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Tanzania orders gold dealers to reserve 20% for central bank

Published

6 hours ago

September 29, 2024

Tanzania’s mining regulator has ordered all gold exporters to sell at least 20% of the metal to the central bank to diversify its foreign reserves.

The Central Bank of Tanzania (BoT) started buying gold from local dealers and miners in the past financial year that ended in June to strengthen its reserves amid shilling depreciation.

The central bank increased its gold reserves by 418 kg in the year to June and plans to purchase 6 metric tonnes in the current financial year.

The Tanzania Mining Commission announced late Friday that the instruction will take effect on Oct. 1 as part of a new mining law.

The statement states that miners and traders will have to provide the reserved gold to two significant mineral refineries: Mwanza Precious Metals Refinery Ltd., which is situated in the northern East African city of Mwanza, and Eye of Africa Ltd., which is located in the capital Dodoma.

“All payments will be done according to the Bank of Tanzania arrangements,” the statement said, without providing details on rates.

At the end of July, Tanzania had $5.29 billion in foreign exchange reserves, which was enough to fund 4.3 months’ worth of anticipated imports of goods and services.

Source: https://www.reuters.com/world/africa/tanzania-orders-gold-dealers-reserve-20-purchase-by-cbank-2024-09-28/Tanzania orders gold dealers to reserve 20% for sale to its central bank

Tanzania’s mining regulator has ordered all gold exporters to sell at least 20% of the metal to the central bank to diversify its foreign reserves.

The Central Bank of Tanzania (BoT) started buying gold from local dealers and miners in the past financial year that ended in June to strengthen its reserves amid shilling depreciation.

The central bank increased its gold reserves by 418 kg in the year to June and plans to purchase 6 metric tonnes in the current financial year.

The Tanzania Mining Commission announced late Friday that the instruction will take effect on Oct. 1 as part of a new mining law.

“All payments will be done according to the Bank of Tanzania arrangements,” the statement said, without providing details on rates.

At the end of July, Tanzania had $5.29 billion in foreign exchange reserves, which was enough to fund 4.3 months’ worth of anticipated imports of goods and services.

Related Topics:central bank Featured Tanzania

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Four Barrick Gold employees arrested by Mali junta

Published

3 hours ago

September 29, 2024

Ifeoluwa Dada

Mali’s military-led authorities have arrested four staff of the world’s second-largest gold miner, according to sources cited by Reuters.

The four Barrick employees were arrested for financial violations, according to a regional government official who requested anonymity. Barrick said nothing. Malian authorities were unavailable for comment.

Barrick is under pressure in the West African country since a junta took power in 2020.

Mali is a major gold producer, and the junta aims to raise state revenue by implementing a new mining policy that grants the government ownership of gold concessions.

One of the largest producers of gold in Africa is Mali, and the junta has worked to direct more gold earnings into state coffers, notably by enacting a new mining rule that permits the government to acquire a larger stake in gold concessions.

The authorities’ decision to sever long-standing connections with Western allies like France and pursue tighter diplomatic, security, and commercial ties with Russia is part of a larger policy shift that includes this sector’s upheaval.

Mali struck agreements with Russia last year to develop a gold refinery in the nation’s capital, Bamako, and with Rosatom, the Russian state nuclear energy firm, to conduct mineral exploration and nuclear energy production.

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Zambia eyes recovery following worst drought

Published

1 day ago

September 28, 2024

Ifeoluwa Dada

As it emerges from its worst drought in living memory, Zambia hopes to achieve a fast recovery in economic growth and a halving of its budget deficit in the following year, the country’s finance minister announced on Friday.

In contrast to a projected 2.3% growth in 2024, the copper producer aims for 6.6% growth in 2025, according to Finance Minister, Situmbeko Musokotwane, in a budget speech.

The El Nino-caused drought destroyed Southern Africa’s crops, resulting in food shortages and harming the region’s economic prospects this year.

Zambia’s finance minister said on Friday that the nation, which is coming out of the worst drought in living memory, intends to quickly recover economic growth and cut its budget deficit in half the next year.

Finance Minister Situmbeko Musokotwane stated in a budget address that the copper producer is targeting 6.6% growth in 2025 as opposed to a projected 2.3% increase in 2024.

A UNICEF study in March 2024 states that the majority of the country’s central and southern regions have been impacted by the dry spell since mid-January. These regions have gotten less rainfall than usual, which has resulted in the destruction of one million hectares of maize—nearly half of all the corn grown in the nation.

Since hydropower generates more than 80% of Zambia’s electricity, the analysis also predicted that the drought would cause a power shortage of 430 megawatts and have an impact on surface and groundwater levels. These projections would have serious ramifications for industries other than agriculture.

The minister further stated that following the conclusion of a Eurobond restructuring exercise, Zambia was still negotiating restructuring arrangements with certain commercial creditors.

He reported that the China Development Bank and the Industrial and Commercial Bank of China have just struck provisional restructuring agreements with Zambia.

It has been demonstrated that the agreements are in line with Zambia’s IMF program and the “Comparability of Treatment principle,” which aims to prevent the wealthier creditor nations that make up the Paris Club from making disproportionate concessions in comparison to other creditors.

The lengthy debt restructuring process in Zambia has hurt local financial markets and discouraged investment.