Tanzania’s central bank has expressed cautious optimism about the country’s economic outlook as global gold prices edge higher, offering renewed support to export earnings and foreign exchange inflows.
The Bank of Tanzania (BoT) said the recent uptick in international gold prices could strengthen growth prospects for Africa’s fourth-largest gold producer, at a time when global economic conditions remain uncertain.
Gold is Tanzania’s single largest export, accounting for more than half of total export revenues, and plays a critical role in shoring up foreign reserves, supporting the shilling and financing imports. Higher prices are expected to improve the trade balance and boost fiscal revenues from royalties and corporate taxes.
“Improved performance in the gold sector is likely to provide additional momentum to economic growth and external sector stability,” the BoT said in its latest economic review, noting that mining continues to underpin Tanzania’s export base.
Global gold prices have risen in recent weeks, supported by expectations of looser monetary policy in major economies, geopolitical tensions and strong demand from central banks seeking safe-haven assets. Analysts say the trend has benefited gold-producing countries, particularly in Africa.
Tanzania has steadily expanded gold output over the past decade, driven by large-scale mines operated by companies such as Barrick Gold and AngloGold Ashanti, as well as a growing contribution from small-scale miners. Government reforms in the sector since 2017 have increased state participation and raised revenues, though they have also reshaped relations with foreign investors.
The BoT said stronger export receipts from gold could help offset pressures from higher import costs, especially for fuel and capital goods, while supporting foreign exchange reserves. Tanzania’s reserves remain above the level recommended for import cover, according to official data.
Economic growth is projected to remain resilient, supported by mining, agriculture, construction and services, even as authorities monitor risks linked to global financial conditions and climate-related shocks.
The central bank added that it would continue to pursue prudent monetary policy to maintain price stability, while leveraging favourable external developments, including stronger commodity prices, to support sustainable growth.
