Mining & Minerals

Sell Gold to Bank of Tanzania: The 20% Rule, Price and Royalty

Cover: selling gold to the Bank of Tanzania under the 20 percent set-aside, with royalty and refining terms
The domestic gold purchase programme: who must set gold aside, how the Bank prices and pays, and what royalty applies.
Direct answer

Who must sell gold to Bank of Tanzania, and on what terms? Mineral right holders and licensed dealers on the Mainland must set aside at least 20 percent of their gold for domestic trading, and the Bank has first call on it. The Bank pays in shillings at the world price within 24 hours of an approved refinery's assay and covers refining. The seller pays 4 percent royalty, no inspection fee and zero-rated VAT.

Since 1 October 2024, every miner and dealer who wants to export gold from Tanzania Mainland has had to sell gold to Bank of Tanzania first, or at least offer it. The rule comes from the Mining Act as rewritten by the Finance Act 2024. The Bank runs the purchases through its Domestic Gold Purchase Programme.

This guide covers the obligation, the price and payment terms, the refinery step, the royalty concession and the export permit link. It is written for mining licence holders, licensed gold dealers and refineries. Our earlier guide to mineral markets and how gold is sold covers the trading floor; this one follows the gold from the set-aside to the Bank's payment.

What the law says

The governing statute is the Mining Act, Cap. 123, which applies to Tanzania Mainland only. The text most widely available online is the TanzLII consolidation of the Mining Act to 30 November 2019. In that text, section 59 already allowed the Minister to require a mineral right holder to set aside a percentage of minerals for processing, smelting or refining in Tanzania. No fixed percentage was written into the Act.

That changed on 1 July 2024. Section 57 of the Finance Act 2024, Act No. 6 of 2024, replaced section 59. The new section requires a mineral right holder or licensed dealer to set aside an amount of gold for processing, smelting, refining and trading in Tanzania. The Minister fixes the amount by regulation. A proviso says the amount "shall not be less than twenty percent of the gold".

The same Part of the Finance Act 2024 made four linked changes:

The Act also added section 55C to the VAT Act, Cap. 148, zero-rating gold supplied to the Bank. It was assented to on 30 June 2024 and took effect on 1 July 2024.

The Minister's regulations followed on the same dates. Law firm summaries by FB Attorneys and VELMA Law describe them as the Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2024, issued on 30 June 2024 and in force from 1 July 2024. They require authorised miners and licensed dealers to "set aside not less than 20% of won or obtained gold". The Zatra fee register records the instrument as GN 539C of 2024, regulations 3(6) to 3(10). We could not open the Gazette copy, so confirm the GN number before citing it in a filing.

What changed in 2024 and 2025?

The rule has been built in three steps, and one of them catches companies that thought they were exempt.

StepInstrumentEffect
Statutory floorFinance Act 2024, s.57 (new Mining Act s.59)Gold set-aside of not less than 20 percent for holders and dealers, except those with a contrary Government agreement
Detailed rulesMining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 202420 percent set-aside, Bank pre-emption, no export permit without the set-aside
Bank programmeBank of Tanzania public notice, 1 October 2024Price, payment within 24 hours, refining paid by the Bank, fiscal incentives
Agreement carve-out removedFinance Act 2025, Act No. 11 of 2025, s.77From 1 July 2025 the set-aside applies to holders with Government agreements too

The fourth row matters for large miners. The 2024 text excluded holders "having agreement with the Government that provides to the contrary". Section 77 of the Finance Act 2025 deletes those words from section 69 of the Mining Act. Section 69 is the set-aside provision's number in the Revised Edition 2023, which renumbered the Act. The Act was assented to on 30 June 2025 and took effect on 1 July 2025.

The Government signed purchase agreements with large producers two weeks before that date. TanzaniaInvest reported on 19 June 2025 that the Bank signed agreements in Dodoma on 16 June 2025 with Geita Gold Mining, Shanta Gold Mining Company, Buckreef Gold Company and Geita Gold Refinery. Each covered 20 percent of the producer's annual output.

