Tanzania is set to benefit greatly from the rising gold prices in 2025, with positive implications for its foreign exchange earnings and mining industry growth.
At the start of the year, gold was trading at about $2,625 per troy ounce, but it steadily climbed to around $3,391 per troy ounce by early June, signaling strong global demand and investor confidence.
Dr. Suleiman Misango, Director of Policy and Research at the Bank of Tanzania, explained that Tanzania’s gold reserves classified as monetary gold carry a premium value. This category of gold, held by central banks as part of official reserves, commands higher prices on international markets.
The country’s ability to export this type of gold presents a strategic opportunity to improve the balance of payments and strengthen foreign currency reserves.
In 2024, Tanzania’s gold production reached an all-time high of 60,000 kilograms, showing a rise from 55,000 kilograms in 2023.
The sector is a vital part of the economy, contributing over 10% to GDP and generating significant revenue. Gold exports amounted to about $2.7 billion in 2021 and have continued to grow with current mining investments and government initiatives.
Large-scale mines like Geita, Bulyanhulu, and North Mara lead production, while new projects such as the Nyanzaga Gold Mine are expected to boost output in the coming years, targeting over 200,000 ounces annually starting in 2027.
The recent price rally is also encouraging small-scale miners. Zacharia Soko, a small-scale miner from Ntababalale Mining Society, noted that higher gold prices have inspired miners to increase production, improving their livelihoods and attracting more people into the sector.
Tanzania’s new gold refining policy, effective from January 2025, requires mining companies to refine 20% of their gold locally. This move aims to add value, create jobs, and build technical expertise, which will help Tanzania capture more wealth from its mineral resources.
Overall, the gold sector’s performance, supported by rising prices and strategic reforms, is important for Tanzania’s economic stability and growth.
