The mining sector in Tanzania is on a growth trajectory and is set to be a significant contributor to the Tanzanian economy.
The contribution of the Tanzanian mining sector to the country’s GDP grew by 2.5% from 2018 to 2021, jumping to 7.3% from 4.8%, inching closer to government projections.
This information was disclosed by the Mining Commission executive secretary Yahya Samamba, who noted during a press briefing on the 9th of October, 2022 that the country’s mining sector was following the intended trend based on the administration’s promise.
During her inaugural speech, the then-newly-elected president of Tanzania, President Samia Suluhu Hassan, promised that her administration would do everything within its power to increase the mining contribution to at least 10 percent of the gross domestic product (GDP) by 2025. Yesterday the mining commissioner remarked that they were right on track.
“We believe we will achieve the 10 percent target before 2025,” he said during a meeting broadcast live from Dodoma. The sector is growing fast, investors are coming and the government is creating a conducive environment for investment.” Yahya said.
He also revealed that the exports of minerals increased from 42 tonnes in 2018 to 55.6 tonnes last year. Coupled with the blue economy which is being developed in Zanzibar, the region is fast-tracking its economic growth. Read the story here.
Including plans to take advantage of improving the investment climate, the government of Tanzania is also looking to welcome joint ventures with some of the world’s largest miners, among other initiatives to achieve the president’s promise.
According to the Bank of Tanzania, the country currently mines the best-performing gold, which the bank disclosed is now the country’s leading foreign exchange earner. Gold generated a total of $2.7 billion in exports in 2021, BoT indicates.
The country is also rich in other mineral resources including nickel, graphite, tanzanite, sapphire, cobalt, diamond, silver, and ruby.