
The Bank of Tanzania (BoT) has taken strides to empower local miners by purchasing gold worth over TZS 400 billion between October and December 2024. This initiative is part of the central bank’s broader efforts to boost the country’s foreign reserves while providing much-needed support to small-scale miners.
Under this program, the BoT acquired two tonnes of gold during the three-month period, offering miners favorable incentives, including global market prices, the elimination of inspection fees, and a reduction in royalty charges from 2%. These measures have already bolstered miners’ confidence, with many now opting to sell their gold directly to the central bank.
Joshua Mganga, an official in BoT’s foreign exchange unit, highlighted the initiative’s positive impact during a training session on value addition for women miners. He further explained that the government’s aim in purchasing gold is to increase foreign reserves, strengthen the economy, and help miners build a stable capital base.
Financial Support and Economic Empowerment
To address a key challenge faced by miners—access to loans due to lack of collateral—the BoT has stepped in to guarantee them through the central bank. According to Sadiki Nyanzuwa, BoT’s manager of government services, this move enables miners to secure funding for investments in equipment and production expansion.
“The government has stepped in to support miners by guaranteeing them through the central bank. This intervention, along with investments in equipment, aims to increase gold production and generate more revenue for the country.” he said.
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This program is particularly transformative for women miners, with 1,000 licenses issued under President Samia Suluhu Hassan’s administration and an additional 2,000 licenses being processed. The Tanzania Women Miners Association (Tawoma) has played a pivotal role by providing training on modern mining technologies, mineral processing techniques, and adherence to safety and environmental standards.
Promoting Women in Mining
Salma Ernest, secretary general of Tawoma, emphasized the importance of these efforts in encouraging women to participate actively in mining. She noted that the training will equip women to seize opportunities, obtain licenses, and venture boldly into mining, processing, and adding value to minerals.
Financial institutions have also stepped up to support this initiative. Azania Bank, through its Geita branch, has collaborated with Tawoma to educate women miners on financial management and the benefits of banking services. Similarly, CRDB Bank, through its “Imbeju” program for women and youth, has partnered with Tawoma to disburse loans worth Sh34 billion to gold miners, further empowering women in the sector.