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Business Insider
2 days ago
- Business
- Business Insider
Tanzania joins the list of African countries looking to take control of their gold resource
Tanzania is stepping up efforts to restore sovereignty over its gold reserves by requiring large-scale miners to process and trade at least 20% of their product locally. Tanzania plans to enhance sovereignty over gold reserves by enforcing local processing and trade requirements. This mirrors a trend in Africa toward resource nationalism, leveraging control over natural resources. Burkina Faso has transferred five gold mining holdings to its state-owned mining corporation, SOPAMIB. Both countries aim to secure economic benefits amid rising gold prices globally. The decision places the East African country among a rising number of African nations seeking to extract more value from their natural resources and gain more control over their mining sectors. The policy, which mirrors another gold bill implemented in September 2024, represents a larger move toward resource nationalism, as governments seek to benefit more directly from rising global gold prices. Tanzania's mining regulator issued a rule requiring mining firms that export gold to donate at least 20% of the commodity to the Central Bank of Tanzania (BoT). Given the complications in the global gold trade that have caused the commodity price to soar dramatically, Tanzania's push to finalize its 20% gold refining policy in the next 30 days couldn't have come at a better time. Mining behemoths like AngloGold Ashanti Plc and Barrick Gold Corporation, the second-largest producer of gold in the world are direct targets of this policy, as per Bloomberg. Companies that have contracts with the government will be required 'to allocate gold at a rate of not less than 20% of production for smelting, refining, and trading in the country,' said Finance Minister Mwigulu Nchemba in his 2025-26 budget speech on Thursday. Similarly, Burkina Faso's push to gain control of its gold mines couldn't have come at a better time. Burkina Faso's gold push under Ibrahim Traoré In June 2025, Burkina Faso formally handed over five gold mining holdings to its state-owned mining corporation, SOPAMIB (Société de Participation Minière du Burkina). This followed a decree by the country's junta leader Ibrahim Traoré, who issued it nearly a year after the procedure began in August 2023. The handover represents a significant move toward complete governmental management and operation of the country's major mining industries. These developments reflect an increasing regional trend in Africa, where governments are advocating for more ownership, value addition, and control over extractive sectors. For years, multinational mining firms have dominated African gold production, exporting raw materials and producing little local value. Burkina Faso's status as a gold producer has grown significantly over the past two decades, making it one of Africa's leading gold-producing countries.
The Star
03-05-2025
- Business
- The Star
Tanzania's central bank bans use of foreign currency for local transactions
DAR ES SALAAM, May 3 (Xinhua) -- Tanzania's central bank said in a statement late Friday that it has prohibited the use of foreign currency for local transactions and payments. The Bank of Tanzania (BoT) said under regulations issued by the government in 2025, pricing and payment for all goods and services within the country must be made in Tanzanian shillings. The statement, signed by BoT Governor Emmanuel Tutuba, said the regulations also specify transactions that are permitted to be conducted in foreign currency. It said foreigners, including tourists, are required to exchange foreign currency at commercial banks or exchange bureaus in Tanzania. They can still pay with bank cards or other digital methods. The BoT also urged the public to report any violation of these regulations to the central bank through the Financial Intelligence Unit, the police, or any other law enforcement authority for appropriate action.
