• Strike a deal

    Strike a deal

    In an effort to curb smuggling and illegal gold exports, the Tanzanian government has announced the launch of mineral trading centres countrywide.

    The trading hubs, which are to be established by mid-year, will provide small-scale and artisanal miners with access to a regulated market.

    According to a Reuters report, Tanzania is Africa’s fourth-biggest gold producer, making the mineral an important source of foreign exchange. However, while its small-scale miners contribute around 20 tons of gold per annum, some 90% is illegally exported. Part of the problem is that most formal gold dealers are based in Dar es Salaam and other major towns, posing a logistical problem for informal miners in outlying regions.

    ‘All mineral-producing regions should set up these trading centres as soon as possible to serve small miners,’ says Prime Minister Kassim Majaliwa. He adds that the centres will be jointly supervised by officials from a state-run mining commission and the state revenue service. They will also have banks to provide financial services to the dealers and miners.

    The first mineral trading centre, which was recently inaugurated in Geita, is to serve as a model for others.

    26 March 2019
    Image: Gallo/Getty Images