The government is preparing a series of reforms aimed at transforming Tanzania’s small-scale mining industry, with a focus on improving access to finance, modern technology and geological information to increase employment, reduce poverty and accelerate economic growth.
The reforms follow the submission of a report by a team of experts appointed to advise the Ministry of Minerals on strategies for economically empowering small-scale miners, who remain a key pillar of the country’s mining sector.
Receiving the recommendations in Dar es Salaam on Friday, the Minister of State in the President’s Office for Planning and Investment, Prof. Kitila Mkumbo, said the proposals align with the government’s broader vision of creating jobs, expanding access to capital and lifting more Tanzanians out of poverty.
He said President Samia Suluhu Hassan has directed that national development initiatives should address three key challenges facing citizens: limited access to capital, unemployment and poverty.
According to Prof. Mkumbo, strengthening small-scale mining operations through better financing and technology will not only raise productivity but also create more employment opportunities and improve household incomes.
“Providing miners with access to capital and modern technology is one of the most effective ways of increasing production, creating jobs and fighting poverty,” he said.
The minister noted that despite the significant contribution of mining activities to local economies, poverty levels remain high in some mineral-rich regions.
He cited Geita Region, Tanzania’s leading gold-producing area, where poverty remains a challenge despite extensive mining activities.
He described the mining sector as one of the strategic industries expected to drive Tanzania’s long-term economic transformation under Vision 2050.
Minister for Minerals Anthony Mavunde said the government formed the expert committee after recognising the growing contribution of small-scale miners to the national economy despite persistent challenges, including limited access to finance, technology and formal financial services.
He said small-scale miners currently contribute about 40 percent of the government’s mining revenue collections, underscoring their importance to the sector.
The minister pointed to the sector’s remarkable growth over the past decade. Mining revenue collections, he said, increased from Sh161 billion in the 2015/16 financial year to Sh1.107 trillion in 2024/25 following reforms that included amendments to mining laws, the establishment of mineral markets and stronger controls against illegal mineral trading.
As of June 13, 2026, government revenue from the sector had already reached Sh1.3 trillion, he added.
Mr Mavunde said the government’s goal is to help small-scale miners expand their operations and gradually grow into medium-sized and eventually large-scale mining enterprises.
Among the measures already underway is the establishment of a Credit Guarantee Corporation, which is expected to help miners access loans from commercial banks and other financial institutions by reducing lending risks.
Presenting the committee’s findings, chairman Dr Victor Tesha proposed the creation of a Tanzania Mining Fund that would finance viable mining projects, support the acquisition of equipment and machinery, and fund geological exploration and research.
He said the proposed fund would help address one of the sector’s biggest challenges limited access to reliable geological information while enabling miners to invest in more efficient and safer mining technologies.
Dr Tesha added that once the fund becomes established, the government could consider creating a specialised Miners’ Bank to provide financial services tailored specifically to the needs of the mining industry.
He also recommended that future financing programmes prioritise the purchase of machinery and technology rather than cash disbursements, arguing that such an approach would improve productivity, efficiency and safety in mining operations.
The president of the Federation of Miners Associations of Tanzania (FEMATA), Mr John Bina, welcomed the report, describing it as evidence that the government is listening to concerns raised by small-scale miners.
He also commended the decision to allocate 10 percent of mining revenues to geological research, saying the move would strengthen mineral exploration and help unlock new opportunities for miners across the country.
If implemented, the recommendations could mark a significant shift in the development of Tanzania’s small-scale mining industry, a subsector that employs thousands of people and plays an increasingly important role in the country’s economic growth.