Who is affected?

The set-aside reaches everyone who wins or buys gold on the Mainland and wants to move it out of the country. In practice there are four groups.

WhoWhat the rule means for themRelated guide
Holders of a mining licence or special mining licenceSet aside at least 20 percent of gold won; sell it to the Bank or, if released, to a local refinery, smelter or jewellerMining licence transfers
Licensed gold dealers and exportersSet aside at least 20 percent of gold obtained before an export permit will issueMineral dealer licence
Primary mining licence holdersCovered as mineral right holders; most sell through mineral markets, so the dealer who buys from them carries the set-aside on exportPrimary mining licence
RefineriesNot named in section 59 as such, but they refine the set-aside gold, and refineries with a Bank agreement may sell to the BankSmelter and refinery licence

Reuters, in a report carried by MINING.COM on 28 September 2024, described the Commission's order as applying to "all mining firms and traders exporting gold". The friction arises at the export permit.

How much gold must you sell to the Bank of Tanzania?

The legal floor is 20 percent of the gold won or obtained. The Act lets the Minister set a higher figure by regulation, and the regulations as reported say "not less than" 20 percent. No higher percentage has been published that we could find.

Three points of detail shape the calculation:

Twenty percent is a minimum, not a cap. The Bank's notice says any mineral right holder, licensed dealer or refinery with an agreement with the Bank may sell any amount. Many sellers sell more than the set-aside because the fiscal terms are better than the export route. The Mining Commission told Parliament's energy and minerals committee on 11 August 2026 that five domestic refineries sold 28,701 kg in 2025/26 and the Bank bought 21,710 kg of it. That is 75.64 percent, according to TanzaniaInvest on 13 August 2026.

How is the price set and when are you paid?

The Bank of Tanzania public notice of 1 October 2024 sets the commercial terms. It says sellers receive "competitive World Market Prices", which change daily and are published by the Mining Commission. The notice printed a worked price for that day.

Item, per gram, 1 October 2024Amount (TZS)
Price before deductions232,876.89
Royalty at 4%9,315.08
Inspection fee at 0%0.00
Net to the seller223,561.81

Those are the Bank's own figures for 1 October 2024. They are not today's price. Always take the day's price from the Mining Commission before you deliver.

The Bank pays 100 percent of the price after it receives the approved refinery's fire assay report. Payment is made within 24 hours of confirmation of that report. The price is quoted in shillings, and the programme was designed to build reserves using local currency. A Bank of Tanzania presentation in Cape Town on 26 February 2025 gives the pricing reference as the LBMA price on the date the gold is received.

Two consequences follow. The seller carries the price risk until delivery. And the cash arrives in shillings, so a dealer who owes dollars must convert at its bank's rate on the day.

Which refineries can you use, and does LBMA matter?

Set-aside gold goes to an approved refinery for fire assay before the Bank pays. The Bank covers all refining costs for gold it buys. When the programme opened, the Commission named two refineries for delivery: Eye of Africa Ltd in Dodoma and Mwanza Precious Metals Refinery Ltd in Mwanza, according to the Reuters report. Geita Gold Refinery signed an agreement with the Bank in June 2025. TanzaniaInvest's August 2026 report refers to three Bank-designated refineries. Confirm the current list with the Commission before you move gold.

The London Bullion Market Association (LBMA) sets the Good Delivery standard that central banks use for reserve bars. The Bank's February 2025 presentation listed three purchasing options:

The same presentation named the lack of domestic LBMA-accredited refineries as a challenge. A Daily News opinion piece of 27 October 2026 said eight refineries were operating, with none accredited. It named South Africa's Rand Refinery as the only LBMA-certified gold refinery on the continent.

