Tanzania eyes bigger share in TZS 3.1 trillion mining economy

 

By Alfred Zacharia

Dar es Salaam. In a significant move aimed at empowering Tanzanians to benefit more equitably from the mining economy, the Minister for Minerals, Mr. Anthony Mavunde, is expected to inaugurate the Committee of the Tanzania Mining Suppliers Association (TAMISA) on May 16, 2025, in Dar es Salaam.

The inauguration will coincide with a national forum bringing together Tanzanians engaged in the mining sector. 

According to TAMISA’s Chairperson for Marketing and Communications, Dr. Sebastian Ndege, the two-part event is not only a strategic milestone for the association but also a wake-up call for local stakeholders to seize opportunities in the sector.

“We Tanzanians must recognize that the minerals belong to us, and we have every reason to be actively involved in the mining economy,” said Dr. Ndege at a press briefing today in Dar es Salaam. “Our government, through Hon. Mavunde, has consistently emphasized the importance of increasing Tanzanian participation in this key sector.”

The mining sector has long been dominated by foreign suppliers and service providers, despite the country’s considerable mineral wealth. 

According to TAMISA Chairperson Mr. Peter Kumalilwa, the country’s five major mines collectively spend approximately TZS 3.1 trillion annually on procurement. 

Alarmingly, only about 10 percent of this expenditure benefits Tanzanians.

“That is too little,” said Mr. Kumalilwa. “Our goal is to change that. We want to see Tanzanians capturing at least 30 percent of this procurement value through participation in supply chains, manufacturing, and service provision.”

This ambition is underpinned by Tanzania’s local content regulations, which are designed to boost national participation in extractive industries. However, the enforcement and practical realization of these regulations remain a challenge, often due to limited local capacity and market access.

TAMISA, established in September 2024 by Minister Mavunde, was formed with a vision to address these gaps. 

Its mission includes advocating for the rights of mining sector suppliers, enhancing business facilitation, promoting research and technological development, and building the capacity of local entrepreneurs to meet global mining standards.

Kumalilwa emphasized the importance of building local industrial capacity, particularly through the establishment of mineral-related factories that can offer value-added services and products to the industry.

“We have heard too many complaints about foreigners, particularly the Chinese, dominating supply contracts. But we must move beyond complaints,” said Kumalilwa. “TAMISA is focusing on empowering Tanzanians so they can truly participate in and benefit from the mining economy.”

The upcoming forum is expected to serve as a platform for dialogue between the government, mining companies, and local businesses. 

Key discussions will center on how Tanzanians can expand their footprint in mining procurement and services, including logistics, equipment supply, safety gear, catering, and more advanced sectors like engineering and mineral beneficiation.

Analysts believe the event could mark a turning point in how local suppliers are positioned in the mining value chain. With Tanzania projected to continue experiencing growth in its extractive industries, especially in gold, graphite, and rare earth minerals, a robust and locally anchored supply ecosystem is viewed as crucial for inclusive economic development.

The initiative also aligns with broader government efforts under President Samia Suluhu Hassan to promote economic empowerment and industrialization. Through various reforms, the government has sought to link the mining sector more closely with national development priorities.

As stakeholders prepare for the May 16 event, the expectations are high. The spotlight is now on how effectively TAMISA and the Ministry of Minerals can drive the transformation of the supply side of Tanzania’s mining economy—turning policy into practice and aspiration into tangible benefit for Tanzanian citizens.

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