DODOMA, Tanzania: The mining sector is delivering stronger-than-expected fiscal returns, underpinned by regulatory reforms and expanded processing capacity that authorities say are improving transparency and long-term investment prospects.
The Ministry of Minerals collected 311.8 billion shillings ($122 million) in revenue between November 2025 and January 25, 2026, exceeding its target by 11% and keeping it on track to meet the 2025/26 annual goal of 1.2 trillion shillings (about $468 million), Minerals Minister Anthony Mavunde said.
The performance reflects tighter oversight of mineral licensing, enhanced production monitoring, and tougher action against smuggling, measures credited with reducing revenue leakages and strengthening compliance across the mining value chain, Mavunde told reporters in Dodoma.
For investors, officials say the reforms are translating into a more predictable operating environment. Mining’s contribution to gross domestic product has risen from 10.1% in 2024 to around 12%, highlighting the sector’s growing economic weight under President Samia Suluhu Hassan’s pro-investment agenda.
The government is finalising a Five-Year Mineral Value Addition Strategy (2026/27–2030/31) aimed at deepening downstream processing and expanding domestic beneficiation.
Six gold refineries are already operational nationwide, alongside four processing facilities for tin, nickel, and graphite, while Dodoma has emerged as a new minerals processing hub with nine value-addition plants.
A near-term catalyst is the expected commissioning of the first nickel and copper processing plant in Bahi District, Dodoma, which officials say will support industrial expansion and create opportunities across battery minerals and base metals supply chains.
Other projects under development include a 33 billion-shilling ($13 million) Gemological Centre in Arusha, now 10% complete, and a 4 billion-shilling ($1.6 million) salt processing plant in Lindi Region, scheduled to begin operations next month.
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Local participation remains a priority, with 12,130 mining licences issued during the period, above the annual target, and non-compliant licences reallocated to small-scale miners, women, and youth.
Amended local content regulations now reserve 20 categories of goods and services for locally owned firms, strengthening domestic supply chains while providing clarity for foreign investors.
Between July and December 2025, mineral trading valued at 3.1 trillion shillings ($1.2 billion) was conducted through 44 markets and 117 buying centres. Gemstone auctions in Mirerani and Arusha generated 2.7 billion shillings ($1 million), improving price discovery and market transparency.
Geological surveys now cover 98% of the country, and 32 seismic monitoring stations have been installed, steps aimed at reducing exploration risk and improving operational safety.
“These developments point to a more mature, better-regulated mining sector with growing downstream capacity,” Mavunde said, highlighting the government’s focus on stable rules, value addition, and long-term partnerships with investors.
