State eyes historic 600bn/- mineral revenue

State eyes historic 600bn/- mineral revenue

REVENUE collection from the mining sector is set for a historic record as the government eyes an annual turnover of over 600bn/- during the 2020/21 financial year.

Mining sector, springing up at an average of 17.7 per cent, is the fastest growing industry followed by construction, thanks to the reforms spearheaded by President John Magufuli’s administration.

Minister for Minerals Mr Doto Biteko revealed here that the government expects to generate more than 600bn/- --the highest collection ever registered since the country's independence.

The minister made the revelation yesterday when he visited the ongoing Geita Mining Exhibition at Bombambili grounds on the outskirts of the town.

He said the mining sector's contribution to the government’s coffer rose from 161bn/- in 2014 to 528bn/- in 2020. The sector accounts to 52 per cent of all foreign currency and commands 51.9 per cent of the value of the exported products.

“The reforms in the mining sector have accelerated considerable transformation in the industry. Currently, tables have also turned as majority Tanzanians are now involved in exporting minerals,” he said.

According to the minister, Tanzania, which ranks third in Africa and 18th in the world, is among countries with massive gold reserves.

“We have phased out bureaucracies and I can confirm that we now receive foreigners, who want to sell their gold into our markets,” he said.

Under the new reforms, the government established mineral markets across all the regions. In Geita alone, there are nine gold markets.

He lauded the Geita regional and local authorities for organising the unique platforms that bring together small scale miners, entrepreneurs and large mining firms to showcase their technologies as well explore more opportunities in the sector.

Geita Regional Commissioner Eng Robert Gabriel explained that the exhibition was basically designed to help small miners and entrepreneurs in the mining sector meet with the markets.

“We meet here to understand our stages for growth as well as challenges we face,” he said.

Gold worth over 1.96bn/- transact every day in the region's gold markets, according to the RC.

Eng Gabriel said the contribution of smallholder miners is set to increase should the group adopt latest technology in their line of operation. He urged banks to support the group to be able to improve its technologies.

Meanwhile, Eng Gabriel urged small scale miners to form partnerships and build one large mining company that can help create more jobs, improve productivity and livelihood of the people and the community at large.

National Bank of Commerce (NBC) Director of Retail Banking Mr Elibariki Masuke assured that the financial institution was ready to work with the small scale miners as well as entrepreneurs in the mining sector, stressing that the bank was at an advanced stage of setting up a special package for the mining sector players.


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