Geita, Tanzania – The Bank of Tanzania (BoT) has made significant strides in the gold sector, acquiring over Sh400 billion worth of gold in just three months. This move is part of a strategic initiative aimed at providing essential incentives to mineral traders.
In total, the central bank purchased two tonnes of gold from October to December 2024, a program designed to bolster miners by offering prices aligned with global markets, eliminating inspection fees, and reducing royalty charges by two percent.
During a recent training session focused on value addition for women miners, an official from BoT’s foreign exchange unit emphasized the positive impact these measures have had on miners’ willingness to sell gold to the central bank.
"These incentives have significantly boosted miners’ confidence in selling their gold to the central bank compared to previous years," the official stated.
The government’s initiative aims not only to enhance foreign reserves but also to stimulate economic growth and help local miners build their capital.
Mr. Sadiki Nyanzuwa, the manager of government services at BoT, highlighted that many small-scale miners had faced challenges accessing loans due to insufficient collateral but the government’s intervention through the central bank is changing that.
"The government is supporting miners by providing guarantees through the central bank. This, alongside investments in equipment, is expected to increase gold production and revenue generation," Mr. Nyanzuwa remarked.
BoT’s proactive involvement in gold purchases is part of a larger effort to acknowledge mining as a legitimate business and financially empower miners.
Geita Regional Commissioner Martine Shigella reinforced the government’s dedication to ensuring that Tanzanians benefit from local natural resources. He noted that under President Samia Suluhu Hassan’s administration, 1,000 women have been granted mining licenses, with plans to issue over 2,000 additional licenses in the Kigosi area, which was previously a forest reserve.
"Although 2,300 licenses have been granted, we have more than 4,000 applications pending. I have instructed authorities to publicize unallocated licenses to allow applicants to reapply," Mr. Shigella added.
In terms of progress for women in the mining sector, Geita mining officer Samuel Shoo reported that 355 mining licenses have been issued to women, who are now increasingly investing in mining and processing activities.
"The landscape has changed; women are no longer limited to small-scale activities but are now actively participating in value addition," he stated.
Ms. Salma Ernest, secretary general of the Tanzania Women Miners Association, emphasized the importance of training to equip women with modern mining technologies, processing techniques, and knowledge of safety and environmental standards.
"This initiative encourages women to pursue opportunities, including obtaining licenses and actively engaging in the mining sector," Ms. Ernest noted.
Highlighting the role of financial institutions, Ms. Rhoda Baluya, manager of Azania Bank’s Geita branch, explained how BoT’s guarantees will ease lending to women miners as their businesses develop consistent income streams.
"Financial literacy programs are essential. We are training them on record-keeping and the significance of banking services," Ms. Baluya shared.
Additionally, a loan officer from CRDB Bank discussed their partnership with the Tanzania Women Miners Association to deliver financial support to women miners through the “Imbeju” program, which has already disbursed Sh34 billion in loans to gold miners.
This comprehensive approach demonstrates the government’s commitment to expanding opportunities in the gold mining sector, particularly for women, while enhancing the nation’s economic stability.
