The Bank of Tanzania has accumulated 19.3 tonnes of gold as of February 15, placing it within reach of a 20-tonne reserve target the institution initially expected to take three years to achieve. At the current pace, the central bank is on track to hit the milestone roughly 18 months ahead of schedule.

Governor Emmanuel Tutuba disclosed the progress during a local radio interview, adding that once the 20-tonne threshold is reached, the bank intends to begin strategic gold sales while continuing purchases. "To continue buying, we need to sell according to the strategic dollar allocation," he said. "So we will continue to sell appropriately and continue buying appropriately."

The gold acquisition program launched on October 1, 2024, under the Bank of Tanzania Act, with a dual mandate: formalize the domestic gold market by encouraging small-scale miners to sell directly to the central bank, and diversify the country's foreign reserves away from purely currency-denominated holdings. Additional objectives include enhancing transparency in the gold trade, strengthening sector regulation, and supporting the stability of the Tanzanian shilling.

Governor Tutuba clarified that gold acquisitions do not diminish overall foreign reserves. The central bank manages a portfolio that can include gold, foreign currency, securities, and IMF positions, and retains the legal authority to sell or invest reserves when market conditions are favorable. The institution is required to maintain reserves equivalent to at least four months of import coverage.

The rapid pace of accumulation reflects both elevated global gold prices and the growing formalization of artisanal mining, which now accounts for roughly 40% of Tanzania's gold output. For the broader economy, a larger gold reserve provides a hedge against currency volatility and strengthens Tanzania's external position at a time when the country is pursuing major capital-intensive projects.