Tanzania’s mining sector has undergone a major transformation in recent years following the establishment of mineral markets across the country, a move that has improved transparency, boosted government revenues and opened new opportunities for small-scale miners and traders.
Before 2019, the trade in gold and gemstones in Tanzania was largely informal, particularly among small-scale miners and mineral dealers. Most transactions took place without official trading centres, making it difficult to regulate the sector effectively.
This situation created several challenges. There was little transparency in pricing, frequent fraud in measuring and assessing the quality of minerals, and cases of fake gold entering the market. Mineral smuggling was also common, causing losses for miners and traders while depriving the government of important revenue.
Major reforms began in 2019 following amendments to the Mining Act of 2017. As part of the reforms, the government established the first mineral market in Geita, followed shortly by another in Chunya. These markets laid the foundation for a more organised and transparent system of mineral trading.
Since then, the number of mineral markets has expanded significantly. Tanzania now has 44 mineral markets and 120 mineral buying centres operating across the country.
These facilities provide miners and traders with secure places to sell their minerals while accessing reliable price information.
The markets have also helped protect miners from fraud and ensured that the government collects the appropriate taxes and fees from mineral transactions.
The introduction of mineral markets has encouraged more Tanzanians to participate in the mining economy, particularly in small-scale mining activities. Improved systems, clear legal procedures and greater transparency have strengthened confidence in the sector.
Tanzania’s approach has also attracted interest from other African countries seeking to learn from the model. Delegations from Zambia, Malawi, Burundi, Uganda, Kenya and the Democratic Republic of Congo have visited the country to study how the system works. Recently, a delegation from Burkina Faso also travelled to Tanzania for the same purpose.
Statistics illustrate the growing success of the mineral market system. In the 2018/19 financial year, mineral sales conducted through the markets reached Sh8 billion annually, revenue that was previously largely lost due to informal trade.
By the 2021/22 financial year, government revenue collected through the markets alone had increased to Sh264.09 billion. The growth has continued steadily, with mineral trade worth Sh2.095 trillion recorded in the 2022/23 financial year and Sh1.926 trillion in the 2023/24 financial year.
These figures show the increasing role of mineral markets in strengthening transparency and revenue collection in the sector.
The impact of the markets is also visible in major mining areas such as Chunya. According to Chunya Resident Mining Officer Laurent Mayalla, the introduction of mineral markets has significantly increased mining activities in the region.
Gold production in Chunya has risen sharply, reaching about 300 kilograms per month compared to just five kilograms before the establishment of mineral markets. The expansion of mining activities has also stimulated the growth of other economic sectors in the area.
Revenue collected from the mining sector through taxes and various levies is used by the government to fund social services and development projects across the country.
As a result, minerals have become an important pillar of Tanzania’s economy, contributing to national development while supporting the livelihoods of thousands of people involved in the sector.
The benefits of mineral markets are also being felt at the local government level. Many local authorities are investing in market infrastructure after witnessing the positive impact on employment and economic activity.
The markets have created job opportunities for many young people involved in mineral trading, registration services and other related activities. In many markets, young workers help register minerals brought by miners and traders before they are sold.
This process reflects the development of a complete value chain that links miners, traders, youth and government institutions.
Overall, mineral markets have transformed the mining sector from an informal and loosely regulated trade into a more transparent and organised system closely monitored by the government.
The reforms demonstrate how policy changes and improved systems can strengthen the mining sector while ensuring that the country’s natural resources contribute more effectively to economic growth and development.
As the sector continues to expand, mineral markets are increasingly proving that Tanzania’s mineral resources are not only a source of revenue but also a platform for opportunity, employment and shared prosperity.
