DAR ES SALAAM — Tanzania’s mining industry is attracting increased investment as the government shifts its focus beyond gold towards critical minerals, mineral processing and greater local participation in the mining value chain.
Government revenue from mining increased from TZS 526 billion in 2020/21 to more than TZS 1.4 trillion in 2025/26, exceeding the annual target by 16 per cent, according to figures presented by Minerals Minister Anthony Mavunde. The sector’s contribution to GDP also rose from 9.1 per cent in 2023 to 10.1 per cent in 2024, with its contribution subsequently averaging around 11.9–12 per cent.
Investment has also increased. Foreign direct investment stock in Tanzania’s mining sector reached US$9.79 billion in 2024, compared with US$9.15 billion in 2023.
While gold remains the sector’s largest export earner, generating approximately US$4.75 billion in 2025, Tanzania is increasingly positioning deposits of nickel, graphite, cobalt, lithium and rare earth elements as part of its longer-term minerals strategy.
Minister Mavunde said the country’s ambitions extend beyond exporting raw minerals.
“Tanzania is no longer just a gold story. We are the future of the global green energy transition.”
The government is also promoting mineral beneficiation and domestic processing, with President Samia Suluhu Hassan calling for greater investment in processing industries and industrial parks during the St Petersburg International Economic Forum in June.
The strategy could create opportunities for businesses involved in mineral processing, equipment, logistics, engineering and other services supporting mining operations.
Several projects are already being advanced in the critical-minerals space. The Kabanga Nickel Project is being developed by Lifezone Metals, while Volt Resources is progressing the Bunyu Graphite Project. The government has also signed an agreement with Panda Hill Tanzania Limited to advance the development of niobium, a mineral used in specialised steel and high-performance alloys.
Local participation is another area of growth. The number of Tanzanians employed in mining increased from 6,668 in 2018 to more than 18,800 in 2024, representing over 97 per cent of mining employment. Local procurement also rose from 62 per cent to 88 per cent over the same period, according to the figures reported by The Citizen.
For smaller operators, the artisanal and small-scale mining sector remains significant. The government has issued 511 mining licences and facilitated TZS 187 billion in financing, while small-scale miners now account for nearly 40 per cent of nationally collected gold, according to the report.
The broader direction of the sector is increasingly tied to value addition and participation in global mineral supply chains. Assistant Lecturer at the University of Dar es Salaam’s School of Mines and Geosciences Dismas Kalitenge said investment in processing, research and skills could allow Tanzania to move beyond supplying unprocessed minerals.
For businesses and investors, the expanding mining agenda creates opportunities across the wider supply chain, from processing and technology to logistics, equipment and professional services, as Tanzania seeks to capture more economic value from its mineral resources.
