Tanzania’s Mineral Sector:A Strategic engine for economic transformation

When President Samia Suluhu Hassan’s government unveiled preparations for Tanzania’s Development Vision 2050—DIRA 2050—one message was unmistakable: minerals are no longer just “resources in the ground,” they are the backbone of Tanzania’s journey to upper middle and eventually high income status.

From the graphite belts of Mahenge and Nachingwea to the goldfields of Geita and the unique tanzanite hills of Mererani, Tanzania is repositioning its mineral endowment as a driver of industrialization, jobs, technology, and national sovereignty over strategic assets.

“Minerals are a blessing only if they change lives,” Minister for Minerals Anthony Mavunde has repeatedly stressed. “Our responsibility is to ensure that Tanzania’s mineral wealth builds a strong, industrial and prosperous nation by 2050.”

A Decade of take off: Mining’s growing role in the economy

Over the past ten years, mining has shifted from a supporting act to one of Tanzania’s main growth engines.

• According to the Bank of Tanzania and the National Bureau of 

Statistics, the mining and quarrying sector has been contributing 

around 9–10 percent of GDP in recent years, up from about 3–4 

percent a decade ago.

• In 2023, mineral exports—dominated by gold—earned the 

country over USD 3 billion, making minerals one of Tanzania’s 

top foreign exchange sources, alongside tourism and 

traditional agricultural exports.

• The government’s target is to push the sector’s contribution 

well beyond 10 percent of GDP by 2030, with a sustained, higher 

share of export earnings as new strategic mineral projects come 

onstream.

Gold remains the anchor. Tanzania consistently ranks among Africa’s top gold producers, with major operations in Geita, North Mara, Bulyanhulu and other belts. But the story is no longer just about bullion. Rapidly rising interest in graphite, nickel, lithium and rare earths—critical to the global energy transition—is diversifying Tanzania’s mineral portfolio.

This dynamic growth directly supports DIRA 2050’s pillar of building a diversified, competitive, export driven economy, less vulnerable to commodity swings in a single product.

From raw ore to industrial powerhouse: Value addition as a national imperative

One of the most visible policy shifts of the past five years is the move from exporting raw minerals to processing them domestically.

Under the Mining Act (as amended), subsequent regulations and ministerial directives, Tanzania has:

• Restricted the export of unprocessed mineral concentrates and 

certain raw gemstones.

• Encouraged the establishment of local refineries, smelters, 

cutting and polishing facilities.

• Linked mining operations with Special Economic Zones (SEZs) 

and Export Processing Zones (EPZs) to stimulate industrial 

clusters around mining regions.

Today, Tanzania boasts several gold refineries licensed to process doré into refined gold that meets international standards, reducing the need to export semi processed product. In Arusha and Manyara, tanzanite cutting and polishing centers are steadily replacing the old model of shipping rough stones abroad.

Once, up to 80–90 percent of Tanzanian tanzanite left the country in rough form. Now, an increasing share is cut, graded and branded locally, capturing higher margins, supporting jewelry manufacturing, and building a Tanzanian “signature” in global gemstone markets.

“Value addition is not optional; it is a national imperative,” says Minister Mavunde. “Every mineral processed locally creates jobs, transfers skills and increases national income.”

DIRA 2050 explicitly envisions a knowledge based and industrialized economy, and minerals are at the heart of this agenda: refining gold, producing battery grade graphite and nickel, and growing downstream manufacturing—from jewelry and alloy production to battery components and even EV related industries in the longer term.

Jobs, skills and local content: Mining as a People’s Industry

Mining in Tanzania is not just about multinational giants. It is a complex ecosystem of:

• Large scale mines

• Medium scale Tanzanian companies

• Artisanal and Small Scale Miners (ASMs) in gold, gemstones 

and industrial minerals

• Thousands of local suppliers and service providers

The Ministry of Minerals estimates that when you include ASM activities, transport, construction, security, catering, and other services, hundreds of thousands, if not over a million Tanzanians derive their livelihoods from mining and associated value chains.

DIRA 2050 places strong emphasis on inclusive growth, making sure prosperity reaches ordinary households, not just boardrooms. In response, the government has tightened and enforced local content regulations, requiring mining companies to:

• Employ Tanzanians in most positions and have clear plans for 

skills transfer.

• Prioritize Tanzanian owned firms in procurement of goods 

and services.

• Partner with local businesses for logistics, engineering, camp 

services, environmental management, and more.

Tanzanian entrepreneurs are increasingly visible in these supply chains—from companies supplying mining equipment and spare parts to firms providing IT solutions and laboratory services.

“Mining must translate into real opportunities for our people—jobs, businesses, and skills that remain long after the minerals are extracted,” Mavunde has insisted in various stakeholder meetings. The emergence of local mining service champions in hubs like Mwanza, Geita, Kahama and Mbeya shows that this message is beginning to bear fruit.

