A comprehensive data-driven analysis of Tanzania's mining sector transformation from 2015-2025, examining GDP contribution, revenue generation, export performance, and development impact
Over the past decade, Tanzania's mining sector has undergone a profound transformation, evolving from a peripheral contributor to the economy into one of the country's most strategic growth engines. By 2024, the sector achieved a historic milestone by contributing 10.1% of national GDP, surpassing the government's 2026 target two years ahead of schedule.
Beyond headline GDP figures, the mining sector has become a cornerstone of government revenue mobilization and fiscal stability. Mining-related taxes, royalties, and levies rose sharply from TZS 624.6 billion in 2021/22 to an estimated over TZS 1.4 trillion in 2025, representing a year-on-year increase of more than 80%.
The sector has also redefined Tanzania's external economic position by becoming the country's largest source of foreign exchange. Mineral exports, dominated by gold, accounted for roughly 50-55% of total national exports in 2025, with export earnings estimated between USD 4.4 and 4.7 billion. High international gold prices (averaging around USD 2,500 per ounce) combined with increased production at major mines such as Geita and North Mara helped boost foreign exchange reserves to approximately USD 6.6 billion, providing more than five months of import cover.
The mining sector's contribution to Tanzania's GDP has experienced remarkable growth over the past decade, increasing from approximately 3.8% in 2015 to a historic 10.1% in 2024. This growth trajectory demonstrates the sector's transformation into a primary economic driver for the nation.
| Year/Quarter | GDP Contribution (%) | Mining GDP (TZS Million) | Mining GDP (USD Million) | Growth Rate |
|---|---|---|---|---|
| 2015 | ~3.8% | 4,000,000 | 1,700 | - |
| 2018 | 4.8% | - | 2,960 | +26% |
| 2020 | 7.3% | 9,900,000 | 4,200 | +52% |
| 2021 | 7.2% | - | - | -1.4% |
| 2022 | 9.1% | 2,008,000 | 800 | +26% |
| 2023 | 9.1% | - | - | 0% |
| 2024 (Full Year) | 10.1% | 2,318,000 | 923 | +11% |
| 2025 Q1 | ~9.5% | 2,250,262 | 896 | -2.9%* |
| 2025 Q2 | ~9.5% | 2,335,835 | 930 | +3.8% (from Q1) |
| 2025 (Projected) | 10.0%+ | ~9,500,000 | ~3,785 | +5% |
Tanzania's mining sector significantly outperforms regional peers, establishing the country as the undisputed mining leader in East Africa. The country's mining GDP contribution is nearly double that of Mozambique, the second-ranked nation in the region.
| Rank | Country | Mining GDP (USD Million) | % of GDP |
|---|---|---|---|
| 1st | Tanzania | 923 | 10.1% |
| 2nd | Mozambique | 460 | 5.2% |
| 3rd | Uganda | 226 | 0.8% |
| 4th | Kenya | 189 | 0.3% |
| 5th | Rwanda | 140 | 1.2% |
On the continental level, Tanzania ranks 4th in absolute mining GDP, demonstrating its significance in Africa's mining landscape. While countries like South Africa, Egypt, and Guinea have larger absolute mining GDP values, Tanzania's 10.1% GDP contribution percentage is among the highest on the continent.
| Rank | Country | Mining GDP (USD Billion) | % of National GDP |
|---|---|---|---|
| 1 | South Africa | 11.5 | 7-8% |
| 2 | Egypt | 5.8 | 4.5% |
| 3 | Guinea | 4.9 | 22% |
| 4 | Tanzania | 0.923 | 10.1% |
| 5 | Nigeria | 0.625 | <1% |
| 6 | Ghana | 0.580 | 5.2% |
| 7 | Zambia | 0.165 | 3.8% |
Tanzania's mining sector has emerged as a critical pillar of government revenue mobilization, with tax collections showing unprecedented growth over the past five years.
The mining sector has fundamentally transformed Tanzania's external trade position, emerging as the country's largest source of foreign exchange.
