The government has approved the allocation of 10 percent of revenue generated from the mining sector to finance advanced mineral exploration, a strategic move aimed at unlocking Tanzania’s untapped mineral potential and strengthening the sector’s contribution to economic growth.
Speaking in Parliament on Monday while presenting his ministry’s budget estimates for the 2026/27 financial year, the Minister for Minerals, Anthony Mavunde, said the decision marks a major step towards expanding geological knowledge and accelerating investment in the country’s mining industry.
The allocation will support high-resolution geological surveys, an advanced exploration method used to identify mineral-bearing formations and potential mining sites with greater accuracy.
Mr Mavunde said Tanzania has already achieved significant milestones in geological research, with geological mapping covering 97 percent of the country, geochemical surveys reaching 24 percent coverage and low-resolution airborne surveys completed nationwide since exploration activities began in the late 1970s.
Despite these achievements, he noted that only 16 percent of the country’s 945,000 square kilometres has undergone high-resolution surveys, leaving vast areas unexplored at the level required by modern mining standards.
He said advances in technology and the growing demand for critical minerals have increased the need for detailed geological data capable of guiding both public planning and private investment.
“The government has approved the allocation of 10 percent of mining revenue to strengthen advanced exploration activities. This will enable us to gain a deeper understanding of the country’s mineral resources and open new opportunities for investment,” Mr Mavunde told lawmakers.
The minister described the decision as a turning point for the sector, noting that reliable geological information remains one of the key factors influencing exploration and mining investment decisions.
Industry experts have long argued that limited geological data increases exploration risks and costs, particularly in frontier areas.
Expanding high-resolution surveys is therefore expected to improve investor confidence by providing more accurate information on mineral prospects.
According to Mr Mavunde, the additional funding will accelerate the identification of new mineral-rich areas, support the development of future mining projects and increase the sector’s contribution to government revenue, exports and employment.
The move comes as Tanzania seeks to position itself as a competitive destination for mining investment amid growing global demand for minerals used in industrial production, energy transition technologies and manufacturing.
With more than four-fifths of the country yet to undergo advanced exploration, the government expects the new funding framework to provide a long-term foundation for mineral discoveries that could shape the future growth of the industry.
The mining sector remains one of Tanzania’s leading foreign exchange earners and a key pillar of the national economy, with authorities increasingly focusing on value addition, investment promotion and improved resource management to maximise benefits from the country’s mineral wealth.