For a seller, LBMA status is the Bank's concern. You need a refinery the Bank accepts for the assay that triggers payment. A refiner that wants Bank business needs its licence, assay capacity and an agreement with the Bank. Our refinery licence guide sets out the licence. The register prints the application fee as TZS 150,000, or USD 200, with an annual fee of half the issue fee (F0631).

What royalty and inspection fee apply on gold sold to the BoT?

Gold sold to the Bank carries a lower charge than gold exported. The Bank's notice, the Finance Act 2024 and the Zatra fee register agree on the core figures.

ChargeGold sold to the BankGold exported or sold elsewhereRegister and basis
Royalty on gross value4%6% (metallic minerals including gold)F0624, F0627; Mining Act s.111(1), formerly s.87, as amended by Finance Act 2024 s.59
Inspection fee0%1% of gross valueF0625, F0627; Mining Act s.115, formerly s.90A, as amended by Finance Act 2024 s.61
VATZero-rated, so input tax can be claimedExports zero-rated; other domestic supplies follow the VAT ActF0627; VAT Act s.55C, added by Finance Act 2024
Royalty adjustmentProvisional royalty is finalProvisional royalty can be adjustedMining Act s.89(3), added by Finance Act 2024 s.60
HIV Response Levy0.1% of gross value, due with royaltySameF0626; Mining Act s.113A, added by Finance Act 2025

The register also prints a 4 percent rate for gold sold at refinery centres (F0624). That rate sits alongside the Bank rate and is not the same concession.

Two items need care. The HIV Response Levy is due when royalty is paid by persons liable for royalty. The Bank's 2024 notice predates the levy and does not mention it. Assume it applies on the Bank route until the Commission says otherwise. Second, the one third in-kind royalty rule in new section 87(2) has an unclear practical interaction with sales to the Bank. Ask the Commission how it is settled for your lots.

Our mineral royalty and inspection fee guide covers the full royalty table and the payment mechanics.

How does the set-aside affect your export permit?

This is where the obligation bites. VELMA Law and FB Attorneys both summarise the 2024 regulations to the same effect. A miner or dealer that has not set aside the required gold shall not be issued with a gold export permit. The Zatra register records this as regulation 3(7) of the amending regulations.

So the sequence for an exporting dealer runs like this:

  1. Buy or produce gold and record each lot.
  2. Deliver at least 20 percent to an approved refinery under the Bank programme, or to a local buyer the Commission has authorised.
  3. Obtain the Bank's payment and the assay and sale records.
  4. Apply for the export permit with evidence of the set-aside. The application fee is USD 100 (F0628).
  5. Pay royalty and inspection fee on the export lot at the standard rates and clear it for shipment.

Rive & Co, in a 9 May 2026 note, says set-aside evidence is attached to the export permit application. Confirm the current form and attachments with the Commission's office in your zone. Our mineral export permit guide covers the permit itself, and our import and export compliance service handles the shipment file.

What happens if you do not set aside gold?

The direct consequence is administrative. No set-aside means no gold export permit. A dealer whose stock cannot leave the country has a working capital problem within weeks.

Exporting gold without a permit is an offence under the Mining Act, and under-declared royalty is recovered with penalties. We have not verified the current section numbers or penalty amounts in the Revised Edition 2023, and the register holds no line for them, so we do not quote them.

FailureLikely consequenceStatus
Export lot without a matching set-asideExport permit refusedSettled in the regulations as summarised by two law firms
Gold shipped without a permitCriminal offence under the Mining Act; gold at risk of seizureSection and penalty to verify in R.E. 2023
Royalty unpaid or under-declaredRecovery with penalty and interest; licence exposureRates to verify with the Commission
Set-aside sold to an unauthorised buyerNot treated as a valid set-aside; permit riskPractice to confirm with the Commission

If gold has been seized, or a prosecution or licence cancellation is threatened, stop and instruct an advocate of the High Court. That is not a consulting matter.