Tanzania's mining sector has evolved into a significant employment generator, creating opportunities across formal and informal segments. The sector's commitment to local content has resulted in one of the highest rates of indigenous workforce participation in Africa's mining industry.
| Category | 2020 | 2022 | 2024 | 2025 (Estimate) | Growth (2020-2025) |
|---|---|---|---|---|---|
| Total Mining Employment | 310,000 | 37,800* | 310,000+ | ~350,000+ | +12.9% |
| Large-scale Mining | - | - | 14,742 | ~16,000 | - |
| Medium-scale Mining | - | - | 3,100 | ~3,500 | - |
| Small-scale Mining (ASM) | - | - | 1,514** | ~40,000+ | - |
| Tanzanian Workers | - | - | 18,853 | ~340,000 | - |
| Foreign Workers | - | - | 503 | ~600 | - |
| Tanzanian Share (%) | - | - | 97.4% | 97.1% | - |
The formal mining sector shows a clear concentration of employment in large-scale operations, which offer higher wages and more stable working conditions. However, small and medium-scale mining provide crucial livelihood opportunities in rural areas.
| Mine Scale | Number of Employees | % of Total | Average Wage (TZS/month) | Average Wage (USD/month) |
|---|---|---|---|---|
| Large-scale | 14,742 | 76% | 850,000 | ~$339 |
| Medium-scale | 3,100 | 16% | 520,000 | ~$207 |
| Small-scale | 1,514 | 8% | 280,000 | ~$112 |
| Total (Formal) | 19,356 | 100% | 609,000 | ~$243 |
Tanzania's local content framework has achieved exceptional results, with Tanzanian-owned companies accounting for over 91% of total sales in the mining industry. This demonstrates the effectiveness of policies requiring indigenous participation in mining ventures.
| Metric | Value | Target | Achievement Rate |
|---|---|---|---|
| Local Content Plans Reviewed | 1,050 | 1,050 | 100% |
| Plans Meeting Standards | 1,036 | 1,050 | 98.7% |
| Local Company Sales (USD Billion) | 3.47 | - | - |
| Local Share of Total Sales (%) | 91.7% | 80% | 114.6% |
| Tanzanians in Workforce (%) | 97.4% | 90% | 108.2% |
Gold production remains the cornerstone of Tanzania's mining sector, with the country ranking among Africa's top gold producers. Recent years have seen record production levels, though 2025 figures reflect strategic shifts toward local value addition through new refining requirements.
| Year/Period | Production (kg) | Production (Troy Ounces) | Value (USD Million)* | Growth Rate |
|---|---|---|---|---|
| 2014 | 40,000 | 1,286,000 | 1,543 | - |
| 2017 | 43,000 | 1,382,000 | 1,658 | +7.5% |
| 2018 | 39,000 | 1,254,000 | 1,505 | -9.3% |
| 2020 | 47,000 | 1,511,000 | 2,867 | +20.5% |
| 2024 (Full Year) | 60,000 | 1,929,000 | 4,230 | +27.7% |
| 2025 Q1 | 9,539 | 306,606 | 692 | - |
| 2025 Q3 (Up to Sep) | 10,574 | 339,929 | 878 | Highest quarterly output |
| 2025 (Projected) | ~42,000+ | ~1,350,000+ | ~3,375+ | -30%** |
Tanzania's gold production is concentrated among several major mines operated by international mining companies. Geita Gold Mine, operated by AngloGold Ashanti, is the country's largest producer, accounting for 43% of total output.
Operator: AngloGold Ashanti | Region: Mwanza
Operator: Barrick (Twiga) | Region: Mara
| Mine | Operator | Production Share (%) | Annual Output (oz) | Region |
|---|---|---|---|---|
| Geita | AngloGold Ashanti | 43% | 649,730 | Mwanza |
| North Mara | Barrick (Twiga) | 21% | 317,310 | Mara |
| Buzwagi | Acacia/Barrick | 10% | 151,100 | Shinyanga |
| Shanta | Shanta Gold | 6% | 90,660 | Songwe |
| Bulyanhulu | Barrick (Twiga) | 3% | 45,330 | Kahama |
| Stamigold | STAMICO | 1% | 15,110 | Biharamulo |
| Others | Various | 16% | 241,760 | Various |
| Total | - | 100% | 1,511,000 | - |
Tanzania possesses substantial gold reserves and resources, with an estimated total of 45 million ounces. At current gold prices, these reserves represent over $107 billion in potential value, securing the country's position as a major gold producer for decades to come.
