Tanzania’s Gold Debate: Government Plans to Tap Reserves After Aid Cuts | SWT Images
Tanzania is among Africa’s biggest gold producers, and its gold reserves stood at about $1.3 billion at the end of December 2025.
Finance officials say the country faces a shrinking fiscal cushion as traditional development partners put aid and budget support on pause following political unrest tied to last October’s election.
Planning and Investment Minister Kitila Mkumbo said in London that the government intends to use part of the gold to back infrastructure spending, as donor funding retreats.
The move has sparked debate among economists, opposition figures and business leaders over using strategic reserves to fill short-term budget gaps instead of seeking loans or private investment.
The Bank of Tanzania, which actually holds the metal, clarified that selling gold is part of reserve management and is decided based on market conditions, not direct government orders.
Proponents say tapping gold now could inject liquidity into stalled projects that need cash.
Opposition politicians warn that this could weaken long-term financial buffers that help the country weather future shocks.
