Tanzania plans to sell a portion of its gold reserves, valued at $1.3 billion, to fund major infrastructure projects, the government announced.
According to Minister of State Kitila Mkumbo, President Samia Suluhu Hassan has instructed the central bank to proceed with a partial sale, though the exact volume to be sold was not disclosed.
The move comes amid declining foreign aid, prompting governments across Africa to explore alternative funding sources for development. With gold prices near record highs, the timing could benefit Tanzania, which has spent years building its reserves by purchasing gold from local miners.
Political tensions with European partners have also contributed to reduced external support, reinforcing Dar es Salaam’s shift toward self-reliance in financing national growth.
Economists suggest that leveraging domestic resources could help Tanzania accelerate infrastructure development while reducing dependence on foreign funding, but careful management of reserves will be crucial to sustain long-term economic stability.
