The Bank of Tanzania has initiated  a  gold purchase program aimed at contributing to the development of the mining sector in the country and increasing foreign exchange reserves.

Speaking after a visit to the Geita Gold Refinery and the Mwanza Precious Metals Refinery Co. Ltd, the Governor of the Bank of Tanzania (BoT), Mr. Emmanuel Tutuba, announced that BoT has already purchased and refined 418 kilograms of gold.         

"As stated by the Minister of Finance, Hon. Dr. Mwigulu Nchemba, in the 2023/2024 budget, the Bank of Tanzania has allocated funds for the purchase of gold, and this year we plan to buy six tons of gold from small-scale miners and other stakeholders," he said.          

Governor Tutuba added that through the Export Credit Guarantee Scheme, BoT has set aside funds to increase exports and enhance the production and sale of imported goods within the country.

"We are  engaged in discussions to explore ways to support small-scale miners to access funds, mine gold, and sell it to gold refining factories so that, when refined, it can be sold to the Central Bank," he said.     

Additionally, Governor Tutuba urged large gold sellers to adhere to foreign exchange laws, requiring them to repatriate foreign exchange earnings within 90 days so as to contribute to the growth of the economy.  

Dr. Venance Mwasse, the CEO of the State Mining Corporation (STAMICO), also expressed gratitude to the Government for facilitating the construction of gold refining factories in the country. Through these factories, the Bank of Tanzania will be able to purchase and store gold, thereby increasing foreign exchange reserves to strengthen the overall national economy.

"STAMICO will collaborate with the Central Bank to ensure that small-scale miners receive loan guarantees to enable them to mine more gold and bring it to our gold refining factory in Mwanza, enabling the Central Bank to acquire more gold for our reserves," he said.        

The Bank of Tanzania is participating in the Sixth Mineral Technology Exhibition which is held at Bombambili grounds in Geita from September 20 to 30, 2023. These exhibitions provide a valuable opportunity to strengthen the partnership between the Central Bank and the mining sector in the country.