Tanzania targets 90pc local procurement in mining industry

By The Respondents Reporter

The government has directed authorities to strengthen enforcement of mining regulations to ensure that at least 90 percent of goods and services used by mining companies are sourced from Tanzanian suppliers, as part of efforts to deepen local participation in the sector.

Minister for Minerals Anthony Mavunde issued the directive on Wednesday while opening the Fifth Local Content Implementation Forum in Mwanza, which brought together mining companies, local suppliers, investors, government institutions and industry stakeholders.

Mr Mavunde said stricter implementation of the Mining Act and its regulations would help ensure that Tanzanians benefit more from the expansion of the mining industry through increased business opportunities and employment.

"The government's objective is to see 90 percent of goods and services used by mines being produced and supplied by Tanzanians. Achieving this will require effective enforcement of the law and greater preparedness among local businesses," he said.

He urged Tanzanian suppliers to work together to improve their capacity, competitiveness and the quality of their products and services as the country prepares for new mining investments expected to expand demand for locally supplied goods and services.

The minister also reminded mining investors to comply with the country's legal and regulatory framework, saying adherence to the law remains essential for sustaining a favourable investment environment.

According to Mr Mavunde, annual procurement of goods and services by the mining industry has reached TZS 5.1 trillion, creating significant opportunities for domestic manufacturers and service providers.

He said the sector currently supports 20,421 formal jobs, with 16,695 positions held by Tanzanians, noting that local professionals are increasingly occupying senior management roles that were previously dominated by expatriates.

The minister said reforms in the mining sector have also led to the establishment of 44 mineral markets and 117 mineral buying centres, contributing to an increase in government revenue from TZS 161 billion in the 2015/16 financial year to TZS 1.393 trillion in 2025/26.

He added that the country's official gold reserve programme, launched through the Bank of Tanzania in October 2024, has enabled Tanzania to accumulate 28 tonnes of gold reserves, placing it among Africa's leading holders of official gold reserves.

Mr Mavunde said the mining sector's contribution to the economy has continued to grow, accounting for 10.1 percent of Tanzania's Gross Domestic Product (GDP).

Permanent Secretary in the Ministry of Minerals Yahya Samamba said the government would continue improving the investment climate in line with the National Development Vision 2050 while encouraging local suppliers to uphold professionalism, integrity and internationally accepted standards.

Speaking on behalf of Mwanza Regional Commissioner Said Mtanda, Ilemela District Commissioner Amir Mkalipa said ongoing investment in the region had facilitated the development of the Sotta Mining gold project, which is expected to create about 1,500 jobs once production begins.

Mining Commission Chairperson Janet Lekashingo said implementation of local content requirements has gathered pace, with the number of local content plans submitted by mining companies rising from 51 in 2018 to 1,312 in 2025, reflecting increased participation by Tanzanian businesses in the mining value chain.

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