As Tanzania approaches 64 years of independence, the mining sector has evolved into a key pillar of the nation’s economic development.
From limited colonial-era extraction to a modern, regulated, and investment-friendly industry, mining has become central to the country’s growth story.
Before independence in 1961, mining was largely controlled by colonial powers and operated on a small scale.
After independence, the government prioritized building national systems to manage mineral resources and strengthen geological research.
Institutions like the Geological Survey and Mines Institute of Tanzania (GST) were established to support exploration and promote small-scale mining.
During the 1970s Ujamaa era, state-owned enterprises such as the National Mining Corporation (STAMICO) were created to ensure national ownership of mineral resources.
However, limited funding, skills, and technology slowed sector growth during this period.
Significant reforms began in the late 1980s and early 1990s when Tanzania opened the mining sector to private and international investors.
New laws encouraged large-scale gold extraction, positioning the country among Africa’s top producers.
While production increased, challenges such as low government revenue collection and social disputes emerged.
In recent years, the 2017 Mining Act (Cap. 123) and its regulations have strengthened oversight, transparency, and collaboration in the sector.
These reforms ensured government participation in large-scale projects and better control over raw mineral exports, providing a solid foundation for sustainable growth.
The impact is evident. Revenue collection increased from TZS 623.24 billion in 2021/2022 to TZS 753.18 billion in 2023/2024.
By June 2025, the Ministry of Minerals collected TZS 1.071 trillion, surpassing the annual target. Mineral exports continue to drive foreign exchange, with gold exports reaching USD 4.322 billion by September 2025, contributing over 56% of total export earnings.
Local companies supplied goods and services worth USD 3.3 billion, accounting for 92% of mining-related procurement.
The mining sector now contributes 10.1% to the national GDP and remains a cornerstone of Tanzania’s economy.
Beyond revenue, it generates employment, stimulates local businesses, and supports broader economic growth.
To ensure sustainable development, the government continues to implement strategies to add value to strategic and rare minerals before export, strengthen regulation, and maintain growth in production and exports. These efforts aim to secure the sector’s long-term role as a driver of national development.
