Tanzania and Burkina Faso Lead Africa’s Push for Gold Sovereignty
Tanzania is intensifying efforts to reclaim control over its gold reserves by mandating that large-scale mining companies process and trade at least 20% of their production domestically.
This bold move positions the East African nation among a growing number of African countries seeking to extract more value from natural resources and assert greater sovereignty over their mining sectors.
The policy, which aligns with a similar gold legislation enacted in September 2024, is part of a broader shift toward resource nationalism.
With global gold prices surging, governments are increasingly focused on maximizing the economic benefits of their mineral wealth.
Under the new rule issued by Tanzania’s mining regulator, companies exporting gold must now allocate at least 20% of their output to the Central Bank of Tanzania (BoT).
The timing is strategic, given current volatility in the global gold market and the sharp rise in commodity prices. The government plans to finalize implementation of the policy within 30 days.
Major international mining companies such as AngloGold Ashanti Plc and Barrick Gold Corporation—the world’s second-largest gold producer—are directly affected by this policy, according to Bloomberg.
Finance Minister Mwigulu Nchemba confirmed during his 2025–26 budget speech that companies with government agreements must “allocate gold at a rate of not less than 20% of production for smelting, refining, and trading within the country.”
Similarly, Burkina Faso is making strides to reclaim full control of its gold mining sector. Nearly a year after launching a formal procedure in August 2023, the country’s transitional leader, Captain Ibrahim Traoré, issued a decree transferring control of key mining operations to the state.
This handover marks a decisive step toward full governmental oversight and management of the nation’s primary extractive industries.
These developments highlight a growing trend across Africa, where countries are asserting greater ownership and insisting on domestic value addition within their mining sectors.
For decades, multinational firms have dominated African gold production, often exporting raw materials with minimal benefit to local economies.
Burkina Faso, now ranked fourth in Africa in terms of gold production—after Ghana, South Africa, and Sudan—has seen a dramatic rise in output over the past 20 years.
Gold has become the country’s most valuable export, accounting for over 70% of its export earnings and forming a crucial pillar of its economy.
Together, Tanzania and Burkina Faso exemplify a continental push to rebalance power in the mining sector—one that prioritizes national development, economic sovereignty, and long-term sustainability.
