Tanzania’s gold exports rose to $4.3 billion in the year to August, 36% up on a year ago, according to the country’s central bank, as the precious metal surged to record highs.
The price of gold topped $4,000 per ounce for the first time on Tuesday — 50% higher than last year, an increase that helped gold become the country’s top export earner.
However, analysts warned that a reliance on foreign investors and joint ventures mean a large part of gold export revenues leave Tanzania’s economy. “The long-term goal should be building local capacity,” Gorah Abdallah, a lecturer at the Tanzania Institute of Accountancy, told The Citizen.
The price of gold, a safe haven asset in times of global uncertainty, has been driven up by factors including expectations of a US Federal Reserve rate cut and the US government shutdown.