| Category | Quantity (Million Ounces) | Value (USD Billion)* | | Value (USD Billion) | | Value (USD Billion) | % of Total | |
|---|---|---|---|---|---|---|---|
| Proven Reserves | 10.0 | 23.9 | 22% | ||||
| Probable Reserves | 15.0 | 35.8 | 33% | ||||
| Indicated Resources | 20.0 | 47.7 | 45% | ||||
| Total Estimated | 45.0 | 107.4 | 100% |
Tanzania is strategically positioning itself as a key player in the global transition to clean energy and electric vehicles. The country possesses significant deposits of critical minerals essential for battery production, renewable energy technologies, and advanced electronics.
| Mineral | Global Ranking | Estimated Reserves | Primary Use | Development Stage |
|---|---|---|---|---|
| Graphite | Top 10 | Large deposits | EV batteries | Production/Expansion |
| Nickel | Top 15 | 58 million tons | EV batteries, steel | Development |
| Rare Earth Elements (REE) | Top 20 | 24 types identified | Electronics, renewables | Exploration |
| Cobalt | Top 20 | Significant | EV batteries | Exploration |
| Lithium | Emerging | Being assessed | EV batteries | Exploration |
| Uranium | Top 10 globally | Large reserves | Nuclear energy | Exploration |
Several world-class critical mineral projects are advancing through development stages, attracting significant international investment and technological partnerships.
Investor: Lifezone Metals (UK) | Minerals: Nickel, Copper, Cobalt
Investor: Volt Resources (AUS) | Mineral: Graphite
Mineral: Rare Earths | Type: Exploration
| Project | Mineral | Investor | Investment (USD Million) | Status | Expected Production |
|---|---|---|---|---|---|
| Kabanga Nickel | Nickel, Copper, Cobalt | Lifezone Metals (UK) | 75+ | Development | High-grade sulphide |
| Bunyu Graphite | Graphite | Volt Resources (AUS) | 37 | Under construction | 40,000 tons/year |
| Lindi Jumbo | Graphite | Walkabout Resources | - | Development | Battery-grade |
| Mahenge Graphite | Graphite | Black Rock Mining | - | Early works | Industrial scale |
| Ngualla REE | Rare Earths | - | 3,150 | Exploration | Various REEs |
| Tembo Nickel | Nickel | - | Under negotiation | Negotiation | - |
The mining sector has emerged as the primary driver of foreign direct investment in Tanzania, attracting 41% of total national investment in 2025. This reflects strong investor confidence in Tanzania's geological potential and improved regulatory environment.
| Investment Category | Amount (USD Million) | Share (%) | Key Projects/Focus Areas |
|---|---|---|---|
| Total National Investment | 10,950 | 100% | 915 total projects |
| Mining Sector Projects | 4,500 | 41% | Graphite, nickel, lithium, gold, REE |
| Mining-related Infrastructure | 3,550 | 32% | Railway, ports, power grid |
| New Mining Investments (2025) | 306 | 2.8% | 13 new mining projects |
| Other Sectors | 2,594 | 24% | Agriculture, tourism, manufacturing |
Tanzania has established a comprehensive regulatory framework governing mining operations, with clear licensing procedures and competitive fiscal terms designed to balance revenue generation with investment attraction.
| License Type | Issued | Target | Achievement Rate |
|---|---|---|---|
| Total Licenses | 34,348 | 37,318 | 92.0% |
| Small-scale Mining | 30,101 | 32,923 | 91.4% |
| Prospecting Licenses | 2,845 | 3,000 | 94.8% |
| Gemstone Dealer Licenses | 1,234 | 1,200 | 102.8% |
| Mining Licenses | 156 | 180 | 86.7% |
| Special Mining Licenses | 12 | 15 | 80.0% |
Tanzania's royalty structure is differentiated by mineral type, with higher rates for precious metals and gemstones compared to industrial minerals. All minerals are subject to a 1% inspection fee in addition to royalties.
