The Tanzanian government’s recent allocation of TZS 118 billion for electricity infrastructure in mining areas is expected to significantly boost investment in the sector, according to Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko.
Speaking at the 7th National Mining Technology Exhibition in Geita on October 5, 2024, Dr. Biteko emphasized that reliable electricity is a critical incentive for attracting both local and international investors to the mining industry.
The funds will be used to electrify over 90 mining areas in the Lake Zone, a move that will improve productivity and operational efficiency for miners.
Dr. Biteko highlighted that this investment forms part of the broader efforts by the Sixth Phase Government to enhance economic growth and create a favorable business environment for investors.
He stressed that reliable electricity will reduce operational costs and increase the appeal of Tanzania as a destination for mining investments.
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President Samia Suluhu Hassan’s administration continues to prioritize infrastructure development in the mining sector as a key strategy for economic expansion.
Dr. Biteko noted that providing electricity to mining regions will benefit both large-scale and small-scale miners.
"By modernizing their operations with the use of electricity and clean energy, small-scale miners will be able to adopt advanced technology, improve efficiency, and reduce environmental impact," he said.
"The use of appropriate technology, backed by electricity, is essential for the sector’s sustainability and growth" he added.
Dr. Biteko emphasized that modernizing mining operations will not only create more jobs but also foster value addition in mineral processing, which will further enhance Tanzania's position in the global mining industry.
The Tanzanian government’s commitment to expanding the electricity grid in mining areas is seen as a strategic move to attract international investors.
Countries with reliable infrastructure and strong government support are increasingly appealing to global investors.
By addressing key challenges such as access to electricity, Tanzania is positioning itself as a competitive player in the African mining industry.
Dr. Biteko also highlighted the government's long-term goal to integrate the mining sector with other economic sectors, as outlined in the 2009 Mining Policy.
"This approach aims to ensure that mining contributes effectively to national development and fosters sustainable growth. The government’s electricity initiatives are seen as critical to achieving this goal, as they will help create a more profitable and stable mining environment for investors" Dr. Biteko said.
Minister of Minerals, Anthony Mavunde, echoed Dr. Biteko’s sentiments, noting that the government has increased the ministry's budget to TZS 232 billion.
The increase will fund the establishment of modern laboratories for mineral research, enabling local miners to conduct studies within the country, rather than relying on foreign facilities.
Mavunde also announced that the government, under President Samia’s leadership, plans to purchase 15 new mining rigs, which will be distributed across the country to assist youth and women’s mining groups.
These initiatives are designed to enhance the capacity of small-scale miners and encourage innovation and investment in the sector.
"The mining sector’s contribution to Tanzania’s GDP has grown steadily, rising from 7.1% in 2017 to 9.0% today, with a target of 10% by 2025," he noted.
He expressed confidence that the sector would reach this goal, given the current indicators of growth. The ministry aims to contribute TZS 1 trillion to the Central Government Fund in the 2024/2025 fiscal year.
Geita Regional Commissioner, Martine Shigella, said that the investment in electricity and infrastructure has already begun to transform the region’s mining sector. He reported that Geita produces around 5,000 kilograms of gold annually, with TZS 2.2 trillion circulating within the local economy.
Shigella added that reliable electricity would further boost production and attract new investors to the region.
Vice President of Geita Gold Mining Company (GGM), Simon Shayo, commended the government’s efforts to integrate clean energy and modern technology into the mining sector.
He confirmed that GGM will continue to support these efforts, ensuring that Tanzania remains a leader in sustainable mining practices.
The 7th National Mining Technology Exhibition in Geita brought together over 800 participants, including stakeholders, investors, and international organizations.
The event served as a platform for exchanging knowledge, exploring business opportunities, and fostering partnerships within the mining industry.
As the government continues to make significant investments in infrastructure and clean energy, Tanzania is poised to become a leading mining destination in Africa, attracting investors from around the world seeking a stable and productive environment.