current financial year.

Tanzania's gold production reached a record 60,000 kg in December 2024, up from 55,000 kg in 2023.

This increase in production has been accompanied by a steady rise in export revenues, with gold exports reaching $3.843 billion in the year ending May 2025.

Economic Implications

The surge in gold exports has bolstered Tanzania's foreign exchange reserves, which amounted to $6.39 billion in August 2025, up from $5.38 billion in August 2024.

This increase has improved the country's import cover to 5.2 months, surpassing both national and East African Community benchmarks.

While the gold sector's growth has contributed positively to Tanzania's economy, analysts caution that not all the $4.3 billion from gold exports remains within the domestic economy.

The benefits are often offset by the repatriation of profits by foreign mining companies and the challenges of translating export revenues into tangible domestic development.

Tanzania's gold export sector has demonstrated remarkable growth, driven by favourable global market conditions and strategic government policies.