Minister of Minerals Dr Doto Biteko confirmed on Friday that the government has started the process of establishing its own national gold reserve.

Biteko made the revelation in response to contributions from Members of Parliament on the mining budget, which was tabled on April 27, 2023.

“The Central Bank has informed the Mining and Energy Committee that the regulation for gold purchases is ready,” Dr Biteko said.

“The Central Bank has already started purchasing gold, and as we speak, they have acquired 400 kilograms of gold,” he added.

The establishment of a National Gold Reserve is not a new initiative in Tanzania.Since 1990, the Central Bank has held a Gold Reserve, but this practice ended in 2002.

However, on June 13, 2021, when President Samia Suluhu Hassan was launching a gold refinery in Mwanza, she hinted that the refinery would enable the Central Bank to start buying gold in accordance with the law, thus enabling the country to have its own gold reserve.

This report comes as there is a growing appetite among central banks to expand their gold reserves. According to reports from the World Gold Council, Central Banks collectively purchased 125 tonnes of gold in January and February.

Additionally, a report by Financial Times stated that an annual poll of 83 central banks indicated that two-thirds of the respondents thought that their peers would increase their gold holdings by 2023, with the majority citing geopolitical risk as the primary concern.

Gold accounts for at least one-third of Tanzania’s exports and is considered one of its strongest currency stabilization export products.

In the financial year 2021/22, gold accounted for approximately 25 per cent of Tanzania’s exports.