Gold Trading in Tanzania: Legal Guide

By Advocate Wyclif Mandele | GERPAT Solutions

Navigating gold trading in Tanzania requires a clear understanding of local mining laws, regulatory requirements, and export compliance. As Africa’s fourth-largest gold producer, Tanzania produced a record 60,000 kg of gold in 2024, generating over $3.84 billion in export revenues. Gold accounts for more than half of the country’s total mineral revenue and over 40% of its national exports.

Whether you are an international investor, a corporate entity, or a regional trader, entering Tanzania’s gold market presents massive opportunities…

In this legal guide, we break down how the Tanzanian gold supply chain works, who holds trading rights, and how to stay 100% compliant under current laws.

1. The Legal Framework: Key Laws Governing Tanzanian Gold

Before you write a single contract or transfer funds, you must understand the legal statutes that regulate the sector:

• The Mining Act, Cap. 123: The primary law governing all mineral rights, trading licences, refining, royalties, and export controls.

• Mining (Mineral Trading) Regulations: Outlines the exact application procedures for broker, dealer, and export permits.

• Mining Trading Amendment Regulations (2024): Introduced the mandatory 20% domestic gold set-aside rule and established the Bank of Tanzania’s pre-emption rights.

• Finance Acts 2024 & 2025: Section 77 of the Finance Act 2025 removed all set-aside exemptions. The 20% domestic processing rule now applies to all licence holders without exception. It also introduced the 0.1% HIV Response Levy and zero-rated VAT on domestic gold supplies.

• Natural Wealth & Resources (Permanent Sovereignty) Act (2017): Crucial Rule: All contracts involving Tanzanian minerals must be governed by Tanzanian law and resolved in local courts or forums. Any contract specifying foreign law or offshore arbitration is legally void.

2. Licence Hierarchy: Who Can Buy, Process, and Export?

Tanzanian law establishes a strict hierarchy for handling gold. Operating outside your designated licence scope is illegal.

Primary Mining Licence (PML)

• Who it’s for: Reserved exclusively for Tanzanian citizens running small-scale mining operations.

• What it allows: Holders can mine gold and sell it directly at government-sanctioned Mineral and Gemstone Auction Centres (Mineral Markets).

• Limitations: PML holders cannot buy gold from external sources or export it.

Broker Licence (BL)

• Who it’s for: Tanzanian citizens or local companies acting as regional aggregators.

• What it allows: Brokers buy gold from small-scale miners at designated buying stations and sell it to licensed dealers.

• Limitations: Brokers cannot export gold. They act strictly as an internal bridge between miners and dealers.

Dealer Licence (DL)

• Who it’s for: Corporate entities with at least 25% Tanzanian ownership and local management control.

• What it allows: This is the core commercial licence. Dealers can acquire gold from miners or brokers, apply for export permits, and sell internationally.

Processing, Smelting, and Refinery Licences

• Processing Licence (PCL): Required for crushing, washing, and ore beneficiation.

• Smelting Licence (SL): Allows operators to extract metal from concentrates using heat to produce dore bars.

• Refinery Licence (RFL): The highest processing tier, allowing facilities to purify gold up to 99.9% (24K) investment grade.

3. The Gold Purchase Chain: From Pit to Market

To protect your business from regulatory penalties, you must acquire gold through the approved five-step sequence:

[ Primary Mining Licence (PML) ]  ---> Sells at Official Mineral Markets
              │
              ▼
[ Broker Licence (BL) ]            ---> Aggregates locally (No Export Rights)
              │
              ▼
[ Dealer Licence (DL) ]            ---> Holds Export Rights
              │
              ├─── Mandatory 20% Set-Aside ──> Local Refineries / Smelters / BoT
              └─── 80% Export Output ─────────> Global Markets

1. Extraction: Mined under a valid Primary Mining Licence, Mining Licence, or Special Mining Licence.

2. Sale at Mineral Markets: Small-scale miners sell their raw gold at one of 28 official government trading hubs, where royalties are recorded.

3. Broker Aggregation: Local brokers purchase small quantities and consolidate supply.

4. Dealer Acquisition: Licensed dealers purchase directly from official markets or verified brokers.

5. The 20% Domestic Set-Aside Gate: Before applying for an export permit, a dealer must set aside 20% of their gold to sell to local smelters, local refineries, or the Bank of Tanzania (BoT).

4. The Bank of Tanzania (BoT) Gold Purchase Programme

In October 2024, the Bank of Tanzania launched a gold buying programme to build national reserves. While selling 20% locally is mandatory, choosing the BoT route offers major financial savings compared to standard commercial exports:

By using designated refinery centers like Mwanza Precious Metals Refinery or Geita Gold Refinery under the BoT programme, dealers cut their effective tax burden nearly in half while securing fast liquidity.

5. Step-by-Step Export Process for the Remaining 80%

Once you fulfill your 20% domestic set-aside obligation, you can export the remaining 80% by following these six mandatory steps:

1. Licence & Entity Verification: Confirm your active status on the Mining Commission portal (madini.go.tz), ensure valid BRELA registration, and check your TRA tax standing.

2. Assay Testing by TMAA: Send the gold to the Tanzania Minerals Audit Agency (TMAA) for fire assay or XRF analysis to verify purity and weight.

3. Obtain a Certificate of Origin: Secure documentation confirming the gold was legally mined in Tanzania to meet international conflict-free standards.

4. Settle Royalties and Taxes: Pay applicable mineral royalties, export taxes, inspection fees, and the 0.1% HIV Response Levy to the Tanzania Revenue Authority (TRA).

5. Apply for a Mining Commission Export Permit: Submit Form MTF.13 through the Tanzania Mining Commission portal alongside your assay reports and set-aside receipts. Permit approval usually takes 48 to 72 hours.

6. Secure Transit and Logistics: Transport your shipment using licensed high-security carriers (such as Brinks or G4S) through designated customs ports like Julius Nyerere International Airport.

6. Practical Takeaways for Investors and Corporate Operators

To run a compliant and profitable gold trading operation in Tanzania, keep these core principles in mind:

• Never buy outside official markets: Buying gold informally or from unverified sources is a serious criminal offence under Section 18 of the Mining Act, leading to immediate confiscation and arrest.

• Treat the 20% set-aside as a hard prerequisite: You cannot skip the local processing rule. The Mining Commission will not grant an export permit without proof of compliance with the set-aside.

• Leverage the BoT programme for higher margins: Lower royalty rates (4%) and zero inspection fees make domestic sales to the central bank commercially advantageous.

• Structure contracts under Tanzanian law: Ensure your joint-venture agreements, supply contracts, and purchase orders align strictly with Tanzanian jurisdiction to remain legally enforceable.

• Plan for a 2- to 4-week compliance window: Factor assay testing, tax clearances, and permit processing times into your supply chain and delivery commitments.

Need Expert Legal Guidance in Tanzania’s Mining Sector?

Navigating corporate compliance, company registrations, and intellectual property rights in East Africa requires experienced legal counsel.

For tailored legal support structuring your gold trading, refining, or corporate operations in Tanzania and Zanzibar, contact Advocate Wyclif Mandele and the compliance team at GERPAT Solutions.

• Website: new.gerpatsolutions.co.tz/

• Email: info@gerpatsolutions.co.tz

Legal Disclaimer: This article is published for general educational and informational purposes only and does not constitute formal legal advice. Readers should consult a qualified legal practitioner in Tanzania before undertaking specific commercial or investment activities.