Tanzania’s mining sector has attracted investment worth TZS 9 trillion over the past four years, as the government seeks to position the country as a leading destination for mining investment in Africa while increasing local participation in the industry.
Minister for Minerals Anthony Mavunde said the investment underscores growing confidence in Tanzania’s mineral potential and the government’s efforts to improve the investment environment.
He made the remarks on August 15, 2026, in Morogoro during the signing of a partnership agreement between the government and China’s Henan Yudi Mining Company for the development of a graphite project in the region.
Mr Mavunde said the government had so far signed 14 framework agreements with investors, describing the latest deal as part of efforts to attract capital into strategic minerals and increase value addition within the country.
Under the agreement, Henan Yudi Mining will invest about US$100 million, equivalent to TZS 265 billion, in the Morogoro graphite project.
The project has confirmed mineral deposits estimated at 104.28 million tonnes and is expected to produce up to 50,000 tonnes of graphite annually once it reaches full production.
The company is also expected to establish processing capacity of up to one million tonnes annually, while more than 600 Tanzanians are projected to secure direct employment.
Beyond direct jobs, the project is expected to create opportunities for local businesses through the supply of goods and services, transport, construction and other activities linked to the mining value chain.
Mr Mavunde said the government was changing its approach to mining by moving beyond the role of a host country to becoming an active participant in the value generated from mineral resources.
Under the project agreement, the government will hold a 17 per cent stake, giving it a direct interest in the project's operations and returns.
“We are strengthening our position in the mining sector from simply hosting mining activities to participating in the value created from our mineral resources,” Mr Mavunde said.
He said graphite was a strategic mineral because of its growing application in modern technologies, particularly in the manufacture of battery anodes.
The minister said the project therefore had the potential to contribute to Tanzania’s ambition of securing a greater role in the global graphite and battery value chain.
Morogoro District Commissioner Mussa Kilakala said the agreement would open up new economic opportunities for residents while creating employment and supporting increased mineral production.
He said the project was expected to contribute to the development of the mining sector and the wider economy through increased business activity and local participation.
Chinese Ambassador to Tanzania Chen Mingjian commended the government and Henan Yudi Mining for completing the negotiations, saying the project would strengthen commercial ties between Tanzania and China.
Ambassador Chen said China was among the leading sources of foreign direct investment in Tanzania, adding that the graphite project would broaden economic cooperation between the two countries.
He said the investment would create employment and business opportunities in Morogoro while contributing to Tanzania’s wider economic development.
The project comes at a time when Tanzania is seeking to attract investment into strategic minerals, promote local processing and ensure that more value is retained within the country.
For citizens, the key measure of the investment will be how effectively it translates into jobs, local procurement, skills development, government revenues and opportunities for Tanzanian businesses across the mining value chain.
