The Ministry of Minerals has requested a total of 174.98 billion shillings for the 2026/2027 financial year, aiming to strengthen the management of the mining sector and significantly increase its contribution to Tanzania’s national economy.
Presenting the ministry’s budget estimates in Parliament in Dodoma, Minister for Minerals Anthony Peter Mavunde said the funds will be critical in improving operational efficiency, enhancing supervision of mineral resources, and expanding revenue collection from the sector.
He told lawmakers that with proper implementation of the proposed budget, the ministry expects to achieve a revenue collection target of 1.406 trillion shillings from the mining sector in the coming financial year.
According to the budget breakdown, 71.51 billion shillings, equivalent to 40.87 percent of the total amount requested, has been allocated for development projects.
These funds will be used to support strategic initiatives aimed at improving mineral value addition, expanding exploration activities, and strengthening infrastructure that supports the mining industry.
Mavunde said these development interventions are designed to ensure that Tanzania benefits more from its mineral wealth through increased investment, processing, and value addition within the country.
He further explained that 103.47 billion shillings, representing 59.13 percent of the total budget, has been allocated for recurrent expenditure.
This portion will support day-to-day operations of the ministry and its institutions to ensure effective delivery of services across the sector.
Out of the recurrent expenditure, 27.36 billion shillings has been earmarked for staff salaries, while 76.11 billion shillings will be used for other operational costs, including administrative activities, monitoring, and regulatory functions.
The minister emphasized that the mining sector remains one of the key pillars of Tanzania’s economy, contributing significantly to government revenue, employment creation, and foreign exchange earnings. He said strengthening the sector’s management systems will help maximize these benefits.
He added that the government will continue to improve the investment climate in the mining industry by simplifying procedures, strengthening regulatory frameworks, and promoting transparency in mineral transactions. These efforts, he said, are intended to attract both local and foreign investors.
Mavunde also highlighted the importance of developing the mineral value chain, noting that increasing local processing and refining of minerals will create more jobs for Tanzanians and boost industrial growth.
He told Parliament that approval of the proposed budget will play a key role in accelerating sector reforms and ensuring more efficient utilization of Tanzania’s mineral resources for national development.
The minister assured lawmakers that the government is committed to ensuring that all funds allocated will be used efficiently, transparently, and with strict accountability. He said strong financial discipline and effective oversight will be central to implementation.
He further noted that improved performance in the mining sector will not only increase government revenue but also strengthen Tanzania’s position in the global mineral market.
With the proposed budget, the Ministry of Minerals is targeting a more structured, competitive, and investment-friendly mining sector that can deliver long-term economic benefits to the country.
