African countries should use more of their own revenue to finance mineral exploration and processing instead of relying heavily on foreign aid, Tanzania’s Minister for Minerals, Anthony Mavunde, has said, as the continent seeks to retain more value from its natural resources.
Mr Mavunde said greater domestic financing would help African countries identify new mineral deposits, develop processing industries, create jobs and strengthen their control over the economic benefits generated by mining.
He made the remarks on October 20, 2026, while chairing a ministerial session at Mining in Motion 2026 in Accra, Ghana, where ministers discussed financing mineral development from exploration to refining.
The discussions focused on how African and international financial institutions, governments and private investors could mobilise capital across the mineral value chain, particularly at a time when African countries are seeking to move beyond exporting raw minerals.
Using Tanzania as an example, Mr Mavunde cited the government's decision to allocate 10 per cent of revenue collected from the mining sector to detailed geological exploration, describing it as a step towards reducing dependence on donor funding.
“The political will demonstrated by President Samia Suluhu Hassan to allocate 10 per cent of revenue from the mining sector to detailed exploration is an important step towards reducing dependence on donor funding and enabling Tanzania to finance research into its mineral resources using domestic revenue,” he said.
The minister said Tanzania had considerable room to expand exploration, noting that only about 16 per cent of the country's land area had undergone detailed geological surveys.
The limited coverage points to the potential for further exploration, although identifying deposits alone will not guarantee that they can be developed commercially. Sustained investment, reliable geological data and the infrastructure needed to support mining projects will also be essential.
For Tanzania, using mining revenue to finance exploration could help establish a stronger pipeline of mineral projects and improve knowledge of the country's resource potential.
The impact, however, will depend on how effectively the funds are deployed and whether exploration leads to viable discoveries.
Mr Mavunde said financing should not stop at exploration and extraction but should extend to mineral processing and refining, where countries can capture more value before minerals reach export markets.
Without sufficient domestic processing capacity, mineral-producing countries risk missing opportunities to generate additional income, develop industrial skills and create jobs linked to higher-value products.
Investment in processing and refining facilities could support manufacturing, expand demand for local suppliers and increase earnings from mineral products.
Such projects, however, require substantial capital, reliable energy supplies, transport infrastructure and access to markets.
Mr Mavunde also pointed to Tanzania's local content framework as a way of ensuring that mining investment creates opportunities for domestic businesses.
The framework seeks to increase the participation of Tanzanian companies in supplying goods and services to mining operations.
The minister said strengthening local production of mining equipment and other supplies would help businesses capture a larger share of spending generated by the sector.
For local companies, the opportunity lies in moving beyond supplying basic services to developing the technical capacity and manufacturing capabilities needed to serve mining operations competitively.
The ministerial session also examined public-private partnerships, innovative financing arrangements and infrastructure investment as ways to mobilise capital for mineral development.
Regional cooperation and opportunities under the African Continental Free Trade Area (AfCFTA) were highlighted as potential avenues for expanding markets and linking mineral value chains across African countries.
A coordinated regional approach could help African economies attract investment into processing industries, share infrastructure and strengthen their bargaining position when negotiating with international investors.
Ghana's Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, called for greater cooperation among African countries to address financing shortages, infrastructure gaps and energy constraints affecting the mining industry.
He said countries needed a common strategy to strengthen their position in investment negotiations, develop mineral processing industries and safeguard the interests of communities living around mining areas.
The debate over mineral financing reflects a wider challenge facing resource-rich African countries: translating mineral wealth into broader economic development rather than relying primarily on the export of unprocessed commodities.
For Tanzania, the proposed allocation for geological exploration offers a domestic financing approach, but its long-term value will depend on measurable results, including expanded exploration coverage, commercially viable discoveries and investment in local processing.
The wider test for African governments will be whether increased financing translates into stronger domestic industries, more employment opportunities and greater economic benefits for citizens in mining areas and beyond.