| Mineral Category | Royalty Rate (%) | Inspection Fee (%) | Total Government Take (%) |
|---|---|---|---|
| Diamonds & Gemstones | 6.0 | 1.0 | 7.0 |
| Precious Metals (Gold, Silver, Platinum) | 6.0 | 1.0 | 7.0 |
| Uranium | 6.0 | 1.0 | 7.0 |
| Base Metals (Copper, Nickel) | 6.0 | 1.0 | 7.0 |
| Industrial Minerals | 3.0 | 1.0 | 4.0 |
| Cut & Polished Gemstones | 1.0 | 1.0 | 2.0 |
| Coal | 1.0 | 1.0 | 2.0 |
| Salt | 1.0 | 1.0 | 2.0 |
Tanzania maintains a policy of government equity participation in mining projects, with a minimum 16% free carry interest in all large-scale mining operations. This ensures the government benefits directly from mining profits beyond tax and royalty revenues.
| Project Type | Minimum Free Carry Interest (FCI) | Additional Equity Option | Total Possible |
|---|---|---|---|
| Large-scale Mining | 16% (non-dilutable) | Up to 34% | 50% |
| Special Mining License | 16% (non-dilutable) | Commensurate with tax expenditures | 50% |
| Medium-scale | Negotiable | Negotiable | Varies |
The government has significantly strengthened inspection and compliance monitoring across all mine categories, with over 47,000 inspections conducted in 2024 alone. This robust oversight ensures adherence to safety, environmental, and operational standards.
| Mine Type | Number of Inspections | Compliance Rate (%) | Key Focus Areas |
|---|---|---|---|
| Large-scale Mines | 85 | 96% | Full regulatory compliance |
| Medium-scale Mines | 144 | 87% | Safety, environmental standards |
| Small-scale Mines | 47,500+ | 72% | Formalization, safety practices |
| Total | 47,729 | 75% | All standards |
Beyond direct economic contributions, Tanzania's mining sector has generated substantial social impact through corporate social responsibility investments and community development initiatives. Mining companies have become major contributors to local infrastructure and social services.
| Year | CSR Investment (TZS Billion) | CSR Investment (USD Million) | Key Areas |
|---|---|---|---|
| 2023/2024 | 17.08 | 6.81 | Schools, hospitals, roads, water |
Mining companies have implemented comprehensive community development programs focusing on education, healthcare, water infrastructure, and transportation. These investments directly benefit over 500,000 people in mining communities.
| Project Type | Number of Projects | Investment (TZS Million) | Beneficiaries |
|---|---|---|---|
| Schools Construction/Renovation | 45 | 3,850 | 25,000+ students |
| Healthcare Facilities | 28 | 4,200 | 150,000+ people |
| Water Infrastructure | 67 | 5,100 | 200,000+ people |
| Road Construction | 34 | 3,930 | Multiple communities |
| Total | 174 | 17,080 | 500,000+ |
Large-scale infrastructure projects have been developed to support mining operations, creating broader economic benefits. These include railway lines, port facilities, and power grid upgrades that serve both mining operations and surrounding communities.
| Infrastructure Project | Investment (USD Billion) | Purpose | Timeline |
|---|---|---|---|
| Tanzania-Zambia Railway Revival | 1.40 | Mineral transport | 2025-2055 (30-year) |
| Tanzania-Burundi Railway | 2.15 | Western mining regions access | 2025-2028 |
| Kigoma Port & Malindi Terminal | 0.50 | Export infrastructure | 2025-2027 |
| Grid Upgrades (Kabanga Project) | 0.08 | Mining operations power | 2025-2026 |
Tanzania's mining sector has consistently exceeded targets across multiple key performance indicators, demonstrating the effectiveness of policy reforms and favorable market conditions.
| Indicator | 2024 Achievement | 2025 Achievement | 2026 Target | 2025 Status |
|---|---|---|---|---|
| GDP Contribution | 10.1% | 9.5-10.0% | 10.0% | ✅ On Target |
| Tax Revenue (TZS Million) | 753,820 | ~1,400,000 | 800,000 | ✅ Exceeded |
| Export Value (USD Million) | ~3,200 | 4,400-4,700 | 4,000 | ✅ Exceeded |
| Direct Employment | 310,000+ | ~350,000+ | 340,000 | ✅ Exceeded |
| Local Content (%) | 91.7% | 92.5% | 90.0% | ✅ Exceeded |
| Tanzanian Workforce (%) | 97.4% | 97.1% | 95.0% | ✅ Exceeded |
| Foreign Reserves Impact (USD Bn) | 5.8 | 6.6 | 6.0 | ✅ Exceeded |
| National GDP Growth Contribution | ~1.0% | ~0.58% (of 5.8% total) | 0.8% | ✅ Strong |
Tanzania has established ambitious targets for 2030 as part of its long-term development vision. Current progress demonstrates strong momentum toward achieving these goals.
