By Adonis Byemelwa
Dar es Salaam—Tanzania’s choice to sell some of its gold is now a vital way to gauge the economy, the government, and the people’s faith in it. The government is also having trouble because its budget is getting smaller, things are unstable at home, and it has no diplomatic allies.
What began as a technical discussion about how to manage reserves has grown into a national debate over how to use strategic assets, who should make choices about them, and whether the government can turn buried treasure into long-term wealth above ground.
In late January 2026, Kitila Mkumbo, the President’s Office Minister of State, confirmed the plan. This happened after Western countries pulled back on development aid a lot because of the deadly crackdown on demonstrators that erupted following the presidential election on October 29, 2025.
Groups that watch elections and human rights claim there were a lot of problems and violence. The European Union ceased giving money because of this, which made the effects of the U.S. decision to stop giving new foreign aid considerably worse. Official Development Assistance (ODA) hit an all-time high of $761 million in 2013. By 2025, it should be about $118 million.
The government has made it plain that it will continue working toward its development goals using resources from within the country. Gold is a key part of what they want to do. Tanzania is one of the best places in Africa to find gold.
Gold made up more than 22% of the country’s exports and brought in around $4.4 billion in 2025. In 2023, the Bank of Tanzania began buying gold again. By the end of 2025, it had saved up more than US$1.3 billion (about 18.9 tons). This was more than 36% of the country’s foreign assets.
Some high-ranking officials say that selling part of the reserve is normal and not hazardous. Prime Minister Mwigulu Nchemba told Parliament on January 31 that central banks are continually purchasing and selling gold. He also said that Tanzania, like many other countries, needs to keep a watch on its reserves because the world is continually changing.
The central bank has said the same thing over and over: since 2023, several central banks have changed how much gold they keep because tensions around the world have risen, and they do not want to depend on the U.S. dollar for too long. Both the policy itself and the way people have talked about it have made the conversation better.
Dr Bishop Benson e Bagonza is a well-known religious leader and public thinker in the Evangelical Lutheran Church’s Karagwe Diocese in Tanzania. He is one of the most vocal critics of the plan and what he perceives as the state’s lack of openness, confusing messages, and confusion.
In late January, Bishop Bagonza made a public speech that got a lot of attention. He said that different sectors of the administration were giving him answers that did not add up. He also said that some officials first said that no gold would be sold, but then changed their minds and said that some deals would happen.
Some people said that the move was meant to raise money for building things. He said that these fights have made people less trusting and spread false information. “When leaders talk about a problem this big in different ways, people have to guess what the truth is, and trust grows,” he said.
The most important thing, according to Bishop Bagonza, is to find out who owns something and who is in charge of it. He said that the gold reserves are not just owned by the government or the Bank of Tanzania; everyone in Tanzania owns them. Because of this, any decision to sell them must be apparent, have a strong legal foundation, and be overseen by Parliament.
He said that history may teach us a lot. He said that selling state assets without protections might lead to scandals like the IPTL and Escrow crises, which cost the country hundreds of millions of dollars and made people less trusting of public institutions.
He also made a more technical point: once gold is sold, anyone, even people from other countries, can buy it. He also said that Tanzania’s economy could be hurt if it did not have a good plan.
He said that changing the gold reserve could make the shilling weaker, which would make it easier for people to attack the country when things go wrong. Then he added, “A country is weak no matter how big its growth plans are.”
Professor Anna Kajumulo Tibaijuka, the prominent economist and former Executive Director of UN-Habitat, has emerged as one of the most respected voices urging caution over Tanzania’s plan to sell part of its national gold reserves. She does not entirely disagree with the idea, but she has said that the policy’s success or failure will depend entirely on how it is put into action.
In interviews and policy discussions, Professor Tibaijuka has said that selling a portion of the gold reserve can be justified during periods of economic stress, especially when traditional sources of financing are constrained.
Drawing on basic economic principles, she has argued that using savings to stimulate growth can be sound policy—provided the funds are invested in projects that clearly improve productivity and long-term economic efficiency.
However, her main worry is how things are done and how they are run. Professor Tibaijuka has emphasised that Tanzania’s gold reserves were built intentionally as a strategic buffer, not by chance.
She worked as a consultant for President Ali Hassan Mwinyi and remembers that gold was collected to help the economy become more open and protect the country from shocks from outside. That strategy was later reinforced under President Benjamin Mkapa, when Tanzania was pursuing debt reduction and broad economic reform.
She says that selling gold is a big responsibility because of its history. She says that any sale of reserves must be linked to projects that clearly lead to more economic growth.
She often uses the long-promised Standard Gauge Railway as an example of an investment that could make using gold reserves worth it if it is done well, openly, and in line with demand.
A functioning railway connecting ports, industrial zones, and regional markets could significantly lower transport costs and support trade across East and Central Africa.
Professor Anna Tibaijuka has asked if Tanzania can get anything out of its massive infrastructure spending.
She has pointed to audit reports and cost-benefit assessments that demonstrate that specific projects have been expensive but have not brought in much money. She says that poor execution, not a lack of ambition, has often hurt development outcomes.
People often point to Chato Airport, which was built under former President John Magufuli, as a warning sign. Even though it is politically important, transport economists and parliamentary committees have discovered that the airport does not get much traffic and does not do much for the economy. This makes people even more worried about projects that are based on politics instead of demand.
The government does not agree with these criticisms. The Ministry of Finance says that infrastructure projects now have to go through stricter appraisal systems and be watched by Parliament. On the other hand, the Bank of Tanzania says that any gold sales will be carefully managed to keep the reserves stable. Ongoing gold purchases in Tanzania support this.
