TANZANIA’S mining sector has experienced notable growth over recent decades, cementing its role as a cornerstone of the nation’s economy.
With its abundant mineral resources, including gold, diamonds, tanzanite and various industrial minerals, Tanzania has attracted significant foreign investment and established itself as a leading mineral producer in Africa.
The forthcoming 5th International Mining Investment Conference, scheduled to take place in Dar es Salaam from November 19th to 21st, is poised to further stimulate the sector’s expansion.
This year’s conference theme, “Value Added Minerals for Social and Economic Development,” underscores the event’s focus on enhancing the sector’s contributions to Tanzania’s economy.
The announcement of this international event was made on August 21st in Dar es Salaam by Minister of Minerals, Anthony Mavunde (pictured). He highlighted Tanzania’s readiness to host the conference, aiming to attract investors from around the globe to the bustling commercial hub of Dar es Salaam.
Minister Mavunde noted that the conference will convene a diverse group of international stakeholders, including investors, mineral researchers, miners, government officials and foreign representatives.
The central agenda will revolve around exploring investment opportunities in mineral value addition and addressing the rising global demand for essential minerals.
“It is the directive of President Dr. Samia Suluhu Hassan that all minerals mined in the country should contribute more significantly to the GDP, enhance job opportunities for Tanzanians, foster technological advancements in the sector and drive overall social and economic development,” Minister Mavunde stated. Emphasising the conference’s theme, Minister Mavunde expressed that the event will provide a crucial platform for comprehensive discussions.
These discussions are expected to chart a new course for the mining sector in Tanzania, revealing fresh investment opportunities and facilitating technology transfer. Reflection on Key Issues: Growth and Current Status of Tanzania’s Mining Sector Tanzania’s mining sector has seen remarkable growth, contributing approximately 6.7 per cent to the country’s GDP, up from 3.5 per cent a decade ago.
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This increase is a direct result of the government’s strategic efforts to attract investment and modernise mining operations. Historically, the mining sector has been a cornerstone of Tanzania’s economy, significantly impacting both GDP and export revenues. Mining Policy Reforms and Institutional Developments To foster a more favourable investment climate, the Tanzanian government has enacted several policy reforms.
The Mineral Policy of 2009 and the Mining Act of 2010 were particularly influential. These reforms aimed to enhance transparency, encourage local benefaction and boost the mineral value chain.
Notably, the Mining Act of 2010 introduced protective measures for national interests, including increased royalties on minerals and requirements for foreign mining companies to establish joint ventures with local firms.
Additionally, the Act mandated that a portion of minerals be processed domestically before export, promoting the growth of value-added industries within Tanzania. In 2017, the government established the Tanzania Mining Commission (TMC) to oversee the implementation of these policies, regulate the industry and ensure compliance with mining laws.
The TMC is responsible for issuing licenses, monitoring mining activities and resolving disputes, thereby streamlining regulatory processes and boosting investor confidence. To enhance government participation in the sector, the State Mining Corporation (STAMICO) was restructured and revitalised.
STAMICO’s mandate includes promoting local participation in mining activities, managing state-owned mining assets and facilitating joint ventures between local and foreign investors. This restructuring has allowed the government to play a more active role in the sector, ensuring that the benefits of mining are more broadly shared.
Local Content and Infrastructure Development
The introduction of local content regulations has been another key development. These regulations require mining companies to procure a certain percentage of goods and services locally, aimed at increasing Tanzanian participation in the sector, creating jobs and stimulating the growth of local industries.
For instance, mining companies are now required to source machinery, equipment and other services from local suppliers, which has led to the growth of ancillary industries and increased the sector’s contribution to the economy.
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Recognising the critical role of infrastructure in attracting investment, the Tanzanian government has heavily invested in improving transportation and energy infrastructure, particularly in mining regions.
The construction of new roads, railways and power projects has facilitated the movement of goods and services, reduced operational costs for mining companies and made remote mineral-rich areas more accessible for exploration and extraction. In summary, Tanzania’s mining sector has experienced significant growth due to strategic policy reforms, institutional developments and investments in local content and infrastructure.
These efforts have transformed Tanzania into one of Africa’s leading mining hubs, ensuring that the benefits of its rich mineral resources are maximised for national development.
Impact on Investment and Modernisation in Tanzania’s Mining Sector Increased Foreign Direct Investment (FDI)
The Tanzanian government’s reforms have markedly boosted Foreign Direct Investment (FDI) in the mining sector.
According to the Bank of Tanzania, FDI inflows to the mining sector surged to $1.3 billion in 2022, up from $800 million in 2018.
