Executive Summary
Over the past decade, Tanzania's mining sector has undergone a profound transformation, evolving from a peripheral contributor to the economy into one of the country's most strategic growth engines. By 2024, the sector achieved a historic milestone by contributing 10.1% of national GDP, surpassing the government's 2026 target two years ahead of schedule.
Historic Achievement: Tanzania is now the leading mining economy in East Africa, with a mining GDP share nearly double that of Mozambique and far above regional peers such as Kenya and Uganda. The sustained contribution of mining—stabilizing at 9.5-10% of GDP in 2025—has played a critical role in supporting Tanzania's overall economic growth rate of about 5.8%, alongside agriculture and tourism.
Beyond headline GDP figures, the mining sector has become a cornerstone of government revenue mobilization and fiscal stability. Mining-related taxes, royalties, and levies rose sharply from TZS 624.6 billion in 2021/22 to an estimated over TZS 1.4 trillion in 2025, representing a year-on-year increase of more than 80%.
The sector has also redefined Tanzania's external economic position by becoming the country's largest source of foreign exchange. Mineral exports, dominated by gold, accounted for roughly 50-55% of total national exports in 2025, with export earnings estimated between USD 4.4 and 4.7 billion. High international gold prices (averaging around USD 2,500 per ounce) combined with increased production at major mines such as Geita and North Mara helped boost foreign exchange reserves to approximately USD 6.6 billion, providing more than five months of import cover.
1. GDP Contribution and Growth Trajectory
1.1 Mining Sector GDP Performance (2015-2025)
The mining sector's contribution to Tanzania's GDP has experienced remarkable growth over the past decade, increasing from approximately 3.8% in 2015 to a historic 10.1% in 2024. This growth trajectory demonstrates the sector's transformation into a primary economic driver for the nation.
| Year/Quarter | GDP Contribution (%) | Mining GDP (TZS Million) | Mining GDP (USD Million) | Growth Rate |
|---|
| 2015 | ~3.8% | 4,000,000 | 1,700 | - |
| 2018 | 4.8% | - | 2,960 | +26% |
| 2020 | 7.3% | 9,900,000 | 4,200 | +52% |
| 2021 | 7.2% | - | - | -1.4% |
| 2022 | 9.1% | 2,008,000 | 800 | +26% |
| 2023 | 9.1% | - | - | 0% |
| 2024 (Full Year) | 10.1% | 2,318,000 | 923 | +11% |
| 2025 Q1 | ~9.5% | 2,250,262 | 896 | -2.9%* |
| 2025 Q2 | ~9.5% | 2,335,835 | 930 | +3.8% (from Q1) |
| 2025 (Projected) | 10.0%+ | ~9,500,000 | ~3,785 | +5% |
Data Sources: National Bureau of Statistics Tanzania, Ministry of Minerals, Bank of Tanzania, Trading Economics
Note: *Quarter-over-quarter change from Q4 2024
Key Achievement: The mining sector achieved its 10% GDP target ahead of schedule in 2024 (reaching 10.1%), with growth continuing into 2025. The sector's GDP share stabilized around 9.5-10% in 2025, supported by expanded production in gold and emerging critical minerals like graphite and nickel. This growth contributed to Tanzania's overall GDP expansion of ~5.8% in 2025, with mining as a key driver alongside agriculture and tourism.
1.2 Regional Comparison - East Africa Mining GDP (2024)
Tanzania's mining sector significantly outperforms regional peers, establishing the country as the undisputed mining leader in East Africa. The country's mining GDP contribution is nearly double that of Mozambique, the second-ranked nation in the region.
| Rank | Country | Mining GDP (USD Million) | % of GDP |
|---|
| 1st | Tanzania | 923 | 10.1% |
| 2nd | Mozambique | 460 | 5.2% |
| 3rd | Uganda | 226 | 0.8% |
| 4th | Kenya | 189 | 0.3% |
| 5th | Rwanda | 140 | 1.2% |
1.3 Africa Continental Ranking (2024)
On the continental level, Tanzania ranks 4th in absolute mining GDP, demonstrating its significance in Africa's mining landscape. While countries like South Africa, Egypt, and Guinea have larger absolute mining GDP values, Tanzania's 10.1% GDP contribution percentage is among the highest on the continent.
