In a major step to strengthen the country’s salt industry, the government has unveiled new policy measures aimed at empowering small-scale producers, cutting production costs, and expanding market access.
Key among the reforms is a reduction in the annual rent fee for small-scale salt mining licenses from TZS 45,000 to TZS 20,000 per hectare designed to lower operational costs and enhance the quality and competitiveness of locally produced salt.
Minister for Minerals, Hon. Anthony Mavunde, made the announcement in Dar es Salaam while closing a stakeholder meeting convened by the Tanzania Salt Producers Association (TASPA).
“These changes reflect President Samia Suluhu Hassan’s strong commitment to inclusive economic growth,” said Mavunde.
“She has directed us to respond directly to the challenges facing local salt producers and ensure they benefit more from their work.”he added
The minister emphasized that under President Samia’s leadership, the mining sector—especially small-scale operations has received unprecedented attention and reforms that aim to increase both productivity and profitability.
In a further boost to producers, the government has introduced a 2 percent withholding tax on sales of raw salt for license holders, replacing the previously burdensome income tax estimates that were difficult to manage for small-scale businesses.
“Producers will now be taxed based on actual sales, which is more transparent, fair, and predictable,” said Mavunde.
To protect local production, the government is also stepping up controls on the importation of salt, a move that has already resulted in improved prices for locally mined salt.
“These efforts are translating into real economic benefits for Tanzanian producers,” the minister added.
On infrastructure, Mavunde announced that the state-run mining corporation, STAMICO, is in the final phase of completing a modern salt processing plant.
The facility is expected to begin operations by the end of August and will serve as a game-changer for small producers by providing them with access to advanced processing and broader markets.
“The completion of this factory will open up more opportunities for producers to sell higher-quality salt and reach more buyers,” said Mavunde.
TASPA Chairperson Hawa Ghasia lauded the government for taking concrete steps to resolve longstanding challenges in the sector. She noted that the policy changes have already improved salt prices and increased the income of local producers.
“The government’s actions are empowering local businesses and proving that smart policy can make a real difference on the ground,” said Ghasia. “We thank President Samia for her visionary leadership.”
The renewed focus on domestic salt production is part of a broader agenda to build value chains across the country’s extractive industries, increase self-reliance, and create jobs.
With global demand for salt rising and new opportunities emerging in the food, industrial, and health sectors, the government sees salt as a strategic resource for national development.
As Tanzania continues its push to industrialize and expand value-added production, these reforms are expected to turn the tide for hundreds of small-scale salt producers, offering them better prospects for growth and long-term sustainability.