Tanzania urges Africa to prioritize value addition in mining sector

 


By The Respondents Reporter

Tanzania has urged African nations to fast-track reforms in the mining sector by prioritising value addition, warning that continued export of raw minerals is limiting the continent’s economic potential.

Closing the Kenya Mining Investment Conference & Expo 2026 in Nairobi, the Minister for Minerals, Anthony Mavunde, said Africa must shift from being a supplier of raw materials to a competitive industrial player in global markets.

Africa, he said, cannot sustain a model where it exports unprocessed resources and imports finished goods at higher costs, arguing that building domestic processing capacity is essential for long-term economic transformation.

The minister pointed to mineral beneficiation as a strategic pathway to industrialisation, noting that countries that invest in refining and processing stand to gain more in terms of revenue, jobs and technological advancement.

He said the transition will require heavy investment in modern infrastructure, reliable energy systems and policy frameworks that are attractive to investors. 

Without these fundamentals, he cautioned, efforts to industrialise the mining sector will remain slow.

Mavunde emphasised that beyond capital and technology, investor confidence is driven by stable and predictable policies. 

He called on governments to ensure transparency in licensing, consistency in regulations and tax systems that allow investors to plan long term.

He further challenged African governments to reposition themselves as active partners in the sector’s growth by working closely with the private sector. 

This, he explained, includes sharing risks in large-scale projects, unlocking financing opportunities and accelerating infrastructure development.

On regional integration, he argued that Africa’s fragmented markets weaken its competitiveness, urging countries to collaborate in building shared mineral processing hubs and expanding intra-African trade.

He noted that stronger regional cooperation would enable countries to pool resources, reduce costs and create larger, more attractive markets for investment.

The minister also highlighted the need to balance economic gains with social responsibility, insisting that mining development must deliver tangible benefits to citizens through employment, environmental protection and local economic growth.

With global demand for critical minerals rising rapidly, he said Africa has a narrow but significant window to position itself strategically in global supply chains.

On his part, Kenya’s Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Hassan Ali Joho, said his country is keen to draw lessons from Tanzania’s experience in managing the sector.

Kenya, he said, is targeting to raise the mining sector’s contribution to 10 percent of Gross Domestic Product (GDP) by 2030, reflecting renewed ambition to expand the industry’s role in the economy.

The two-day conference brought together policymakers, investors and industry players from across Africa and beyond to examine opportunities and challenges in the mining sector, with Tanzania emerging as one of the standout voices advocating for a value-driven approach to mineral development.

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