| Rank | Country | Mining GDP (USD Billion) | % of National GDP |
|---|
| 1 | South Africa | 11.5 | 7-8% |
| 2 | Egypt | 5.8 | 4.5% |
| 3 | Guinea | 4.9 | 22% |
| 4 | Tanzania | 0.923 | 10.1% |
| 5 | Nigeria | 0.625 | <1% |
| 6 | Ghana | 0.580 | 5.2% |
| 7 | Zambia | 0.165 | 3.8% |
4. Employment Creation and Local Participation
Tanzania's mining sector has evolved into a significant employment generator, creating opportunities across formal and informal segments. The sector's commitment to local content has resulted in one of the highest rates of indigenous workforce participation in Africa's mining industry.
4.1 Direct Employment in Mining Sector (2020-2025)
350,000+
Total Employment (2025)
16,000
Large-Scale Mining Jobs
| Category | 2020 | 2022 | 2024 | 2025 (Estimate) | Growth (2020-2025) |
|---|
| Total Mining Employment | 310,000 | 37,800* | 310,000+ | ~350,000+ | +12.9% |
| Large-scale Mining | - | - | 14,742 | ~16,000 | - |
| Medium-scale Mining | - | - | 3,100 | ~3,500 | - |
| Small-scale Mining (ASM) | - | - | 1,514** | ~40,000+ | - |
| Tanzanian Workers | - | - | 18,853 | ~340,000 | - |
| Foreign Workers | - | - | 503 | ~600 | - |
| Tanzanian Share (%) | - | - | 97.4% | 97.1% | - |
Notes:
*2022 data reflects formal sector only
**2024 data for licensed small-scale operations; actual ASM participation much higher
***2025 includes expanded ASM sector and new critical mineral projects
2025 Employment Expansion: The sector's workforce grew to approximately 350,000+ in 2025, driven by:
- New projects in critical minerals (graphite, nickel, lithium)
- Expansion of existing gold operations
- Increased formalization of artisanal and small-scale mining (ASM)
- Growth in mining support services and local content suppliers
Policy Impact: Tanzania's local content requirements continue to drive high Tanzanian workforce participation, with indigenous ownership requirements (20% in mining ventures) creating additional employment multipliers in support industries.
4.2 Employment Distribution by Scale (2021-2024)
The formal mining sector shows a clear concentration of employment in large-scale operations, which offer higher wages and more stable working conditions. However, small and medium-scale mining provide crucial livelihood opportunities in rural areas.
| Mine Scale | Number of Employees | % of Total | Average Wage (TZS/month) | Average Wage (USD/month) |
|---|
| Large-scale | 14,742 | 76% | 850,000 | ~$339 |
| Medium-scale | 3,100 | 16% | 520,000 | ~$207 |
| Small-scale | 1,514 | 8% | 280,000 | ~$112 |
| Total (Formal) | 19,356 | 100% | 609,000 | ~$243 |
4.3 Local Content Performance (2024)
Tanzania's local content framework has achieved exceptional results, with Tanzanian-owned companies accounting for over 91% of total sales in the mining industry. This demonstrates the effectiveness of policies requiring indigenous participation in mining ventures.
| Metric | Value | Target | Achievement Rate |
|---|
| Local Content Plans Reviewed | 1,050 | 1,050 | 100% |
| Plans Meeting Standards | 1,036 | 1,050 | 98.7% |
| Local Company Sales (USD Billion) | 3.47 | - | - |
| Local Share of Total Sales (%) | 91.7% | 80% | 114.6% |
| Tanzanians in Workforce (%) | 97.4% | 90% | 108.2% |
Outstanding Achievement: Tanzanian-owned companies sold USD 3.47 billion worth of products in 2024, accounting for 91.7% of the total sales in the industry. This far exceeds the 80% target, demonstrating robust local economic participation and value retention within Tanzania.
5. Gold Production and Reserves
Gold production remains the cornerstone of Tanzania's mining sector, with the country ranking among Africa's top gold producers. Recent years have seen record production levels, though 2025 figures reflect strategic shifts toward local value addition through new refining requirements.
