Ministry outlines strategies to maximise mineral wealth

DODOMA: THE Tanzanian government is set to establish an Export Guarantee Scheme (EGS) to enable local miners to secure capital domestically, a strategic move designed strengthen the domestic economy and expand mining operations.

Minister for Minerals, Anthony Mavunde, announced the plan during a recent two-day working session with the ministry’s management in Dodoma.

The EGS is intended to unlock local bank financing for miners and ensure that profits generated from the country’s mineral wealth remain within its borders.

The Minister highlighted that Tanzanian miners currently struggle to secure large loans from local banks because their main revenue source—exports—involves inherent risks (such as political risk, exchange rate fluctuations and foreign buyer default) that domestic banks are often unwilling or unable to underwrite.

He said they have begun a comprehensive strategy to execute directives issued by President Samia Suluhu Hassan, to maximise the country’s mineral wealth.

The ministry is implementing President Samia’s directives made during her speech at the inauguration of the 13th Parliament, as well as during the swearing-in of cabinet ministers,

The initiative aims to strengthen the management of Tanzania’s mineral resources to increase the sector’s contribution to the national economy, support development projects, and ensure that citizens benefit directly from the country’s mineral wealth.

He said the president expects the sector to deliver tangible value for the nation. “The president has placed great expectations on this sector. She wants to see our mineral resources generating real value for the country and for Tanzanians,” Mr Mavunde said.

He said that fulfilling the president’s directives requires commitment, speed, and innovation across the ministry and its institutions.

“We must ensure that all instructions related to reforms and the development of the mining sector are implemented effectively to increase its contribution to national development and GDP,” he added.

The minister directed the Permanent Secretary in the docket, Engineer Yahya Samamba to meet with ministry experts and coal producers, to discuss existing challenges and identify strategies for developing coal to meet demand from local industries and regional markets.

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“There are many iron and steel factories, as well as industries in neighbouring countries, that need coal for production. This is an opportunity for our producers and for the government to benefit more from these resources,” Mr Mavunde noted.

Minister Mavunde also called for innovative ideas to increase government revenue, strengthen the supervision of mining activities, and broaden economic opportunities, including those targeting youth and women.

Deputy Minister for Minerals, Dr Steve Kiruswa, urged ministry staff to perform their duties with professionalism, integrity, and discipline.

“Proper execution of responsibilities is key to increasing revenue and protecting national resources,” he said.

On his part, Eng Samamba underscored the importance of value addition across the mining sector.

“Increasing domestic value addition will create jobs for Tanzanians, expand the local economy, and raise the sector’s contribution to national income,” he said.

Earlier, Commissioner for Minerals Dr Abdul Rahman Mwanga outlined 14 priority areas identified by President Samia for the development of the mining sector.

These priorities will guide the ministry in expanding production, enhancing governance, increasing value addition, and ensuring communities benefit from the country’s mineral wealth.