Dodoma. Parliament has approved a TZS 174.9 billion budget for the Ministry of Minerals for the 2026/27 financial year, with the government targeting to collect Sh1.4 trillion in revenue from the sector.
Presenting the estimates on April 27, 2026, Minerals Minister Anthony Mavunde said the allocation will support the ministry and its institutions in sustaining growth and expanding geological exploration activities.
The approved budget includes TZS 71.5 billion (40.9 percent) for development projects and TZS 103.5 billion (59.1 percent) for recurrent expenditure. Of the recurrent budget, TZS 27.4 billion has been allocated for salaries, while TZS 76.1 billion will cover other operational costs.
Mr Mavunde said the mining sector’s contribution to Gross Domestic Product has continued to improve, rising from 9.1 percent in 2023 to 10.1 percent in 2024, and reaching an average of 11.9 percent in 2025.
Revenue collection has also shown strong growth. “Collections increased from TZS 753.2 billion in 2023/24 to Sh1.07 trillion in 2024/25. In the first nine months of 2025/26, we have already collected TZS 1.03 trillion, equivalent to 114.9 percent of the target,” he said.
The minister added that reforms in mineral trading infrastructure have contributed to improved transparency and competitiveness, with mineral markets increasing from 43 to 44 and buying centres rising from 114 to 118.
He outlined key priorities for the 2026/27 financial year, including strengthening the sector’s contribution to the economy, developing value chains for critical and strategic minerals, and promoting investment in value addition.
Other priorities include improving gemstone auctions, expanding investment in detailed geological surveys, formalising small-scale miners, and strengthening institutional capacity to enhance efficiency and productivity.
Deputy Minister for Minerals Steven Kiruswa said the government will intensify inspections in both small- and large-scale mines to boost production efficiency.
“We will continue to strengthen inspections across mining operations to ensure increased efficiency and compliance,” he said.
Dr Kiruswa also said the ministry is working on introducing a digital licensing system to streamline the issuance of mining licences and reduce conflicts of interest.
The government has attributed the sector’s performance to ongoing reforms and policy direction under President Samia Suluhu Hassan, with officials expressing confidence that the new budget will further accelerate growth and revenue generation.
