Tanzania is asserting greater control over its gold reserves with a new policy mandating that large-scale miners process and trade at least 20 percent of their output within the country. The move places the East African nation at the forefront of a continent-wide shift toward resource nationalism.
Finance Minister Mwigulu Nchemba announced the policy during the 2025–26 budget presentation, stating that mining firms must ‘allocate gold at a rate of not less than 20% of production for smelting, refining, and trading in the country’. Major mining giants such as AngloGold Ashanti Plc and Barrick Gold Corporation will be directly affected by the regulation, which must be implemented within the next 30 days.
The Bank of Tanzania (BoT) is also set to receive a share of the refined gold, in a bid to strengthen sovereign reserves. The timing of this move is significant, as global gold prices continue to surge amid market volatility, and supply chains remain disrupted due to geopolitical tensions.
This latest rule builds on a September 2024 gold bill and marks a deeper pivot toward domestic value addition and control over natural resource flows. The government hopes the regulation will reduce dependency on foreign buyers, increase employment in the refining sector, and retain more revenue within the local economy.
Burkina Faso expands state control over mines
Tanzania’s push mirrors similar moves across the continent. In Burkina Faso, the government formally transferred five major gold mining holdings in June 2025 to its state-owned firm, SOPAMIB (Société de Participation Minière du Burkina).
The move followed a decree issued by military leader Ibrahim Traoré in August 2023 and signals the country’s intent to consolidate state control over strategic extractive assets. Burkina Faso, now Africa’s fourth-largest gold producer after Ghana, South Africa, and Sudan, has long depended on gold as its economic backbone—accounting for over 70 percent of export earnings.
The West African nation is also deepening ties with Russia, having recently inked a deal to develop local gold refining infrastructure. The aim is to curb export losses and capture more value from one of its most vital resources.
Rise of resource nationalism in Africa
These developments underscore a growing trend across Africa: the reassertion of national control over mineral wealth. For decades, multinational firms have dominated African gold production, often exporting raw material with limited benefit to host countries.
Now, governments are rewriting the rules. By requiring local refining and expanding state participation, African nations like Tanzania and Burkina Faso hope to transform their role in the global gold trade—from suppliers of raw ore to stakeholders in finished value.
While critics warn of the challenges such policies may pose for investor confidence and infrastructure readiness, supporters argue the long-term payoff will be greater economic autonomy, job creation, and industrial growth.
What is certain is that a new gold paradigm is emerging—one where Africa’s mineral-rich nations are no longer content with being passive exporters. They are claiming their stake, on their terms.
Credit: Africabriefing