Financing national development

Beyond jobs and exports, the mineral sector is now a key contributor to Tanzania’s public finances.

Reforms initiated from 2017 onwards—strengthening the role of the State through twinned ownership in large projects, revised fiscal regimes, and more transparent contracts—have significantly increased revenue flows from minerals. Government collections now include:

• Royalties on production.

• Corporate income taxes from profitable operations.

• Service levies to local government authorities.

• Dividends from state equity in strategic mines through entities 

such as STAMICO and special government shares in joint ventures.

In 2022/23, official data show that mineral revenues contributed a sizable chunk of total domestic revenue, helping fund free basic education, expanded healthcare coverage, rural water schemes, roads, ports, and energy projects—all core enablers of DIRA 2050.

Meanwhile, the rollout of Mineral Trading Centers (MTCs) across major producing regions—Geita, Kahama, Chunya, Manyara, Arusha and others—has reduced smuggling, particularly of gold and gemstones, and made it easier for ASMs to sell legally and transparently. This has improved both state revenue and miners’ incomes.

“Every shilling collected from minerals must translate into improved social services and infrastructure for Tanzanians,” Mavunde has emphasized. “That is the true meaning of resource ownership.”

Strategic minerals for a green and digital future

DIRA 2050 is being shaped in a world shifting rapidly toward decarbonization, renewable energy and advanced technologies. Tanzania is positioning itself at the center of this global transition.

Key strategic minerals include:

• Graphite – Tanzania hosts some of the world’s highest grade 

flake graphite deposits in Mahenge, Nachingwea and 

Ruangwa, with several projects at advanced exploration or 

early production stages. Graphite is essential for lithium ion 

battery anodes.

• Nickel – Projects in Kabanga and other belts have the potential to make Tanzania a significant supplier of class one nickel for EV batteries and high tech alloys.

• Lithium – Exploration in southern and central Tanzania is 

ongoing, with early discoveries indicating potential for future 

commercial exploitation.

• Rare Earth Elements (REEs),  Deposits such as Ngualla in 

Songwe Region highlight Tanzania’s emerging role in supplying 

REEs for wind turbines, electronics and defense industries.

The government’s strategy is clear: don’t just export raw strategic minerals. Instead, build domestic capacity for:

• Concentrate production

• Refining to battery grade materials

• Research and development partnerships

• Skills and technology transfer

This vision not only boosts economic returns but also increases geopolitical relevance, as global players—from the EU, to Asia, to North America, seek secure, responsible sources of critical minerals.

Aligning with DIRA 2050, these developments are being framed within sustainable and climate resilient approaches: stronger environmental standards, community development agreements, and investments in greener mining technologies.

Governance, stability and investor confidence

Tanzania’s policy shift has been assertive yet increasingly predictable—a combination that investors watch closely.

Key policy and governance highlights include:

• Greater clarity in mining legislation and regulations, with 

emphasis on transparency and dispute resolution.

• Institutional strengthening of the Mining Commission and the 

Ministry of Minerals for better oversight.

• A strong push toward formalization of artisanal and small 

scale mining, including ASM licenses, training on safer 

practices, and better access to finance.

• Integration of mining into broader national planning under 

DIRA 2050 and the Third Five Year Development Plan (FYDP 

III), signaling a long term commitment rather than ad hoc 

decisions.

This governance framework aims to strike a balance: protect national interests and sovereignty, while providing a stable, rules based environment that attracts high quality, technology bringing, socially responsible investment.

Minerals as a Pillar of DIRA 2050

As DIRA 2050 crystallizes Tanzania’s ambition to become an inclusive, resilient, and high income economy, minerals are no longer treated as a peripheral extractive activity. They are a central pillar of national transformation.

The sector is:

• Driving GDP growth and export earnings.

• Powering industrialization and value addition.

• Creating jobs, businesses, and technology transfer 

opportunities for Tanzanians.

• Providing domestic revenue to finance infrastructure and 

social services.

• Positioning Tanzania as a strategic player in the global green 

and digital economy.

Under strong political will and clear policy direction, the guiding philosophy is straightforward but profound: every ounce of mineral extracted must move Tanzania closer to the DIRA 2050 vision—a modern, industrial, and prosperous nation where mineral wealth is felt in homes, schools, hospitals, roads, and factories across the country.

As Minister Mavunde puts it, “Our goal is to ensure that minerals contribute meaningfully to the national economy by increasing value addition, strengthening local participation, and ensuring that Tanzanians benefit across the entire value chain.”

In this new era, Tanzania’s mineral sector stands not just as a source of wealth buried deep underground, but as a cornerstone of economic sovereignty and long term national development