Mint
22-04-2025
- Automotive
- Mint
InvITs becoming prime vehicle for forging M&A activity in roads and highways
New Delhi: Developers are increasingly turning to InvITs for selling their assets while unlocking capital for new toll projects as the public sector highway agency NHAI pushes for award of BoT (toll) projects. According to an EY estimate, AUM (asset under management) of road InvITs are projected to grow by 68%, reaching ₹ 3.2 trillion by end of FY26, compared with ₹ 1.9 trillion in September 2024. Existing InvITs have an acquisition pipeline of ₹ 55,000-60,000 crore by FY26, with an additional ₹ 50,000-55,000 crore expected from asset monetization by NHAI and road developers. With the rising uptake of these investment trusts or InvITs, the sector has become a focal point for private investment and asset monetization. 'InvITs play a key role in attracting investment as these trusts as an asset class provide for a diversified portfolio of cash yielding assets which reduces risks pertaining to revenue realization, liquidity, debt defaults and force majeure. Also, InvITs are especially attractive to investors due to the direct distribution mechanism via dividends, interest payments and capital reduction. Further, InvITs are also tax efficient structures as on-lending from the InvIT to underlying SPVs (special purpose vehicle) removes cash traps and provides tax advantage, while cash flows at the InvIT level are tax exempt," said Srishti Ahuja, investment banking partner (infrastructure), EY India. Also read | Sebi plans raising MF exposure limit in REITs, InvITs; experts flag tax concerns 'Additionally, being governed by Sebi (Securities and Exchange Board of India), these trusts become an attractive asset class for medium to long-term investors due to the transparency and ethical practices ensured by Sebi and easier entry and exit clauses for InvITs introduced by it," she added. M&A activity in roads and highways has seen a very active phase of growth over the last decade. Between 2014 and 2024 (till October), the Indian road sector witnessed over 100 asset sales, with a cumulative deal value exceeding ₹ 1.7 trillion underscoring investor confidence in Indian road assets and the high-yield investment opportunities the sector has provided. 'M&A activity has remained buoyant in the past 24 months; a total of ₹ 41,000 crore worth of road assets changed hands in the past 24 months with asset mix comprising toll, HAM (hybrid annuity model) and annuity projects. A total of 53 assets were sold in the past 24 months with InvITs continuing to lead the M&A activity . The strong performance shown by the toll assets post-covid and a healthy pipeline of HAM projects is expected to support the M&A activity in the near term. As seen in the past, InvITs are expected to lead the M&A activity in the road sector," said Vinay Kumar G., sector head, corporate ratings, ICRA. InvITs are able to attract the patient capital required for asset acquisition and raise debt at competitive rates helping them to lead in M&A activity in the road sector. The key investors for the road InvITs are marquee pension funds like CPPIB, CDPQ, OMERS, sovereign wealth funds like ADIA, PIF, GIC and reputed investors like BCI, Mubadala, AIIB, IFC etc. Given the better access to capital and acceptance of InvIT as an instrument in the Indian market , they are expected to play a crucial role in meeting the financing gap in the national infrastructure pipeline and M&A activity. In the past 24 months, some of the major M&A deals include Highway Infrastructure Trust taking over a HAM project from HG Infra for ₹ 1,394 crore. The trust also took over two other HAM and toll projects from earlier sponsors PNC Infratech and Macquarie for ₹ 9,000 crore and ₹ 3,000 crore respectively. Similarly, Shrem InvIT took over a HAM project from Apco Infratech for ₹ 3,867 crore while Indian Highways Concession Trust took over a toll project for ₹ 5,718 crore from Ashoka Concessions Ltd. 'In light of this shifting of government's focus from HAM to BOT (build, operate, transfer for toll roads), developers will need to increase participation in construction of toll roads, for which they will need higher amounts of liquidity (as against constructing HAM roads where 40% of the development cost is borne by NHAI /Concessioning Authority upfront). Here, InvITs can allow developers to deleverage and release locked-in capital while also making a positive return on investment," Ahuja said. Sovereign wealth and pension funds have increasingly utilized the InvIT route to invest in road infrastructure. In Sep 2024, OMERS acquired a 13.48% stake in Interise InvIT from Allianz Capital. Meanwhile, Larsen & Toubro 's pension funds and institutional investors acquired an 8.03% stake in Cube Highways Trust for ₹ 1,243 crore. Among other recent deals in the road sector, IRB Infrastructure Trust submitted a non-binding offer to IRB InvIT to sell its five toll road assets valued at ₹ 15,000 crore in Nov 2024. Montecarlo Ltd disclosed plans to divest nine HAM assets valued at ₹ 3,025 crore in Oct 2024. ALos read | Mint Explainer: What Sebi's proposals for REITs, InvITs mean for investors In Sep 2024, the Highway Infrastructure Trust acquired TOT-16 for ₹ 6,661 crore, while Bharat Highways InvIT acquired GR Aligarh Kanpur Highway Private Ltd for ₹ 98,000 crore. In Oct 2024, Actis expanded its portfolio by acquiring the Vindhyachal Expressway for ₹ 775 crore. Prior to this in Feb 2024, Actis had acquired four HAM assets from Patel Infrastructure for ₹ 1,500 crore, including two under-construction projects.