5.1 Tanzania Gold Production Trends (2014-2025)
60,000 kg
Record Production (2024)
1.93M oz
Troy Ounces (2024)
$2,500/oz
Avg. Gold Price (2025)
42,000+ kg
Projected Output (2025)
| Year/Period | Production (kg) | Production (Troy Ounces) | Value (USD Million)* | Growth Rate |
|---|
| 2014 | 40,000 | 1,286,000 | 1,543 | - |
| 2017 | 43,000 | 1,382,000 | 1,658 | +7.5% |
| 2018 | 39,000 | 1,254,000 | 1,505 | -9.3% |
| 2020 | 47,000 | 1,511,000 | 2,867 | +20.5% |
| 2024 (Full Year) | 60,000 | 1,929,000 | 4,230 | +27.7% |
| 2025 Q1 | 9,539 | 306,606 | 692 | - |
| 2025 Q3 (Up to Sep) | 10,574 | 339,929 | 878 | Highest quarterly output |
| 2025 (Projected) | ~42,000+ | ~1,350,000+ | ~3,375+ | -30%** |
Notes:
*Based on average annual gold prices
**Decline reflects new refining mandates requiring 20% local processing, affecting export volumes but increasing value addition domestically
Production Context:- 2024 saw record production of 60,000 kg (CEIC Data)
- 2025 production projected at ~42,000+ kg, with quarterly data showing strong Q3 performance (10,573.7 kg, valued at $878.3 million)
- The apparent decline is influenced by new local refining requirements (20% must be processed domestically)
- Production remains robust at major mines including Geita and North Mara
5.2 Major Gold Mines Production (2019/2020)
Tanzania's gold production is concentrated among several major mines operated by international mining companies. Geita Gold Mine, operated by AngloGold Ashanti, is the country's largest producer, accounting for 43% of total output.
Geita Gold Mine
Operator: AngloGold Ashanti | Region: Mwanza
North Mara Gold Mine
Operator: Barrick (Twiga) | Region: Mara
| Mine | Operator | Production Share (%) | Annual Output (oz) | Region |
|---|
| Geita | AngloGold Ashanti | 43% | 649,730 | Mwanza |
| North Mara | Barrick (Twiga) | 21% | 317,310 | Mara |
| Buzwagi | Acacia/Barrick | 10% | 151,100 | Shinyanga |
| Shanta | Shanta Gold | 6% | 90,660 | Songwe |
| Bulyanhulu | Barrick (Twiga) | 3% | 45,330 | Kahama |
| Stamigold | STAMICO | 1% | 15,110 | Biharamulo |
| Others | Various | 16% | 241,760 | Various |
| Total | - | 100% | 1,511,000 | - |
5.3 Gold Reserves and Resources
Tanzania possesses substantial gold reserves and resources, with an estimated total of 45 million ounces. At current gold prices, these reserves represent over $107 billion in potential value, securing the country's position as a major gold producer for decades to come.
Total Estimated Gold Value: $107.4 Billion
15.0M oz
Probable Reserves
20.0M oz
Indicated Resources
| Category | Quantity (Million Ounces) | Value (USD Billion)* | update tanzania_mining_part3 | Value (USD Billion) | | Value (USD Billion) | % of Total | | |
|---|
| Proven Reserves | 10.0 | 23.9 | 22% |
| Probable Reserves | 15.0 | 35.8 | 33% |
| Indicated Resources | 20.0 | 47.7 | 45% |
| Total Estimated | 45.0 | 107.4 | 100% |
Note: *Based on gold price of $2,388/oz (2024 average). At 2025 prices (~$2,500/oz), total value would exceed $112 billion.
Long-Term Sustainability: With 45 million ounces in total reserves and resources, Tanzania has the capacity to maintain significant gold production for multiple decades. The combination of proven reserves (10M oz) and probable reserves (15M oz) provides a solid foundation for continued mining operations, while indicated resources (20M oz) offer substantial growth potential through further exploration and development.
6. Critical Minerals and Future Potential
Tanzania is strategically positioning itself as a key player in the global transition to clean energy and electric vehicles. The country possesses significant deposits of critical minerals essential for battery production, renewable energy technologies, and advanced electronics.
