Mining companies in Tanzania have sharply increased their purchase of domestic goods and services between 2018 and 2024, while spending on foreign suppliers has declined, according to data from the Ministry of Minerals.
Domestic procurement rose from 1.85 trillion Tanzanian shillings (TZS) in 2018 to 4.41 trillion TZS in 2024, more than doubling over the six-year period.
By contrast, foreign procurement fell from 1.16 trillion TZS in 2018 to a low of 0.39 trillion TZS in 2021 and 2022, before a slight rebound to 0.59 trillion TZS in 2024.
The gap between domestic and foreign spending has widened significantly.
In 2018, domestic procurement was roughly 1.6 times higher than foreign purchases.
By 2024, domestic spending is nearly 7.5 times greater, reflecting stronger compliance with Tanzania’s Local Content regulations, which require mining companies to prioritise Tanzanian goods and services.
Year-on-year trends show steady growth in domestic procurement, particularly from 2021 onwards, when spending accelerated from 1.75 trillion TZS to 4.41 trillion TZS, suggesting that enforcement of local sourcing policies has intensified.
The shift toward domestic suppliers indicates that more mining revenue is being retained within Tanzania, supporting local businesses and job creation, while reducing reliance on imported goods and services for mining operations.
Overall, the figures demonstrate that Tanzania’s Local Content policies are reshaping the mining supply chain, keeping a larger share of the sector’s economic benefits inside the country.