Tanzania banks on formal markets, benchmark pricing system to curb mineral smuggling

SONGEA: THE Ministry of Minerals has said that the establishment of formal mineral markets and the introduction of a benchmark pricing system in Ruvuma Region have significantly reduced mineral smuggling while boosting government revenue and improving earnings for small-scale miners.

The ministry disclosed this on Monday noting that Ruvuma currently has two official mineral markets, the Songea Mineral and Gem Market in Songea and the Tunduru Mineral and Gem Market, which was officially inaugurated by President Samia Suluhu Hassan on September 26, 2024.

Additionally, the Ruvuma Regional Mines Officer Alphonce Bikulamchi said the achievements were a result of government reforms aimed at strengthening oversight of the mineral trade through transparent and competitive formal markets.

Eng Bikulamchi said before the establishment of the markets, some miners lacked official centres to sell their minerals, a situation that fuelled illegal trading and smuggling, depriving the government of revenue while forcing small-scale miners to sell their minerals at unfair prices.

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“Miners are now receiving accurate benchmark price information for their minerals, which has increased transparency, closed loopholes for fraud and strengthened confidence in the mineral trade,” he said.

Additionally, he said that the presence of buyers from within and outside the country had increased price competition, enabling miners to sell their minerals at better market value.

Moreover, he said that the government has pledged to continue improving the mineral business environment by strengthening market supervision and providing education to miners to ensure the sector continues contributing to national economic growth and community development.

According to Eng Bikulamchi, the move has also increased the participation of small-scale miners in the formal economy and helped curb mineral smuggling in the region.