6.1 Tanzania's Critical Mineral Inventory
6 Types
Critical Minerals Identified
Top 10
Global Ranking (Graphite)
24 Types
Rare Earth Elements
| Mineral | Global Ranking | Estimated Reserves | Primary Use | Development Stage |
|---|
| Graphite | Top 10 | Large deposits | EV batteries | Production/Expansion |
| Nickel | Top 15 | 58 million tons | EV batteries, steel | Development |
| Rare Earth Elements (REE) | Top 20 | 24 types identified | Electronics, renewables | Exploration |
| Cobalt | Top 20 | Significant | EV batteries | Exploration |
| Lithium | Emerging | Being assessed | EV batteries | Exploration |
| Uranium | Top 10 globally | Large reserves | Nuclear energy | Exploration |
Strategic Positioning: Tanzania's critical mineral endowment positions the country at the forefront of the global energy transition. With graphite, nickel, and rare earth elements all in various stages of development, Tanzania is poised to become a major supplier to the electric vehicle and renewable energy sectors, reducing global dependence on concentrated supply chains.
6.2 Major Critical Mineral Projects (2024-2025)
Several world-class critical mineral projects are advancing through development stages, attracting significant international investment and technological partnerships.
Kabanga Nickel Project
Investor: Lifezone Metals (UK) | Minerals: Nickel, Copper, Cobalt
Bunyu Graphite Project
Investor: Volt Resources (AUS) | Mineral: Graphite
Ngualla Rare Earth Elements Project
Mineral: Rare Earths | Type: Exploration
| Project | Mineral | Investor | Investment (USD Million) | Status | Expected Production |
|---|
| Kabanga Nickel | Nickel, Copper, Cobalt | Lifezone Metals (UK) | 75+ | Development | High-grade sulphide |
| Bunyu Graphite | Graphite | Volt Resources (AUS) | 37 | Under construction | 40,000 tons/year |
| Lindi Jumbo | Graphite | Walkabout Resources | - | Development | Battery-grade |
| Mahenge Graphite | Graphite | Black Rock Mining | - | Early works | Industrial scale |
| Ngualla REE | Rare Earths | - | 3,150 | Exploration | Various REEs |
| Tembo Nickel | Nickel | - | Under negotiation | Negotiation | - |
6.3 Investment Inflows (2025)
The mining sector has emerged as the primary driver of foreign direct investment in Tanzania, attracting 41% of total national investment in 2025. This reflects strong investor confidence in Tanzania's geological potential and improved regulatory environment.
| Investment Category | Amount (USD Million) | Share (%) | Key Projects/Focus Areas |
|---|
| Total National Investment | 10,950 | 100% | 915 total projects |
| Mining Sector Projects | 4,500 | 41% | Graphite, nickel, lithium, gold, REE |
| Mining-related Infrastructure | 3,550 | 32% | Railway, ports, power grid |
| New Mining Investments (2025) | 306 | 2.8% | 13 new mining projects |
| Other Sectors | 2,594 | 24% | Agriculture, tourism, manufacturing |
2025 Investment Highlights:- Total investment across Tanzania reached $10.95 billion, with mining projects leading inflows
- 13 new mining projects attracted $306 million in fresh investments in 2025
- Critical minerals (graphite, nickel, lithium, rare earths) dominate new project pipeline
- Infrastructure investments totaling $3.55 billion support mining sector expansion
- Mining sector continues to attract ~41% of total national investment, demonstrating confidence in Tanzania's geological potential and regulatory framework
7. Licensing and Regulatory Framework
Tanzania has established a comprehensive regulatory framework governing mining operations, with clear licensing procedures and competitive fiscal terms designed to balance revenue generation with investment attraction.
