Tanzania moves to deepen local benefits from mining sector

By The Respondents Reporter

The Government is stepping up efforts to ensure Tanzanians capture a bigger share of the economic opportunities created by the country’s mining industry, with local businesses already securing 86 per cent of mining procurement spending.

Minister for Minerals Anthony Mavunde told the Parliamentary Standing Committee on Energy and Minerals in Dodoma yesterday that the Government was strengthening local content measures to expand opportunities for Tanzanians in employment, supply of goods and services, and mining-related businesses.

He said the Mining Commission had reserved 20 categories of goods and services for Tanzanian-owned companies, requiring them to be supplied by Tanzanians or companies that are 100 per cent locally owned.

The move is intended to ensure that mining investments generate wider economic benefits by linking local businesses to the industry's supply chains.

“We want Tanzanians to participate fully in the mining value chain and benefit from the opportunities created by investment in the sector,” Mr Mavunde said.

Government data shows that 20,421 jobs had been created in mines across the country by June 2026, with Tanzanians occupying 19,690 positions, equivalent to 94 per cent of total employment.

Procurement figures also show a significant share going to local companies. Mining firms spent Sh5.2 trillion on goods and services, with Tanzanian companies receiving Sh4.4 trillion, or 86 per cent.

Foreign companies accounted for Sh727.2 billion, equivalent to 14 per cent, of the total expenditure.

The figures point to growing participation of Tanzanian businesses in the mining supply chain, although the Government says local suppliers must continue improving their capacity to meet the quality and technical standards required by mining companies.

The Government is also seeking to ensure mining communities benefit from activities taking place in their areas.

Mr Mavunde said mining licence holders spent about Sh25.4 billion during the 2025/26 financial year on corporate social responsibility (CSR) projects implemented in councils surrounding mining areas.

The minister said the Government would continue enforcing laws requiring mining companies to procure goods and services available locally, while encouraging Tanzanian businesses to position themselves to meet industry demand.

He also announced progress under the Mining for a Brighter Tomorrow (MBT) programme, which aims to increase the participation of young people, women and people with special needs in the mining value chain.

Through the programme, areas with geological information have been identified for licensing to targeted groups.

So far, 273 mining licences have been issued to 183 groups, benefiting 2,550 people in various regions.

Mr Mavunde also directed mining officers across the country not to issue mining licences before establishing whether mining activities are already taking place in the proposed areas.

The measure is intended to prevent overlapping claims and disputes that can disrupt mining activities and affect people already operating in mining areas.

He said the ministry would continue working with the Parliamentary Committee to implement its recommendations and strengthen oversight of the sector.

For his part, the Vice-Chairperson of the Parliamentary Standing Committee on Energy and Minerals, Simon Songe, urged the Government to ensure Tanzanians participate throughout the mining value chain.

He said greater local participation should translate into more jobs, stronger local businesses and increased government revenues, allowing the country's mineral wealth to contribute more directly to national economic development.

The Government's latest measures signal a shift beyond simply increasing mineral production towards ensuring that mining creates stronger linkages with Tanzanian businesses, workers and communities.

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