Tanzania’s push to increase local participation in the mining sector is beginning to deliver major economic benefits, with more than TZS5.5 trillion spent on locally sourced goods and services by mining companies operating in the country.
The funds, which previously largely benefited foreign suppliers, are now circulating within the domestic economy through Tanzanian-owned businesses, contractors and service providers, creating opportunities for entrepreneurs and supporting job creation.
Speaking during the Mining Conference held at the 50th Dar es Salaam International Trade Fair (Sabasaba) yesterday, Deputy Minister for Minerals Steven Kiruswa said the achievement reflects the impact of the government’s Local Content policy, which aims to ensure Tanzanians benefit more from the country’s mineral resources.
“Through effective implementation of Local Content requirements, billions of shillings that used to leave the country are now remaining within Tanzania and supporting local businesses,” Dr Kiruswa said.
He said the success has been driven by close cooperation between the Mining Commission and mining companies to ensure procurement opportunities are prioritised for locally registered companies with Tanzanian ownership.
The funds have been channelled into various areas, including engineering services, mine construction, infrastructure development, road works, fuel supply, catering, security services, employee transportation and the provision of workplace safety equipment.
Dr Kiruswa said the government will continue strengthening the capacity of local entrepreneurs so they can compete for larger contracts, including the supply of heavy mining equipment and specialised machinery.
He called on financial institutions and private sector players to increase support for local businesses through access to finance, technical skills and better business networks.
The move is part of wider government efforts to ensure the mining sector contributes more directly to national economic growth by expanding opportunities for Tanzanians across the mineral value chain.
Meanwhile, STAMICO Director General Venance Mwase said the corporation is supporting the government’s clean cooking energy agenda through the Rafiki Briquette project, which seeks to promote alternative energy solutions.
Representing the Geita Regional Commissioner, Mohamed Gombati praised the government’s efforts in promoting mineral value addition and creating employment opportunities for young Tanzanians through the mining value chain.
The growing contribution of local suppliers demonstrates how Tanzania’s mining sector is increasingly becoming a platform for expanding local industries, empowering entrepreneurs and ensuring mineral wealth delivers broader benefits to citizens.
