GEITA (Tanzania), Oct 14 (NNN-DAILYNEWS) — PRESIDENT Samia Suluhu Hassan has announced that the Bank of Tanzania (BOT) has set aside 1tri/-for a domestic gold purchase programme aimed at boosting the country’s gold reserves.
This initiative is designed to address foreign currency shortages, which have been a major obstacle to the development of various sectors, including mining.
“I assure you, BOT has allocated 1tri/- for purchases, and payments are made within 24 hours, ensuring we are ready to buy gold,” President Samia stated while closing the 7th Mining Technology Exhibition in Geita Region, Sunday.
She emphasized that the implementation of this program is already underway, with amendments made to the Mining Act under Section 59, requiring license holders and mineral traders to sell 20 percent of their gold production to the BOT.
She also revealed that the central bank is offering attractive incentives under the program.
These include reducing royalty fees from 6 percent to 4 percent, eliminating inspection fees, and providing zero-rated VAT, allowing sellers to claim input tax. Payments by the BOT are made in full upon receipt of the fire assay report from an approved refinery, ensuring swift and efficient transactions.
In addition to the gold purchase program, the President announced that the government has allocated 250 billion shillings as part of a loan guarantee scheme to support mineral buyers, enabling them to borrow and operate more effectively.
“All of this is to ensure that the mining sector grows, and that a certain percentage of wealth remains in the country as a future guarantee,” President Samia explained.
She further underscored the importance of the mining sector to Tanzania’s economy, highlighting its role in improving the lives of citizens, particularly small-scale miners, and contributing significantly to the nation’s foreign currency earnings.
“Last year, the mining sector contributed approximately 56 percent of all foreign exchange earnings, making it the leading sector in this regard. That is why we prioritize this sector,” she added. — NNN-DAILYNEWS