7.1 Mining Licenses Issued (2021-2024)
| License Type | Issued | Target | Achievement Rate |
|---|
| Total Licenses | 34,348 | 37,318 | 92.0% |
| Small-scale Mining | 30,101 | 32,923 | 91.4% |
| Prospecting Licenses | 2,845 | 3,000 | 94.8% |
| Gemstone Dealer Licenses | 1,234 | 1,200 | 102.8% |
| Mining Licenses | 156 | 180 | 86.7% |
| Special Mining Licenses | 12 | 15 | 80.0% |
7.2 Royalty Rates by Mineral Type
Tanzania's royalty structure is differentiated by mineral type, with higher rates for precious metals and gemstones compared to industrial minerals. All minerals are subject to a 1% inspection fee in addition to royalties.
| Mineral Category | Royalty Rate (%) | Inspection Fee (%) | Total Government Take (%) |
|---|
| Diamonds & Gemstones | 6.0 | 1.0 | 7.0 |
| Precious Metals (Gold, Silver, Platinum) | 6.0 | 1.0 | 7.0 |
| Uranium | 6.0 | 1.0 | 7.0 |
| Base Metals (Copper, Nickel) | 6.0 | 1.0 | 7.0 |
| Industrial Minerals | 3.0 | 1.0 | 4.0 |
| Cut & Polished Gemstones | 1.0 | 1.0 | 2.0 |
| Coal | 1.0 | 1.0 | 2.0 |
| Salt | 1.0 | 1.0 | 2.0 |
7.3 Government Equity Participation
Tanzania maintains a policy of government equity participation in mining projects, with a minimum 16% free carry interest in all large-scale mining operations. This ensures the government benefits directly from mining profits beyond tax and royalty revenues.
| Project Type | Minimum Free Carry Interest (FCI) | Additional Equity Option | Total Possible |
|---|
| Large-scale Mining | 16% (non-dilutable) | Up to 34% | 50% |
| Special Mining License | 16% (non-dilutable) | Commensurate with tax expenditures | 50% |
| Medium-scale | Negotiable | Negotiable | Varies |
Free Carry Interest Explained: The 16% free carry interest means the government receives this equity stake without contributing to capital costs. This non-dilutable interest ensures Tanzania benefits from mining profits throughout the life of the project, complementing tax and royalty revenues.
8. Inspection and Compliance
The government has significantly strengthened inspection and compliance monitoring across all mine categories, with over 47,000 inspections conducted in 2024 alone. This robust oversight ensures adherence to safety, environmental, and operational standards.
8.1 Mining Inspections Conducted (2024)
96%
Large-Scale Compliance
47,500+
Small-Scale Inspections
75%
Overall Compliance Rate
| Mine Type | Number of Inspections | Compliance Rate (%) | Key Focus Areas |
|---|
| Large-scale Mines | 85 | 96% | Full regulatory compliance |
| Medium-scale Mines | 144 | 87% | Safety, environmental standards |
| Small-scale Mines | 47,500+ | 72% | Formalization, safety practices |
| Total | 47,729 | 75% | All standards |
Inspection Impact: The substantial increase in inspections, particularly in the small-scale mining sector (47,500+ inspections), demonstrates the government's commitment to formalizing the artisanal and small-scale mining sector while ensuring worker safety and environmental protection. The high compliance rate among large-scale mines (96%) reflects the maturity of regulatory systems for major operations.
9. Social and Economic Impact
Beyond direct economic contributions, Tanzania's mining sector has generated substantial social impact through corporate social responsibility investments and community development initiatives. Mining companies have become major contributors to local infrastructure and social services.
9.1 Corporate Social Responsibility (CSR) Investment
TZS 17.08B
Total CSR Investment
500,000+
Direct Beneficiaries
| Year | CSR Investment (TZS Billion) | CSR Investment (USD Million) | Key Areas |
|---|
| 2023/2024 | 17.08 | 6.81 | Schools, hospitals, roads, water |
9.2 Community Development Projects
Mining companies have implemented comprehensive community development programs focusing on education, healthcare, water infrastructure, and transportation. These investments directly benefit over 500,000 people in mining communities.
| Project Type | Number of Projects | Investment (TZS Million) | Beneficiaries |
|---|
| Schools Construction/Renovation | 45 | 3,850 | 25,000+ students |
| Healthcare Facilities | 28 | 4,200 | 150,000+ people |
| Water Infrastructure | 67 | 5,100 | 200,000+ people |
| Road Construction | 34 | 3,930 | Multiple communities |
| Total | 174 | 17,080 | 500,000+ |
9.3 Infrastructure Development Linked to Mining
Large-scale infrastructure projects have been developed to support mining operations, creating broader economic benefits. These include railway lines, port facilities, and power grid upgrades that serve both mining operations and surrounding communities.
