Tanzania Finance Minister Mwigulu Nchemba‘s 2025-26 budget speech has introduced a new directive requiring large-scale gold miners to refine and sell at least 20% of their production within the country, a move aimed at strengthening domestic value addition and boosting the country’s foreign reserves.

The mandate is expected to impact major mining operators such as Barrick Gold Corporation, through its joint venture Twiga Minerals, and AngloGold Ashanti, both of which have significant gold mining operations in Tanzania.

This policy shift aligns with the government’s broader efforts to increase the mining sector’s contribution to the economy, with the sector’s share of GDP rising from 6.8% in 2020 to 9.5% in 2024. Annual growth in the industry also climbed to 8.3% in 2024, up from 7.3% in 2020.

“This measure is part of our ongoing reforms to ensure Tanzanians benefit more from the country’s mineral wealth,” Nchemba’s stated, highlighting improvements in regulatory frameworks, infrastructure, and oversight.

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By mandating local refining and trading, the government seeks to boost local beneficiation, support industrial growth, and curb the export of unrefined gold. The Bank of Tanzania has already begun building national gold reserves, purchasing 4.8 tonnes of refined gold by May 2025—a signal of growing domestic capacity.

Since 2020, Tanzania has implemented sweeping reforms in the mining sector that are already delivering results. Non-tax revenue collection has increased significantly, rising from TZS 587.3 billion in 2020/21 to TZS 875.6 billion between July 2024 and April 2025. The government has also strengthened control over mineral smuggling, revived gemstone auctions, and attracted expanded investment across the industry. Additionally, the procurement of 10 drilling rigs to support artisanal and small-scale miners marks a major step toward inclusive growth and improved productivity at the grassroots level.

The Nchemba also mentioned that these reforms are designed to attract responsible investment while ensuring that Tanzanians derive more economic value from their natural resources.