Tanzania to begin Gold Trading System, Brokers will be buying gold from small -scale miners in the eight official centres

Photo - ShutterstockThe first ever International gold exchange in Tanzania is set to begin this month in line with President. John Magufuli’s latest directive to ensure that Tanzania takes a lead in the International gold business.According to the Federation of Miners Association of Tanzania (FEMATA), there are more than six million small-scale miners across Tanzania.

The international gold bullion will boost the earnings of small scale miners generated from gold mining activities as well as maximise government revenues

Last month a bill designed to remove payment of withholding tax of 5 per cent and 18 per cent value added tax by small-scale miners in the country was endorsed.

Brokers will be buying gold from small -scale miners in the eight official centres established in the Tanzanian Geita region before trading with dealers in the gold market.

Geita regional Commissioner, Robert Gabriel announced that two Tanzanian banks, CRDB and Azania are finalising branch set-ups within the gold –trading complex to aid safe and secure transactions. “Since the gold market will attract huge volumes of business, banks will facilitate smooth transactions in the business,” he said.

“The gold exchange will also open up other business venues such as hotels, in the region, increasing the use of airports within proximity”, Gabriel adds.

Bank of Tanzania Research Manager, Dr. Nicas Yabu, highlights the economic advantages.

“The gold exchange will help the country get correct statistics of gold exports and earnings generated,” he said, noting that, initially, the business will be conducted manually but with time it will be linked with the institution’s systems for monitoring.

Tanzania will join other African countries with existing exchanges- Botswana with a Diamond exchange and South Africa with a gold exchange.

Tanzania is ranked fourth in gold production in Africa after South Africa, Ghana and Mali. The key gold mining areas in the country are Geita, Mwanza, Shinyanga, Mbeya and Mara.

Geita accounts for almost 35 per cent of Tanzania’s gold output.