Zawya
24-02-2025
- Business
- Zawya
Tanzania: Miners ordered to sell 20% of their gold to the central bank
Tanzania's mining regulator has ordered all gold mining firms and traders to sell at least 20% of their gold to the country's cen- tral bank. This directive, part of a broader strategy to diversify the Bank of Tanzania's (BoT) foreign exchange re- serves, took effect in October, following the enactment of new mining regulations. The central bank's gold-buying pro- gramme began last year, driven by pres- sures on the Tanzanian shilling. In the 12 months leading up to June 2024, the BoT purchased 418kg of gold. The bank's goal for the current financial year is sig- nificantly more ambitious, with plans to acquire six metric tons of gold as part of its efforts to bolster reserves. The Tanzania Mining Commission re- quires miners and traders to sell their reserved gold to two major mineral re- fineries: Eye of Africa Ltd, located in the capital city of Dodoma, and Mwanza Pre- cious Metals Refinery Ltd, in the northern city of Mwanza. The initiative comes as Tanzania's for- eign exchange reserves stand at $5.29bn, which is sufficient to cover 4.3 months of imports of goods and services. By in- creasing its gold reserves, Tanzania is seeking to stabilise its currency, which has depreciated by nearly 8% against the US dollar this year. Tanzania is one of Africa's largest gold producers, with major players in the sec- tor including AngloGold Ashanti Plc and Barrick Gold Corp. The country's gold sector has historically been a critical con- tributor to its economy, with gold exports generating significant foreign exchange earnings. Tanzania is also strengthening its mining sector. In recent years, the gov- ernment has introduced several reforms aimed at increasing the sector's contri- bution to the national economy, includ- ing revising mining laws and enhancing oversight of mineral exports. Equity market grows by 22% From January to September, the Tanza- nian stock market's total capitalisation increased significantly, climbing from $5.86bn in January to $7.13bn in Septem- ber – a remarkable 22% jump. This surge is a reflection of improved investor confidence, driven by stable macroeconomic conditions and strong performances in key industries such as banking and beverages. The domestic market capitalisation also grew by 7% during this period, reaching $4.89bn by September. Activity in the bond market was ro- bust as well, with the value of outstand- ing government bonds rising by 18.5%, from $8.12bn in January to $9.62bn in September. Notably, however, the market for sus- tainable bonds saw no change, with the value remaining at $184.03m – making it an area that may present opportunities for growth in the near future. Several companies posted notable price movements over the first nine months of 2024, with particularly strong gains in banking, beverages, and insurance. CRDB Bank, one of Tanzania's largest finan- cial institutions, saw its stock price rise by 39.13%, climbing from $0.18 to $0.25. East African Breweries Limited, a cross- listed company, experienced even more impressive growth, with its stock price soaring by 82.97%, from $0.73 to $1.34. In the insurance sector, Jubilee Hold- ings Limited (JHL) saw its share price increase by 22.64%, from $1.18 to $1.45, reflecting positive investor sentiment toward the financial services industry. Meanwhile, KCB Bank, another cross- listed entity, emerged as one of the top performers, with its share price more than doubling, up by 108.57% from $0.14 to $0.29. Domestic companies like NICO also experienced significant gains, with its share price rising by 50%, from $0.20 to $0.30. However, not all companies fared well during this period. Swissport Tanzania (SWISS) saw its stock price decline by 16.67%, from $0.53 to $0.44, possibly due to increased competition within the avia- tion sector. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
