Tanzania Bets on Value Addition to Woo East African Mining Investors

Date: May 14, 2025

Tanzania is implementing comprehensive reforms in its mining sector to attract regional investors, particularly from Uganda and other East African nations. The government's strategy focuses on transforming its abundant mineral resources into catalysts for industrial growth and regional integration.

Emphasis on Local Value Addition

Central to these reforms is a stringent beneficiation policy mandating that all raw minerals be processed within Tanzania. Minister of Minerals Anthony Mavunde emphasized that medium- and large-scale mining licenses will only be granted to entities presenting clear plans for local value addition. This approach aims to ensure that the country benefits more substantially from its mineral wealth.

Targeting Strategic Minerals

The reform agenda targets over 40 critical and strategic minerals, including lithium, cobalt, nickel, graphite, and rare earth elements. By focusing on these resources, Tanzania positions itself as a key player in the global energy transition and seeks to attract investments that extend beyond extraction to include processing and manufacturing.

Enhancing Transparency and Oversight

To combat smuggling and enhance transparency, the government plans to introduce helmet-mounted surveillance cameras for inspectors in Mirerani, the site of the world's only tanzanite mines. Additionally, a real-time mineral oversight system linked to national databases is under development to monitor trade flows, environmental compliance, safety standards, and tax revenues.

Formalizing Small-Scale Mining

The reforms also aim to formalize small-scale mining operations, many of which involve women and youth. By integrating these miners into the formal economy, the government seeks to promote equitable revenue sharing and community development.

Through these initiatives, Tanzania aspires to create a more inclusive and sustainable mining sector that not only attracts foreign investment but also delivers tangible benefits to its citizens and the broader East African region.