DAR ES SALAAM: Tanzania’s mining sector has exceeded a major national development target ahead of schedule, contributing 10.1 percent to the country’s Gross Domestic Product (GDP) in 2024 and surpassing the Vision 2025 benchmark a year earlier than planned.
The achievement marks a major turnaround for a sector that contributed just 3.5 percent of GDP in 2008 and was once viewed as a relatively small component of the economy.
Government officials say the rapid growth reflects nearly two decades of reforms, rising investment and a deliberate push toward value addition, industrialisation and strategic mineral development.
Revenue collections from the mining sector have also reached record levels, surpassing one trillion Tanzanian shillings for the first time during the 2024/25 financial year.
According to Minister for Minerals Anthony Mavunde, mining revenues climbed to 1.07 trillion shillings, while collections by March this year had already exceeded the annual target with several months remaining in the fiscal year.
Under Tanzania’s Vision 2025 framework, the government had set a target for the mining sector to contribute at least 10 percent of GDP by 2025 at a time when the industry was still heavily reliant on raw mineral exports and limited local processing.
Officials say the sector is now undergoing broader structural transformation under the government’s Third Five-Year Development Plan, which prioritises local processing, industrial linkages and expansion into strategic minerals.
Deputy Minister for Minerals Steven Kiruswa said mining has evolved into a key driver of national development rather than simply a source of extraction.
“It is no longer just about extraction; it is about national development,” Dr Kiruswa said.
Gold remains Tanzania’s dominant mineral export, accounting for approximately 90 percent of total mineral exports.
Supported by strong international gold prices, mineral export earnings reached about 4.7 billion US dollars in 2025, strengthening Tanzania’s foreign exchange position and overtaking tourism as the country’s leading source of foreign currency earnings.
The Bank of Tanzania has also increased gold purchases in a move aimed at diversifying national reserves and supporting long-term monetary stability.
At the same time, the government is pursuing diversification through investments in critical minerals needed for the global energy transition, including nickel, graphite, rare earth elements and niobium.
Among the flagship developments is the Kabanga Nickel Project, which is progressing toward production using low-carbon processing technology.
Other strategic projects include the Epanko graphite project and the Ngualla rare earth development, both expected to strengthen Tanzania’s role in global clean energy and advanced manufacturing supply chains.
In March this year, Tanzania signed an agreement for the Panda Hill niobium project in Songwe Region, involving an initial investment of 442 million US dollars.
Government estimates indicate the project could account for around four percent of global niobium output while generating more than two trillion shillings through taxes, royalties and dividends, in addition to creating thousands of jobs.
Tanzania sets strategies to surpass 1.2tri/- mining revenue target
The government’s value-addition strategy is also reshaping the mining industry, with seven mineral processing plants now operational and additional refining facilities under development in Mwanza, Geita and Dodoma.
Authorities say the broader goal is to reduce reliance on raw mineral exports and retain more value within the domestic economy.
Local participation in the sector has also expanded significantly.
According to government figures, Tanzanians now account for 97 percent of employment in the mining industry, while local procurement has risen to 88 percent.
The Mining Commission has also allocated mining areas specifically for young Tanzanian investors as part of efforts to increase domestic ownership and participation in the sector.
Despite the sector’s strong performance, stakeholders say several structural challenges remain, including inadequate infrastructure, high energy costs, limited access to financing and continued dependence on gold exports.
Officials have also acknowledged persistent difficulties facing artisanal and small-scale miners, particularly limited access to technology, geological data and capital.
To address these challenges, the government has launched the Mining for a Brighter Tomorrow programme, expanded geological surveys and invested in modern drilling equipment and mineral laboratories.
Maintaining momentum under Tanzania’s Vision 2050 agenda will require deeper industrialisation, expanded mineral processing capacity and stronger integration into global battery, electronics and green energy supply chains.
While the sector has already surpassed one of Tanzania’s key long-term development targets, policymakers say the next challenge will be ensuring the country’s mineral wealth drives broad-based industrial growth, employment creation and sustainable economic transformation.