| Objective | Current Status (2024) | 2030 Target | Progress (%) |
|---|---|---|---|
| Geoscientific Survey Coverage | 16% | 50% | 32% |
| GDP Contribution | 10.1% | 15% | 67% |
| Value Addition (Local Processing) | 15% | 40% | 38% |
| Employment Creation | 19,356 formal | 50,000 formal | 39% |
| Export Earnings (USD Bn) | 4.7 | 8.0 | 59% |
Tanzania's mining sector outperforms regional peers across multiple dimensions, from GDP contribution to employment generation and export earnings.
| Country | Mining GDP % | Employment (000s) | Mineral Exports (USD Bn) | Key Minerals |
|---|---|---|---|---|
| Tanzania | 10.1% | 19.4 | 4.70 | Gold, diamonds, tanzanite |
| Kenya | 0.3% | 8.5 | 0.15 | Soda ash, fluorspar |
| Uganda | 0.8% | 12.0 | 0.20 | Gold, cement |
| Rwanda | 1.2% | 6.8 | 0.45 | Tin, tantalum, tungsten |
| Zambia | 3.8% | 85.0 | 9.50 | Copper, cobalt |
| DRC | 25.0% | 200.0 | 15.00 | Copper, cobalt, diamonds |
Tanzania scores highly on investment attractiveness metrics, particularly in regulatory framework, local content compliance, and geological potential.
| Factor | Tanzania Score | Regional Average | Africa Average |
|---|---|---|---|
| Regulatory Framework | 78/100 | 65/100 | 60/100 |
| Geological Potential | 85/100 | 70/100 | 75/100 |
| Infrastructure | 65/100 | 60/100 | 55/100 |
| Political Stability | 72/100 | 68/100 | 62/100 |
| Local Content Compliance | 92/100 | 70/100 | 65/100 |
| Overall Score | 78/100 | 67/100 | 63/100 |
Expand local processing and refining capacity to capture more economic value domestically. The 20% local refining mandate is a good start, but greater value addition opportunities exist in gemstone cutting, mineral processing, and battery materials production.
Increase geological survey coverage from current 16% to achieve 50% by 2030. Enhanced geological data will attract more investment and unlock new mineral discoveries, particularly for critical minerals.
Continue investing in railway, port, and power infrastructure to support growing mining operations. The $4+ billion infrastructure pipeline should be accelerated to reduce operational costs and improve competitiveness.
Establish specialized mining training institutions and technical programs to build local capacity for technical mining positions, reducing reliance on foreign expertise and creating higher-value employment.
Accelerate development of critical mineral projects (graphite, nickel, lithium, REEs) to reduce dependency on gold and position Tanzania as a key supplier in global clean energy supply chains.
Maximize benefits from Tanzania's participation in the Minerals Security Partnership (MSP) to attract investment, technology transfer, and market access for critical minerals development.
Tanzania's mining sector has undergone a remarkable transformation over the past decade, evolving from a peripheral contributor to become one of the country's most strategic economic pillars. The achievement of 10.1% GDP contribution in 2024—two years ahead of schedule—demonstrates the sector's robust growth trajectory and the effectiveness of policy reforms.
With mineral exports exceeding $4.7 billion, revenue collections surpassing $1.4 billion, and employment reaching 350,000+, the mining sector has proven its capacity to drive economic growth, generate government revenue, create employment, and support infrastructure development.
Looking ahead, Tanzania's strategic focus on critical minerals positions the country at the forefront of the global energy transition. As the world shifts toward electric vehicles and renewable energy, Tanzania's deposits of graphite, nickel, lithium, and rare earth elements offer tremendous growth potential. With continued policy support, infrastructure investment, and commitment to local content, Tanzania's mining sector is poised to deliver sustained economic and social benefits for decades to come.
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