Tanzania Gold Reserves Hit US$3.8 Billion in Dollar Shift
Africa · Eastern
Key Facts
—Volume accumulated. The Bank of Tanzania bought roughly 28 tonnes of gold over 18 months through mid-2026.
—Current valuation. Governor Emmanuel Tutuba values the 27.5-tonne holding at roughly USD 3.8 billion.
—Reserve dominance. Gold now accounts for over 60 percent of Tanzania’s total foreign-exchange reserves.
—De-dollarisation push. The programme runs alongside a ban on using US dollars for domestic transactions.
—Currency impact. The shilling appreciated roughly 6.5 percent against the dollar during the accumulation period.
Tanzania has built its gold reserves to roughly 28 tonnes in eighteen months, making bullion the dominant asset in its foreign-exchange portfolio and signalling one of Africa’s most determined de-dollarisation drives.
A deliberate pivot to physical gold
The Bank of Tanzania launched its Domestic Gold Purchasing Programme on 25 September 2023 with a clear mandate. It aimed to bolster foreign-exchange reserves by acquiring and holding physical gold.
Governor Emmanuel Tutuba confirmed in July 2026 that the central bank had accumulated about 28 tonnes over the preceding eighteen months. At current spot prices, the 27.5 tonnes held by mid-June 2026 were worth roughly USD 3.8 billion.
The pace accelerated sharply from August 2025. Under a June 2025 mechanism, the government signed agreements with nine large-scale mines to purchase 20 percent of their gold output, paid in shillings at below-market prices.
How Tanzania gold reserves overtook dollar assets
By April 2026, Bank of Tanzania data showed gold holdings had surpassed foreign securities in value. Gold stood at roughly TSh8.3 trillion while US-dollar securities and other foreign instruments totalled about TSh7.2 trillion.
This means Tanzania gold reserves now account for well over 60 percent of total foreign-exchange reserves. Analysts estimate the country’s total reserves at roughly USD 6 billion, with gold making up the single largest component.
The central bank buys all gold in Tanzanian shillings, not foreign currency. This ties domestic mineral production directly into the monetary system and reduces demand for dollars in the local economy.
The de-dollarisation toolkit in practice
Tanzania’s gold-buying programme is one pillar of a broader de-dollarisation strategy. In June 2024, the government proposed a ban on using US dollars in local transactions, effective from July 2024.
The central bank subsequently instructed firms to stop pricing products and services in dollars. Regulations enacted in 2025 mandate exclusive use of Tanzanian shillings for domestic payments and pricing.
Finance minister Mwigulu Nchemba said gold purchases were raising external reserves and reducing reliance on foreign borrowing. The shilling appreciated about 6.5 percent against the dollar during the accumulation period, according to economists cited by CGTN Africa.
Why emerging markets are stockpiling bullion
Tanzania’s move fits a global pattern of central-bank gold buying not seen since the post-Bretton Woods era. Since 2022, emerging-market central banks have been acquiring gold at record rates.
The motivation is partly geopolitical. Dollar-denominated reserves held in foreign banks can be frozen or sanctioned.
Physical gold cannot be blocked by a correspondent bank and does not default.
This logic has gained traction after sanction episodes against countries such as Russia. Even nations not directly targeted are reassessing reserve-asset vulnerability and seeking self-custodied alternatives. The broader scramble for resource-backed monetary sovereignty is reshaping finance across the continent, as explored in our pillar Africa: The New Scramble.
Domestic politics and the infrastructure question
The gold stockpile has also entered domestic political debate. President Samia Suluhu Hassan reportedly directed the central bank to consider using part of the reserves for infrastructure projects such as roads and power stations.
The Bank of Tanzania has pushed back carefully. In February 2026, director of financial markets Emmanuel Akaro said planned gold sales were for liquidity and risk management after holdings exceeded board-approved targets.
Akaro insisted the sales were not meant to fund government projects. The tension between using gold as a reserve hedge and as a fiscal backstop will likely persist as donor funding declines.
What the strategy signals to investors and rivals
For international investors, Tanzania is signalling a priority on self-custodied, non-dollar assets to underpin its currency. The country is effectively monetising its gold output into sovereign reserves rather than relying on external creditors.
The concentration risk is real. With gold now over 60 percent of reserves, Tanzania is heavily exposed to commodity-price swings in a single non-yielding asset.
For Western partners, the shift reduces the share of US Treasuries and dollar instruments in Tanzanian reserves, marginally eroding financial use. For other resource-rich emerging economies, Tanzania offers a practical template pairing local-currency mandates with resource-backed reserves.
Connected Coverage
Frequently Asked Questions
How much gold has Tanzania’s central bank bought?
The Bank of Tanzania has accumulated about 28 tonnes of gold over eighteen months through mid-2026. As of June 2026, holdings stood at 27.5 tonnes worth roughly USD 3.8 billion at current market prices.
This makes gold the largest single component of the country’s foreign-exchange reserves.
Why is Tanzania buying gold instead of holding dollars?
Tanzania is pursuing a deliberate de-dollarisation strategy to reduce exposure to US-dollar assets and the geopolitical risks they carry. Physical gold cannot be frozen or sanctioned by foreign banks.
The programme also ties domestic mineral wealth directly into the monetary system and supports the Tanzanian shilling.
Will Tanzania sell any of its gold reserves?
The Bank of Tanzania signalled in February 2026 that it may sell part of its gold holdings after exceeding board-approved targets. Officials describe this as routine liquidity and risk management, not funding for government projects.
The central bank intends to continue purchasing gold even as it conducts selective sales.
Sources
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