Tanzania Plans Partial Sale of Gold Reserves as Foreign Aid Declines in 2026
Tanzania is planning to sell a portion of its gold reserves to finance priority infrastructure projects, as international development assistance continues to decline.
The announcement was made on Monday, January 26, 2026, in London by the Minister of State for Planning and Investment, Kitila Mkumbo, following instructions from President Samia Suluhu Hassan to the Bank of Tanzania.
“Governments are no longer willing to provide aid to Africa, so we are reorganising our financing strategy,” the minister said, underscoring the shift toward greater reliance on domestic resources.
The Bank of Tanzania has been mandated to carry out a partial sale of the country’s gold reserves, although authorities have not yet disclosed the volumes to be sold or the timeline for the transaction. As of the end of December 2025, Tanzania’s gold reserves were valued at approximately $1.3 billion.
The move comes amid a broader reduction in development aid from several Western countries, many of which are redirecting public spending toward domestic priorities such as defence and security.
Tanzania is also experiencing strained relations with the European Union, which has indicated it may suspend a €156 million aid programme following the disputed presidential election in October 2025.
As one of Africa’s major gold producers, with output estimated at around 52 tonnes in 2023, Tanzania relies heavily on the metal for export earnings.
Gold accounts for about 22.5% of the country’s total exports, while the mining sector as a whole contributes nearly 10% of GDP and roughly 15% of tax revenues.
Against this backdrop, gold has become a strategic financial lever for the government, offering a means to offset declining external financing while sustaining investment in critical infrastructure and economic development.