This investment increase is attributed to the country’s stable regulatory environment, improved infrastructure and a government committed to supporting investors’ success. The influx of investment has accelerated the modernisation of mining operations across Tanzania.
Foreign investors have introduced advanced technologies, such as automated drilling and extraction equipment, which have significantly enhanced efficiency and productivity.
This modernisation has also led to improved safety standards, reduced environmental impact and increased output. For instance, the Geita Gold Mine, one of Tanzania’s largest gold producers, upgraded its operations, resulting in a 15 percent increase in gold production between 2019 and 2022. Similarly, the Williamson Diamond Mine has adopted modern processing techniques that have improved diamond recovery rates.
Growth of Value-Added Industries
The government’s emphasis on local benefaction has fostered the growth of value-added industries in Tanzania. New processing plants have been established, including a gold refinery in Mwanza that processes Tanzanian gold before export. This has not only boosted the country’s export revenues but also created jobs and strengthened Tanzania’s position in the global mineral market.
Expansion of Exploration Activities
Efforts to attract investment have also led to increased exploration activities throughout Tanzania. Numerous foreign and local companies have been granted exploration licenses, resulting in the discovery of new mineral deposits. Recent exploration in the Lake Victoria Goldfields has uncovered significant gold reserves, further solidifying Tanzania’s status as a leading gold producer in Africa.
Mineral Production
Tanzania is the fourth-largest gold producer in Africa, with gold exports constituting over 90 per cent of the total mineral export value. In 2022, Tanzania’s gold production reached 50.8 tonnes, generating over $3 billion in revenue. In addition to gold, Tanzania is a leading global producer of tanzanite, a rare gemstone found only in the Mererani Hills near Mount Kilimanjaro. The country also has substantial diamond deposits, particularly from the Williamson Diamond Mine, one of the world’s oldest continuously operating diamond mines.
Regulatory and Policy Framework
The government has been proactive in encouraging mineral benefaction and value addition within the country. The Mineral Policy of 2009 and the Mining Act of 2010, along with subsequent amendments, emphasise local benefaction, ensuring that the country maximises its returns from the mining sector.
These regulations mandate that a percentage of minerals, particularly gold, be processed within Tanzania before export. Through strategic policy reforms, infrastructure investments and the establishment of regulatory frameworks, Tanzania’s government has successfully transformed the mining sector into a dynamic and modern industry. This transformation has played a crucial role in the country’s economic development and positioned Tanzania as a significant player in the global mining industry.
Economic Benefits of the 5th International Mining Investment Conference
The 5th International Mining Investment Conference presents Tanzania with a strategic platform to showcase its mineral wealth and investment opportunities to a global audience. Held under the theme “Value Added Minerals for Social and Economic Development,” the conference will focus on how Tanzania can leverage its mineral resources to foster both economic growth and social development.
Attracting Foreign Investment
The conference is anticipated to draw over 1,000 delegates, including investors, government officials and industry experts from around the world. This influx offers a prime opportunity for Tanzania to attract new investments in the mining sector, especially in value addition and processing industries. Increased foreign investment could lead to the establishment of additional processing plants, creating jobs, facilitating technology transfer and boosting export revenues.
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Promoting Local Benefaction Aligned with Tanzania’s goals of enhancing local value addition, the conference will encourage discussions on best practices, innovations and technologies to improve local benefaction. This emphasis on value addition is expected to increase the country’s export value, develop a more skilled workforce, contribute to industrialisation and stimulate growth in other economic sectors.
Enhancing Economic Development
The conference will also underscore the role of the mining sector in Tanzania’s broader economic development. Miningrelated activities—such as infrastructure development, local procurement and corporate social responsibility initiatives— have a significant multiplier effect on the economy.
The influx of foreign delegates will boost Dar es Salaam’s hospitality and tourism sectors, while the partnerships and discussions at the conference could yield longterm economic benefits.
Furthermore, the conference provides a forum for the Tanzanian government to engage with industry stakeholders, address challenges and discuss regulatory improvements. This dialogue is crucial for maintaining a stable and transparent mining environment, which is essential for sustained investment and growth in the sector. The development of Tanzania’s mining sector has been a cornerstone of the country’s economic growth.
The upcoming International Mining Investment Conference offers a unique opportunity to build on this momentum. By focusing on value addition and local benefaction, the conference aims to attract foreign investment while enhancing Tanzania’s ability to generate greater economic and social benefits from its mineral resources.
As Tanzania continues to build on its mining success, the sector is poised to play an even more significant role in the country’s journey towards sustainable development and economic prosperity. We encourage Tanzanian delegates and participants to leverage their knowledge and skills effectively to achieve the goals of this international meeting. Together, we can advance Tanzania’s progress.
