Tanzania’s mining sector is continuing to strengthen its role as a key driver of economic growth, attracting high levels of foreign investment while benefiting from rising global gold prices, according to government reports.
The sector has emerged as one of the leading destinations for Foreign Direct Investment (FDI), accounting for about three-quarters of all investment in major productive sectors of the economy.
This growth reflects increasing investor confidence in Tanzania’s mineral resources and stable investment environment.
Figures from the Tanzania Investment Report 2025 show that total investment in the mining sector rose to USD 9.79 billion in 2024, up from USD 9.15 billion in 2023 and USD 8.64 billion in 2022.
The steady increase highlights continued expansion of mining projects and reinvestment by existing companies operating in the country.
Presenting the Ministry of Minerals budget estimates for the 2026/27 financial year in Parliament, Minister for Minerals Anthony Mavunde said government reforms and improved investment conditions have played a major role in attracting investors and encouraging expansion of mining operations.
He said the government has continued to strengthen the business environment through improved licensing systems, policy stability, and support for both large-scale and small-scale miners, enabling the sector to grow and create more economic opportunities for citizens.
According to him, many investors are not only entering the sector but are also expanding their projects using profits generated locally, a sign of growing confidence in Tanzania’s mining industry.
The expansion of mining activities has contributed significantly to job creation across the country.
Thousands of Tanzanians are now employed directly in mines, while many more benefit indirectly through supply chains such as transport, construction, security, catering, and equipment services.
In addition to employment, the sector has increased government revenue and foreign exchange earnings, helping to strengthen the national economy and support public development programmes.
One of the key drivers of recent growth is the sharp increase in global gold prices. Between July 2025 and March 2026, the average price of gold on the world market rose to USD 4,190.47 per ounce, compared to USD 2,655.80 in the same period the previous year.
This rise has significantly boosted earnings for gold producers in Tanzania, improving profitability and encouraging further investment in exploration and production.
Gold remains Tanzania’s most important mineral export and a major source of foreign currency, making it a critical pillar of the country’s economic stability.
However, while gold has performed strongly, the global diamond market has experienced a decline. The average price of diamonds fell to USD 159.84 per carat, down from USD 168.95 per carat in the previous year, representing a drop of 5.39 percent.
This decline has been linked to increased production of synthetic diamonds, which are widely used in major markets such as China and the United States.
These lab-made alternatives are more affordable and are affecting demand for natural diamonds.
Despite this challenge, the overall mining sector in Tanzania remains strong, supported by other valuable minerals and growing investment in modern mining technologies.
The government has continued to encourage value addition in the sector so that minerals are processed locally, increasing their value and creating more jobs for Tanzanians.
Efforts are also being made to support small-scale miners with training, access to finance, and modern equipment.
Officials say the mining sector is also benefiting from improved infrastructure, including better roads, reliable electricity supply, and designated mining zones that support large-scale industrial operations.
The government has reaffirmed its commitment to ensuring that revenues from the mining sector are well managed and directed towards key development areas such as education, healthcare, water supply, and infrastructure.
With continued investment growth, rising gold prices, and supportive government policies, the mining sector is expected to remain one of the strongest pillars of Tanzania’s economic development, creating more opportunities for citizens and contributing to long-term national prosperity.
