The government is set to scrutinise the ownership of companies supplying goods and services to Tanzania’s mining industry amid concerns that some foreign firms may be using local partnerships to meet ownership requirements while retaining control of the businesses.
Minister for Minerals Anthony Mavunde said yesterday that the exercise would seek to establish the actual ownership of companies operating in the mining supply chain and ensure Tanzanians genuinely benefit from opportunities created by the sector.
He said the Ministry of Minerals, through the Mining Commission and in collaboration with the Business Registrations and Licensing Agency (Brela) and Tanzania Revenue Authority (TRA), would examine company ownership structures and transactions.
“We have discovered that some foreign companies have entered partnerships with Tanzanians who are required to hold 20 per cent of shares on paper, but in reality the companies are entirely owned by foreigners,” Mr Mavunde said.
He was speaking in Geita during the Tanzanian Participation in the Mining Sector Day, held as part of the ninth National Mining Technology and Investment Exhibition.
The minister said the government would not only examine the names appearing on company registration documents but also establish who actually owns and controls the businesses.
The move comes as the government seeks to increase Tanzanian participation in an industry that generates billions of shillings in revenue and creates demand for a wide range of goods and services.
Mr Mavunde urged Tanzanians to prepare for increased opportunities in the mining supply chain, saying 14 companies were expected to begin mining operations while 28 other mining licences were at various stages of issuance.
He said the expansion would create additional demand for local suppliers, including companies providing equipment, transport, construction, catering and other services.
“Local service providers need to prepare and, where possible, join forces so they can build the capacity required to serve large mining companies,” he said.
The government is also seeking to increase the amount of mining-related spending retained within the domestic economy.
Mr Mavunde said the government wanted 90 per cent of mining companies’ procurement, estimated at about TZS5.1 trillion annually, to be undertaken by Tanzanians.
If achieved, the target would make local procurement one of the major channels through which mining contributes to businesses and employment beyond mine sites.
The minister also announced that the government had begun implementing a plan to allocate 10 per cent of mineral revenue collections to mineral exploration.
He said the Mining Commission collected TZS411 billion between July and September 2026, exceeding the TZS351 billion target by 17 per cent.
Of the amount collected, TZS40 billion, equivalent to 10 per cent, will be directed towards mineral exploration, he said.
Mr Mavunde said the government had also allocated the former Buzwagi mine area for the development of industries that will manufacture products needed by mining companies.
The initiative is intended to encourage domestic production and allow Tanzanian businesses to participate in more stages of the mining value chain rather than mainly supplying basic services.
The minister also highlighted the contribution of small-scale miners, saying they account for about 40 per cent of the country’s mining sector.
He said the government collected TZS1.393 trillion from the mining sector during the 2025/26 financial year.
Implementation of local participation regulations had also contributed to the creation of 19,000 formal jobs, while foreign nationals accounted for four per cent of employment in the sector, Mr Mavunde said.
For businesses seeking to enter the mining supply chain, however, the minister's call points to a need for greater capacity, compliance and financial strength as mining activity expands.
Geita Regional Commissioner Alexander Mnyeti urged Tanzanians to focus on developing businesses that can take advantage of available opportunities instead of merely complaining about access to the sector.
Geita MP Chacha Wambura called on the Ministry of Minerals to strengthen enforcement of the local participation regulations while continuing to address challenges facing small-scale miners.
Federation of Miners Associations of Tanzania (Femata) chairman John Bina commended the government for addressing challenges facing small-scale miners and improving mining laws and regulations.
Earlier, Mining Commission chairperson Dr Janet Lekashingo said the meeting brought together mining licence holders and service providers to exchange experience, share knowledge, develop cooperation strategies and identify ways of addressing challenges facing stakeholders.
The Tanzanian Participation in the Mining Sector Day was held at the Dkt Samia Suluhu Hassan grounds in Bomba Mbili, Geita, as part of the ninth National Mining Technology and Investment Exhibition.