TANZANIA: TANZANIA commitment to leveraging the country’s abundant mineral resources for economic prosperity through several key initiatives and public statements is significantly paying off.
The government has set specific economic targets, such as increasing the mining sector’s contribution to GDP.
Since taking office, President Samia Suluhu Hassan has clearly articulated her government’s commitment to harnessing Tanzania’s rich mineral resources for economic prosperity.
In her address at the official opening of the Tanzania Investment and Mining Forum 2023, delivered by Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, President Samia outlined a vision for a dynamic and thriving mining industry that is essential for significant economic growth, job creation and sustainable development.
The forum, themed “Unlocking Tanzania’s Future Mining Potential,” reflects the country’s ambitions to maximise its mineral resources.
President Samia said that in addition to gemstones, Tanzania is rich in critical minerals such as nickel, copper, lithium and rare earth elements (REEs). She emphasised the enormous economic potential of these resources, particularly in light of the global shift toward clean energy and sustainable technologies.
“As the world seeks to reduce carbon emissions, the demand for these critical minerals is expected to soar,” she said, reaffirming Tanzania’s commitment to becoming a leading global supplier.
Citing a 2023 International Energy Agency report, she noted that the demand for strategic minerals will triple by 2030, positioning Tanzania as a key player in the global market.
President Samia emphasised Tanzania’s readiness to welcome international investors and foster partnerships to explore and exploit the country’s vast mineral wealth for mutual benefit. She highlighted the importance of balancing investor profits with long-term economic development.
She pointed out that the mining sector has significantly contributed to Tanzania’s economic growth, with its contribution to the national GDP rising from 7.3 per cent in 2021 to 9.1 per cent in 2022 and a targeted contribution of over 10 per cent by 2025.
This growth has also seen a notable increase in foreign exchange earnings, climbing from 1.6 billion US dollar in 2018 to 3.4 billion US dollars in 2022.
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Employment in the sector doubled within three years, creating more than 16,000 jobs in large and medium-sized mines by 2022, while small-scale mining provided opportunities for over 1.5 million people.
President Samia reiterated her government’s commitment to making the mining sector an engine for sustainable economic development and integrating it with other critical industries like manufacturing and agriculture.
She urged investors to explore not just the extraction of minerals but the entire value chain, including processing and the manufacturing of finished products like car batteries and fertilisers.
Despite the country’s rich mineral deposits, she acknowledged that insufficient geological data remains a challenge and outlined plans to improve data availability through modern exploration methods, such as High-Resolution Geophysical Surveys, which will provide more accurate information on Tanzania’s mineral potential.
President Samia expressed confidence that improved geological data would facilitate cost-effective discovery of new deposits, unlocking the nation’s mining potential.
Additionally, she assured participants that her government is working to enhance key infrastructures, including reliable electricity and modern transport networks, to support mining operations.
She announced that major mines, including Geita Gold Mines Limited (GGML) and STAMIGOLD Biharamulo Mine, which had previously operated without stable electricity, are now fully connected to the national grid.
“This connection has not only improved production efficiency but also reduced operational costs, making these mines more sustainable in the long term,” she noted.
More than 350 small-scale mining operations have also been connected to the national power grid, enhancing efficiency and reducing production costs. Road projects are underway across the country to ease the transportation of minerals, particularly coal, from mines to consumers.
President Samia pointed out various initiatives to boost productivity in the sector, including providing drilling rigs to small-scale miners for more cost-effective exploration. These efforts aim to increase production, improve access to capital through loans and ensure that even the smallest players in the mining industry can thrive.
She encouraged financial institutions to support the mining sector by offering loans to both large-scale and small-scale operations. This support is crucial for unlocking the sector’s full potential and achieving the ambitious goal of contributing 10 per cent or more to the GDP by 2025.
President Samia also noted the government’s proactive approach in forming partnerships, having signed agreements with nine international mining companies to mine valuable minerals such as nickel, graphite, rare earth elements and gold.
Tanzania is open for business, she urged, encouraging more investors to seize the opportunity to invest in exploration, mining, processing and the entire mineral value chain.
The country has also significantly improved infrastructure, where the government is investing in essential infrastructure improvements, such as reliable electricity and transport networks, which are crucial for supporting mining operations and attracting further investment.
It has also been working to enhance geological data improvement. Acknowledging the challenge of insufficient geological data, President Samia has proposed modern exploration methods to enhance data availability, making it easier for investors to discover new deposits.
The government has also been forging partnerships with mining companies. The signing of agreements with international mining firms to explore valuable minerals reflects her proactive approach in establishing Tanzania as a key player in the global mining market.
Through these actions and commitments, President Samia has articulated a clear strategy to harness Tanzania’s mineral resources for the country’s economic development.