Zanzibar: what applies?

The Mining Act applies to Tanzania Mainland, under section 2. The set-aside, the royalty concession and the Mining Commission's export permit therefore apply on the Mainland only.

As at November 2024, The Citizen reported that Zanzibar had no dedicated mining law. Extraction was then governed by the 2015 environmental law overseen by the Office of the First Vice President. We could not confirm whether a Zanzibar mining law has since been passed, so we mark it unknown. We found no Bank purchase arrangement specific to Zanzibar.

ItemMainlandZanzibar
Mining lawMining Act, Cap. 123No dedicated mining law reported as at November 2024; current position unknown
Gold set-asideNot less than 20 percent, Mining Act s.69 (R.E. 2023)No equivalent rule found
Bank of Tanzania purchasesDomestic Gold Purchase ProgrammeThe Bank is a Union institution; no Zanzibar-specific programme found
VAT on the saleZero-rated under the VAT Act, Cap. 148Zanzibar VAT is administered by ZRA under its own law; confirm treatment

Worked example: a dealer exporting 10 kg of gold

This example is illustrative. It uses the Bank's own printed price for 1 October 2024 so every figure can be checked. Use the day's Commission price for a real lot.

Baraka Minerals Ltd is a licensed gold dealer in Geita. In one month it buys 10 kg (10,000 grams) of gold and wants to export as much as it can. The minimum set-aside is 20 percent, so 2,000 grams go to the Bank route.

The 2 kg sold to the Bank

ItemBasisAmount (TZS)
Gross value2,000 g at 232,876.89465,753,780
Royalty4%, or 9,315.08 per gram (F0627)18,630,160
Inspection fee0% (F0627)0
Net paid by the Bank223,561.81 per gram447,123,620
HIV Response Levy, if applied0.1% of gross value (F0626)465,754
Refining costPaid by the Bank0

Had the same 2 kg gone out at standard rates, royalty at 6 percent would be TZS 27,945,227 and the inspection fee at 1 percent TZS 4,657,538 (F0624, F0625). That totals TZS 32,602,765, against TZS 18,630,160 on the Bank route. The concession is worth about TZS 13,972,605 on this lot, before refining costs the dealer would otherwise pay.

The 8 kg exported

At the same price, the 8,000 grams are worth TZS 1,863,015,120. Royalty at 6 percent is TZS 111,780,907 and the inspection fee at 1 percent is TZS 18,630,151. The export permit application costs USD 100 (F0628), paid at the rate on the control number. Keep the TZS and USD amounts separate.

The export permit application must show the 2 kg delivery. If Baraka had tried to export all 10 kg, the permit would be refused under the regulations.

Key dates

DateEvent
September 2022Bank of Tanzania establishes its gold purchase programme, per its June 2025 Monetary Policy Statement
30 June 2024Finance Act 2024 assented; amending trading regulations issued
1 July 2024New section 59, 4% Bank royalty, inspection fee waiver and VAT zero rating take effect
27 September 2024Mining Commission statement ordering exporters to set aside 20 percent from 1 October
1 October 2024Bank of Tanzania public notice; programme terms in force
16 June 2025Bank signs 20 percent purchase agreements with four producers and refiners
1 July 2025Finance Act 2025 removes the Government agreement carve-out; HIV Response Levy begins
December 2025Bank annual report: 6.2 tonnes of fine gold bought in 2024/25
11 August 2026Commission reports 21,710 kg bought by the Bank in 2025/26

The Bank of Tanzania Annual Report 2024/25 states that its gold reserves reached 6.5 tonnes, of which 6.2 tonnes were bought in 2024/25. The Monetary Policy Statement of June 2025 confirms that domestic gold purchases remain part of reserve building for 2025/26.