| Infrastructure Project | Investment (USD Billion) | Purpose | Timeline |
|---|
| Tanzania-Zambia Railway Revival | 1.40 | Mineral transport | 2025-2055 (30-year) |
| Tanzania-Burundi Railway | 2.15 | Western mining regions access | 2025-2028 |
| Kigoma Port & Malindi Terminal | 0.50 | Export infrastructure | 2025-2027 |
| Grid Upgrades (Kabanga Project) | 0.08 | Mining operations power | 2025-2026 |
Infrastructure Multiplier Effect: These infrastructure investments, totaling over $4 billion, extend far beyond mining operations. The railway and port developments will enhance trade connectivity across East and Central Africa, while power grid upgrades support industrial development and improve electricity access for surrounding communities.
10. Key Performance Indicators and Milestones
10.1 Sector Performance Dashboard (2024-2025)
Tanzania's mining sector has consistently exceeded targets across multiple key performance indicators, demonstrating the effectiveness of policy reforms and favorable market conditions.
| Indicator | 2024 Achievement | 2025 Achievement | 2026 Target | 2025 Status |
|---|
| GDP Contribution | 10.1% | 9.5-10.0% | 10.0% | ✅ On Target |
| Tax Revenue (TZS Million) | 753,820 | ~1,400,000 | 800,000 | ✅ Exceeded |
| Export Value (USD Million) | ~3,200 | 4,400-4,700 | 4,000 | ✅ Exceeded |
| Direct Employment | 310,000+ | ~350,000+ | 340,000 | ✅ Exceeded |
| Local Content (%) | 91.7% | 92.5% | 90.0% | ✅ Exceeded |
| Tanzanian Workforce (%) | 97.4% | 97.1% | 95.0% | ✅ Exceeded |
| Foreign Reserves Impact (USD Bn) | 5.8 | 6.6 | 6.0 | ✅ Exceeded |
| National GDP Growth Contribution | ~1.0% | ~0.58% (of 5.8% total) | 0.8% | ✅ Strong |
2025 Performance Highlights:- Mining sector maintained its 10% GDP contribution target despite quarterly fluctuations
- Tax revenue collection exceeded annual targets by mid-year, reaching $1.4 billion for the full year
- Gold exports hit record levels ($4.4-4.7 billion), driven by favorable prices and expanded production
- Employment grew 13% to 350,000+, incorporating new critical mineral projects
- Foreign exchange reserves strengthened to $6.6 billion, providing >5 months import cover
- Mining contributed significantly to Tanzania's overall 5.8% GDP growth in 2025
10.2 Vision 2030 Targets - Mining Sector
Tanzania has established ambitious targets for 2030 as part of its long-term development vision. Current progress demonstrates strong momentum toward achieving these goals.
| Objective | Current Status (2024) | 2030 Target | Progress (%) |
|---|
| Geoscientific Survey Coverage | 16% | 50% | 32% |
| GDP Contribution | 10.1% | 15% | 67% |
| Value Addition (Local Processing) | 15% | 40% | 38% |
| Employment Creation | 19,356 formal | 50,000 formal | 39% |
| Export Earnings (USD Bn) | 4.7 | 8.0 | 59% |
11. Comparative Analysis: Tanzania vs. Regional Peers
11.1 Mining Sector Contribution Comparison
Tanzania's mining sector outperforms regional peers across multiple dimensions, from GDP contribution to employment generation and export earnings.
| Country | Mining GDP % | Employment (000s) | Mineral Exports (USD Bn) | Key Minerals |
|---|
| Tanzania | 10.1% | 19.4 | 4.70 | Gold, diamonds, tanzanite |
| Kenya | 0.3% | 8.5 | 0.15 | Soda ash, fluorspar |
| Uganda | 0.8% | 12.0 | 0.20 | Gold, cement |
| Rwanda | 1.2% | 6.8 | 0.45 | Tin, tantalum, tungsten |
| Zambia | 3.8% | 85.0 | 9.50 | Copper, cobalt |
| DRC | 25.0% | 200.0 | 15.00 | Copper, cobalt, diamonds |
11.2 Investment Attractiveness Index (2024)
Tanzania scores highly on investment attractiveness metrics, particularly in regulatory framework, local content compliance, and geological potential.
