Latest news with #MwiguluNchemba
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.
Zawya
21-04-2025
- Business
- Zawya
Tanzania: IMF concludes $440mln loan talks with Dodoma
The International Monetary Fund (IMF) has reached a staff-level agreement with Tanzania for a new $440.8 million loan, which will be disbursed following approval by the Fund's executive board. The fresh funding will bring the Bretton Woods lender's total financial support to Tanzania under its Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) programmes to more than $1.25 billion, comprising $907.4 million under ECF and $343.6 million under RSF. According to an IMF statement, during its two-week visit to the country, which ended on Thursday (April 17), the staff mission held discussions with Tanzanian officials, including Finance Minister Mwigulu Nchemba and central bank governor Emmanuel Tutuba, on 'the policies needed to complete the (latest) reviews' of existing ECF and RSF arrangements between the Fund and the government.'The IMF's Executive Board will discuss these reviews in the coming weeks,' team leader Nicolas Blancher said. He expressed satisfaction with Tanzania's macroeconomic activities such as real GDP growth reaching 5.5 percent in 2024 and projected to increase to six percent in 2025, and inflation remaining subdued at 3.3 percent year-on-year by March. However, he also warned of downside economic risks due to an uncertain external environment defined by 'a slowdown in the global economy and trade, geo-economic fragmentation, further intensification of the conflict in the DR Congo and reduced foreign development assistance.''On the domestic front, the upcoming national elections may increase risks of fiscal pressures or, more broadly, reform slowdown,' Mr Blancher added. On policy requirements, the IMF urged the Bank of Tanzania to continue to allow exchange rate flexibility and conduct regular interventions for a stable forex market.'Increased tolerance for exchange rate flexibility, together with reforms to improve the functioning of the foreign exchange market, have been successful in bringing back foreign exchange flows into the formal market, increasing its liquidity and reducing the parallel market premium,' Mr Blancher noted.'With inflation remaining below the BoT's five percent target, maintaining the central bank rate (CBR) at six percent - a level which the mission considers to be neutral or mildly stimulatory - will help preserve price stability in the period ahead,' he added. Read: Tanzania keeps lending rate at 6pc for fourth quarter in a rowIn the longer term, the team said the government should ensure that sufficient resources are allocated to the education and health sectors in particular, and create an enabling environment for private sector-led growth and job creation.'In particular, further efforts to improve availability and access to finance, streamline business regulations, and strengthen judicial and anti-corruption institutions are key structural reform priorities,' Mr Blancher said. He also called on Tanzania to continue implementing climate adaptation and mitigation policies through RSF support with the aim of building stronger resilience to climate-related risks.'The government has already started to strengthen the institutional framework for climate policies and public investment management in line with climate risks. Accelerating implementation of RSF reforms with technical and financial assistance from the IMF, the World Bank, and other development partners will help in further catalysing support for the climate agenda in Tanzania,' Mr Blancher said.
Reuters
13-03-2025
- Business
- Reuters
Tanzania plans to raise spending by 13% in fiscal year from July, draft shows
DAR ES SALAAM, March 13 (Reuters) - Tanzania plans to increase overall spending by 13.4% in the fiscal year from July, according to a draft budget that focuses on the country's debt repayment needs, the cost of a coming general election, and U.S. President Donald Trump's pause in overseas aid. The east African country plans to spend 57.04 trillion shillings ($22 billion) in the 12 months starting in July, up from 50.29 trillion shillings this year, according to a budget paper seen by Reuters. Finance Minister Mwigulu Nchemba presented a paper titled "Budget Framework and Expenditure Ceiling For 2025/26" to a parliamentary committee on Tuesday. The final budget for the coming fiscal year will be read in June. Of the total amount, the government expects to raise 40.97 trillion shillings from domestic revenue sources and the rest through both domestic and external debt, according to the paper. Tanzania is taking steps to reduce its dependence on unpredictable sources of revenue or debt with unfavourable terms, the paper showed. Like some other developing countries Tanzania has also been hit hard by U.S. President Donald Trump's freeze on all foreign aid for 90 days. The budget has taken into consideration, the paper said, "the potential impact that is likely to happen due to changes of policies from development partners, especially the United States." In the next financial year the government will focus on boosting production of manufactured goods and services, and the promotion of trade and investment among other factors, the paper said. "Specific priorities include covering costs on government debt repayment, salaries, the general election of 2025 and promotion of democracy in the country," Nchemba said in the paper. Tanzania is set to hold a general election in October in which voters will choose the next president, lawmakers and local government officials. President Samia Suluhu Hassan will be seeking re-election for a second term of five years, having come to power in 2021 after the death of her predecessor. ($1 = 2,610.0000 Tanzanian shillings)
Reuters
30-01-2025
- Business
- Reuters
Tanzania, Burundi sign deal with China to build nickel-carrying railway
DAR ES SALAAM, Tanzania, Jan 30 (Reuters) - Tanzania and Burundi have signed an agreement with two Chinese firms to build a railway between the two African countries for transporting metals, including battery mineral nickel, to the port city of Dar es Salaam. The $2.15 billion joint venture will be constructed by China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group, Tanzania's transport minister Makame Mbarawa said during the signing ceremony on Wednesday. It will be financed by the African Development Bank (AfDB), Tanzania's finance minister Mwigulu Nchemba said. The two nations expect the 282 kilometre (175 mile) standard gauge line to transport three million metric tons of minerals annually, Tanzania's finance ministry said last year. In the last decade China has funded infrastructure projects, such as railways, power plants and ports, and across Africa through its Belt and Road Initiative.
