{"id":315,"date":"2026-01-24T14:30:37","date_gmt":"2026-01-24T14:30:37","guid":{"rendered":"https:\/\/tanzaniamonitor.com\/?p=315"},"modified":"2026-01-24T14:30:37","modified_gmt":"2026-01-24T14:30:37","slug":"tanzania-turns-raw-materials-into-value-added-wealth","status":"publish","type":"post","link":"https:\/\/tanzaniamonitor.com\/sw\/2026\/01\/24\/tanzania-turns-raw-materials-into-value-added-wealth\/","title":{"rendered":"Tanzania turns raw materials into value-added wealth"},"content":{"rendered":"

DODOMA, Tanzania: Tanzania is rewriting its economic story. Where raw commodities once left the country with minimal benefit, local processing is now creating jobs, boosting revenues, and opening doors for global investors.<\/p>\n

The government has implemented deliberate reforms to increase value addition and strengthen local content across key sectors: mining, industry, agriculture, and manufacturing.<\/p>\n

These efforts are anchored in strategic frameworks like the Third National Five Year Development Plan (FYDP III), part of Vision 2025, which emphasizes competitiveness and industrialization as drivers of inclusive development.<\/p>\n

The results are visible. In 2024, industry, including manufacturing and construction, contributed 28.7% of GDP, marking a long-term upward trend.<\/p>\n

Mining\u2019s share of GDP rose to 10.1% in 2024, up from 9.1% in 2023, reflecting stronger oversight, transparency, and formalized markets.<\/p>\n

Local content regulations have been a key driver. Under the 2018 amended Local Content Regulations, goods and services are reserved for Tanzanian companies where possible.<\/p>\n

In 2024, local procurement in mining reached 88% of total goods and services, rising from TZS 1.85 trillion in 2018 to TZS 4.41 trillion, while 97% of mining employees are now Tanzanians.<\/p>\n

President Samia Suluhu Hassan frames this transformation as a strategy to ensure national resources benefit citizens directly.<\/p>\n

“Tanzania will stop exporting raw concentrates and aim to become a trading hub for minerals in East and Central Africa by 2030, retaining value within the country,” President Samia said.<\/p><\/blockquote>\n

Agriculture and local processing<\/strong><\/p>\n

Agriculture, the backbone of Tanzania\u2019s economy, is central to this strategy. By processing crops into higher-value products like flour and edible oils, farmers see better incomes and stable markets. As Amina Msuya from Morogoro explains: \u201cWe used to sell raw harvests for small sums. Local processing means fairer prices and more stable income.\u201d<\/p>\n

Fiscal policies reinforce this strategy. The 2025\/26 national budget prioritizes inclusive economic transformation, domestic resource mobilization, and job creation.<\/p>\n

Planning and Investment Minister Prof. Kitila Mkumbo noted that producing previously imported goods domestically could save over TZS 2.8 trillion annually, while surplus output can expand export markets.<\/p>\n

Regional trade and integration<\/strong><\/p>\n

Tanzania\u2019s reforms have strengthened its position in regional trade. In 2023, goods exports to African countries reached USD 2.65 billion, exceeding imports of USD 1.5 billion, demonstrating a favorable trade balance under frameworks like AfCFTA and the East African Community (EAC).<\/p>\n

By 2024, exports climbed to USD 3.24 billion, placing Tanzania among the top ten African countries for intra-African export volumes.<\/p>\n

Value-added exports are also growing. Under AfCFTA scenarios, agricultural and food value-added exports are projected to rise 13.2% over baseline levels, outpacing peers such as Ghana (4.1%) and South Africa (7.5%).<\/p>\n

Intra-regional trade continues to expand, with EAC exports rising 47.3% in a 2025 quarter, highlighting Tanzania\u2019s responsiveness to trade liberalization.<\/p>\n

Opportunities for investors<\/strong><\/p>\n

Tanzania\u2019s strategy opens multiple avenues for foreign investment:<\/p>\n