| Factor | Tanzania Score | Regional Average | Africa Average |
|---|
| Regulatory Framework | 78/100 | 65/100 | 60/100 |
| Geological Potential | 85/100 | 70/100 | 75/100 |
| Infrastructure | 65/100 | 60/100 | 55/100 |
| Political Stability | 72/100 | 68/100 | 62/100 |
| Local Content Compliance | 92/100 | 70/100 | 65/100 |
| Overall Score | 78/100 | 67/100 | 63/100 |
Key Findings and Strategic Recommendations
Key Findings:
- Historic Achievement: Tanzania's mining sector reached 10.1% GDP contribution in 2024, surpassing the 2026 target ahead of schedule.
- Revenue Surge: Tax revenue increased 85.6% year-on-year to $1.4 billion in 2025, demonstrating improved governance and compliance.
- Regional Leadership: Tanzania is the undisputed mining leader in East Africa with GDP contribution nearly double that of closest competitors.
- Employment Impact: The sector directly employs over 350,000 workers (97.1% Tanzanians) with strong local content performance (91.7% local sales).
- Export Dominance: Mineral exports reached $4.4-4.7 billion in 2025, accounting for approximately 50-55% of total national exports.
- Future Potential: Strategic focus on critical minerals (graphite, nickel, lithium, REEs) positions Tanzania for sustained growth in the clean energy transition era.
Strategic Recommendations:
1. Accelerate Value Addition
Expand local processing and refining capacity to capture more economic value domestically. The 20% local refining mandate is a good start, but greater value addition opportunities exist in gemstone cutting, mineral processing, and battery materials production.
2. Scale Up Geoscientific Surveys
Increase geological survey coverage from current 16% to achieve 50% by 2030. Enhanced geological data will attract more investment and unlock new mineral discoveries, particularly for critical minerals.
3. Strengthen Infrastructure
Continue investing in railway, port, and power infrastructure to support growing mining operations. The $4+ billion infrastructure pipeline should be accelerated to reduce operational costs and improve competitiveness.
4. Enhance Skills Development
Establish specialized mining training institutions and technical programs to build local capacity for technical mining positions, reducing reliance on foreign expertise and creating higher-value employment.
5. Diversify Mineral Portfolio
Accelerate development of critical mineral projects (graphite, nickel, lithium, REEs) to reduce dependency on gold and position Tanzania as a key supplier in global clean energy supply chains.
6. Leverage MSP Partnership
Maximize benefits from Tanzania's participation in the Minerals Security Partnership (MSP) to attract investment, technology transfer, and market access for critical minerals development.
Conclusion
Tanzania's mining sector has undergone a remarkable transformation over the past decade, evolving from a peripheral contributor to become one of the country's most strategic economic pillars. The achievement of 10.1% GDP contribution in 2024—two years ahead of schedule—demonstrates the sector's robust growth trajectory and the effectiveness of policy reforms.
With mineral exports exceeding $4.7 billion, revenue collections surpassing $1.4 billion, and employment reaching 350,000+, the mining sector has proven its capacity to drive economic growth, generate government revenue, create employment, and support infrastructure development.
Looking ahead, Tanzania's strategic focus on critical minerals positions the country at the forefront of the global energy transition. As the world shifts toward electric vehicles and renewable energy, Tanzania's deposits of graphite, nickel, lithium, and rare earth elements offer tremendous growth potential. With continued policy support, infrastructure investment, and commitment to local content, Tanzania's mining sector is poised to deliver sustained economic and social benefits for decades to come.
Data Sources: Tanzania National Bureau of Statistics, Ministry of Minerals, Tanzania Mining Commission, Bank of Tanzania, World Bank, Trading Economics, CEIC Data, Various industry reports (2024-2025)
Report Compiled: January 2026
Keywords: #TanzaniaMining, #EconomicTransformation, #MiningForDevelopment, #ResourceLedGrowth, #CriticalMinerals, #RevenueMobilization, #ExportGrowth, #LocalContent, #AfricaMining, #SustainableDevelopment