What to do now

  1. Confirm your status. Check whether you hold a mineral right or dealer licence that brings you under the set-aside, and whether an old Government agreement still affects you after 1 July 2025.
  2. Set up lot records. Track every purchase or production lot so each export lot can be matched to its 20 percent set-aside.
  3. Agree terms with a refinery. Confirm with the Commission which refineries the Bank currently accepts, then agree delivery, assay and turnaround times.
  4. Price on the day. Take the Commission's published price for the delivery date and plan for the price risk until receipt.
  5. Check the deductions. Confirm the 4 percent royalty, the inspection fee waiver and the HIV levy treatment on your settlement statement.
  6. File the export permit. Attach the set-aside evidence and pay the USD 100 application fee (F0628) against the control number.
  7. Reconcile VAT. Record the Bank sale as zero-rated and claim input tax in the month it arises.

How Zatra helps

Zatra's mining licensing team sets up dealer licences, maps the set-aside against your export plan and prepares export permit files. Our tax advisory service reviews royalty, withholding and VAT on each route.

Government fees and royalties are paid to the Mining Commission and TRA at the official rate against a control number. They are separate from Zatra's professional fee, which we quote in writing before work starts. Zatra does not decide or guarantee any authority's outcome. The Mining Commission, the Bank of Tanzania and TRA decide.

Seizures, prosecutions, licence cancellations, disputes with a buyer or refinery and formal legal opinions go to an advocate of the High Court. We work alongside your advocate or introduce one. To start, contact Zatra with your licence number and monthly volumes.

Sources and status

Accurate as at 6 November 2026.

Figures to confirm before you act

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.

Frequently asked questions

Can a foreign-owned dealer sell gold to the Bank of Tanzania?

Yes, if it holds a valid dealer licence. The register notes that a dealer licence-holding company must be at least 25 percent Tanzanian-held (F0622). The Bank's notice opens the programme to any licensed dealer, so ownership matters at the licence stage, not at the sale.

Is the Bank of Tanzania price lower than the export price?

The Bank pays a world market price published daily, so the headline price should track the export price. The difference lies in deductions. On the Bank route royalty is 4 percent, the inspection fee is nil and refining is paid, which often leaves the seller with more per gram.

Can I deliver unrefined gold to the Bank?

You deliver to an approved refinery, not to the Bank's counter. The refinery assays and refines the gold, and the Bank pays on the confirmed fire assay report. The Bank's 2025 presentation also describes buying unrefined gold from small-scale miners through selected aggregators.

Does the set-aside apply to copper, silver or gemstones?

No. The rewritten section 59 and the 2024 regulations speak of gold only. Silver or other by-products recovered from set-aside gold may be traded locally or exported. Other minerals follow their own royalty and export rules.

Can I sell the set-aside gold to a local jeweller instead?

Only if the Bank declines its pre-emption right and the Mining Commission authorises disposal to local refineries, smelters or jewellers. Selling to a jeweller without that authorisation risks the sale not counting toward your set-aside.

Are payments from the Bank subject to withholding tax?

The Bank's notice does not mention withholding tax on its payments. The 2 percent final withholding in the register (F0629) applies to purchases from PML holders and artisanal miners. Ask your tax adviser how it applies to your chain.

Does a mining company with a framework agreement still have to comply?

From 1 July 2025, yes. Section 77 of the Finance Act 2025 deleted the exemption for holders whose agreement with the Government provided otherwise. Companies with such agreements were expected to align their contracts, and several signed 20 percent purchase agreements with the Bank in June 2025.

How long does it take to be paid?

The Bank's notice says payment is made within 24 hours after it confirms the approved refinery's fire assay report. The total time therefore depends on how quickly the refinery completes and sends the assay. Agree that turnaround with the refinery in writing.

Sources & regulators

Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.

Brief the desk

This Insights page is orientation. Mining licensing in Tanzania is the commercial desk for the same facts. Zatra’s fee stays on its own line, separate from government, bank and regulator charges. Approvals are not guaranteed.

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Disclaimer

This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.

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