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GEITA: Tanzania’s mining sector contributed TZS1.393 trillion to government coffers in the year to June 30, 2026, with small-scale miners accounting for about 40 percent of the contribution, Minister for Minerals Anthony Mavunde has said.
The figure highlights the growing fiscal importance of mining, as the government seeks to increase revenue while ensuring Tanzanian businesses capture a larger share of the money generated by the industry.
Mr Mavunde was speaking during Local Content Day at the ninth National Mineral Technology and Investment Exhibition at the Dkt Samia Suluhu Hassan grounds in Geita Municipality.
He said the sector had also continued to exceed its revenue collection targets in the 2026/27 financial year.
The ministry had set a target of collecting TZS351 billion in the first quarter, but had already collected TZS411 billion, he said.
“This shows how the mining sector continues to grow,” Mr Mavunde said.
Beyond government revenue, the minister said the mining industry offered a much larger opportunity for local businesses through procurement of goods and services.
According to him, large-scale mines operating in Tanzania spend about TZS5.1 trillion annually on goods and services.
The government now wants 90 percent of that spending to remain in Tanzania by increasing the participation of local companies in the mining supply chain.
The target could open a substantial market for Tanzanian businesses, particularly those capable of supplying equipment, construction materials, transport, food, accommodation and other services required by mining operations.
Mr Mavunde said the market was expected to expand further as 14 companies prepare to establish major mining projects in the country.
He also pointed to 28 graphite mining licences whose holders have been urged to move into production.
The expansion of mining projects is expected to increase demand for workers and suppliers. Mr Mavunde said companies involved in the projects had so far created 19,000 jobs, with Tanzanians accounting for 96 percent of the workforce.
He said the ministry wanted mining to become one of the country’s leading sources of employment.
However, officials at the event said increasing local participation would require more than employing Tanzanians.
Mining Commission chairperson Dr Janet Lekashingo said local companies needed to compete for procurement opportunities so that communities could benefit from the sector through business ownership and supply contracts.
“Local participation should not end with employment. Tanzanian companies should focus on tenders issued through competitive processes,” she said.
Geita Regional Commissioner Alexander Mnyeti commended Mr Mavunde for what he described as hard work and integrity in leading the minerals ministry.
Geita Urban MP Chacha Wambura, meanwhile, called for tighter monitoring of local-content requirements, particularly ownership changes involving companies previously classified as foreign-owned.
He raised concerns over cases where foreign companies may later appear as locally owned without sufficient transparency over how ownership changed.
“Alongside doing this, I ask you to continue following up firmly so that you can identify even those trying to deceive the system,” Mr Wambura said.
“You may find that today Company A was foreign-owned, but tomorrow you find it is locally owned. At times you wonder why we never saw them selling shares.”
The concerns come as the government pushes to ensure that the economic benefits of mining extend beyond tax and royalty collections to Tanzanian workers, businesses and communities.
With billions of shillings spent annually on goods and services by mining companies, the implementation of local-content rules could determine how much of that spending remains in the domestic economy.