Tanzania has announced plans to sell a portion of its gold reserves to finance key infrastructure projects, as declining donor support pushes the government to seek alternative funding sources.
President Samia Suluhu Hassan authorised the move, instructing the Bank of Tanzania to proceed with a partial sale of its gold holdings, according to Kitila Mkumbo, Minister of State in the President’s Office.
The government however, has not disclosed how much gold will be sold.
Data released last week shows that Tanzania’s gold reserves were valued at 3.3 trillion shillings (approximately $1.3 billion) as of the end of December, highlighting the scale of resources available for the initiative.
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Mkumbo noted that shifting global priorities have reduced aid flows to Africa, prompting governments on the continent to rely more heavily on domestic resources to meet fiscal needs.
The planned sale comes as global gold prices hover near record highs, potentially placing Tanzania in a stronger position to raise funds.
Since 2023, the country has been purchasing gold from local miners as part of efforts to build up its reserves.
Tanzania’s decision reflects a broader trend across Africa, where countries are grappling with increasingly uncertain budget support as the United States and European nations cut back on development aid to focus on domestic concerns, including defence spending.
Funding pressures have also been intensified by strained relations with Europe.
The European Union has criticised Tanzania following a disputed election that led to protests and reported fatalities.
In November, the European Parliament passed a non-binding resolution urging the suspension of a €156 million EU support programme for the country.
