Govt targets 90pc local mining procurement

MWANZA: THE Government plans to increase Tanzanian companies’ share of revenue generated from procurement of goods and services in the mining sector to 90 per cent in the next two years as part of efforts to retain more economic benefits locally.

Statistics show that mining companies and service providers purchased goods and services worth about 5.35tri/- in 2025, with Tanzanian companies receiving 4.60tri/-, equivalent to 86 per cent of total expenditure.

Minister for Minerals Anthony Mavunde said the Government would not relax existing laws to accommodate companies facing challenges in meeting local content requirements aimed at expanding opportunities for Tanzanians.

He said the Government would continue providing mining companies with policy certainty, institutional support and a competitive business environment while ensuring consistent enforcement of local content obligations.

Speaking during the opening of the Fifth Local Content Compliance Forum yesterday in Mwanza, Mr Mavunde said achieving the 90 per cent target would be central to the next phase of reforms aimed at increasing participation of local suppliers, professionals and manufacturers in the mining value chain.

“The Government will continue supporting mining companies, but compliance with local content requirements remains mandatory. We will not compromise laws intended to create opportunities for Tanzanians,” he said.

The Government intends to close the remaining gap through stronger compliance, supplier development and increased involvement of local firms in high-value areas that still depend heavily on imported goods and specialised services.

The target comes as Tanzania continues to attract investment in new mines, mineral processing plants and strategic mineral projects, which are expected to create increased demand for engineering services, equipment, technology, professional expertise and industrial inputs.

Mr Mavunde said Tanzania’s mining policy and legal framework remained stable, insisting that stronger enforcement of local content requirements should not be viewed as a change in the country’s investment environment.

Mining companies would continue receiving support to develop viable projects and address genuine technical and operational challenges through established Government channels.

However, such engagements would remain within the framework of laws governing local procurement, employment, technology transfer and participation of Tanzanians across the mining sector.

The Minister said the Government’s approach reflected President Samia Suluhu Hassan’s vision of expanding mining activities while ensuring the sector delivers greater and sustainable benefits to the economy.

He said the administration had strengthened cooperation between the Government and mining companies, improved regulatory coordination and supported new investments while ensuring growth creates opportunities for Tanzanian businesses, workers and manufacturers.

Particular attention is being placed on Regulation 13A and the 20 categories of goods and services reserved for companies that meet prescribed Tanzanian ownership requirements.

The categories include areas where local businesses already have capacity or can develop capacity through investment, partnerships and technical support.

Mr Mavunde acknowledged that some mining companies had experienced difficulties restructuring procurement systems and supplier arrangements to comply with the requirements, particularly where foreign suppliers had historically dominated certain areas.

ALSO READ: Tanzania hailed for rapid increase in number of its citizens engaged in mining sector

He said such challenges should be addressed through proper compliance planning, development of capable local suppliers and engagement with the Mining Commission.

The Government will also strengthen verification of companies seeking contracts reserved under local content regulations.

Mr Mavunde said registration documents and nominal shareholding would not be considered alone, adding that assessments would examine actual ownership, management control, decision-making authority, operational capacity and the distribution of commercial benefits.

The approach, he said, would protect the integrity of local content laws and ensure opportunities benefit companies with genuine Tanzanian ownership, technical capability and operational presence.

He also challenged local suppliers benefiting from reserved opportunities to improve their competitiveness by providing quality goods and services that meet mining industry standards in safety, reliability, pricing and delivery.

“The Government does not intend to force mining companies to accept products or services that do not meet required standards. Our goal is to build a competitive local supply chain capable of supporting modern mining operations,” he said.

Tanzanian companies were urged to invest in skilled personnel, modern equipment, technology, financial systems and good corporate governance.

Mr Mavunde encouraged businesses to form joint ventures, consortia and strategic partnerships to overcome financial and technical limitations and compete for larger contracts.

Such partnerships would enable local firms to participate in specialised areas including engineering, equipment maintenance, mining technology, manufacturing and other high-value services.

The Minister said Tanzania wanted local participation to move beyond routine supplies and develop into activities that create technological capacity and support industrial development.

He also called on financial institutions to develop suitable financing products for mining suppliers, particularly working capital and equipment financing.

Many local companies, he said, require long-term financing to establish manufacturing operations and enter specialised areas of the mining industry.

The Government will continue implementing supplier development programmes and encouraging transparent procurement systems that provide qualified Tanzanian companies with fair access to opportunities.

The 90 per cent target forms part of a broader strategy to position Tanzania as a regional hub for mining supplies, technology, professional services and mineral-related manufacturing.

Mr Mavunde said mining companies would remain key partners in the sector’s growth, but must comply fully with laws designed to ensure the country’s mineral resources generate lasting economic benefits for Tanzanians.