The introduction of official mineral markets and benchmark pricing systems in Ruvuma Region is paying off, with authorities reporting a sharp decline in mineral smuggling, higher government revenue and improved earnings for small-scale miners.
Officials say the reforms have transformed mineral trading in the southern region by bringing greater transparency and competition into a sector that was previously dominated by informal dealings.
Songea and Tunduru now host the region’s two official mineral and gemstone markets, with the Tunduru market launched by President Samia Suluhu Hassan in September 2024 as part of wider government efforts to formalise the mining sector.
Ruvuma Resident Mines Officer, Engineer Alphonce Bikulamchi, said the markets have created a reliable trading environment where miners can access accurate benchmark prices and competitive buyers from both local and international markets.
Before the establishment of the markets, many miners were forced to sell minerals through informal channels, often at low prices and without proper oversight, a situation that encouraged smuggling and denied the government tax revenue.
“Today miners have access to transparent benchmark prices for their minerals. This has reduced fraud, strengthened trust in the market and ensured miners receive fair value for their products,” said Eng Bikulamchi.
He noted that increased competition among buyers has improved prices for miners while also encouraging more small-scale operators to participate in the formal economy.
The reforms are part of broader efforts by the government to strengthen oversight of Tanzania’s mining industry, which continues to play an increasingly important role in economic growth and foreign exchange earnings.
Authorities say they will continue improving the business environment in the sector through tighter market supervision and education programmes aimed at helping miners understand formal trading procedures and maximise the value of their minerals.
Mining stakeholders in the region believe the official markets are not only helping to reduce illicit trade but are also creating a more sustainable and organised mining economy capable of supporting livelihoods and regional development.
