According to the National Bureau of Statistics (NBS) Tanzania, the GDP from mining in Tanzania reached 2,317,959 TZS million (approximately 0.923 billion USD at an exchange rate of about 2,510 TZS per USD) in the fourth quarter of 2024, up from 2,283,791.41 TZS million in the third quarter of 2024. This marks an all-time high, […]
According to the National Bureau of Statistics (NBS) Tanzania, the GDP from mining in Tanzania reached 2,317,959 TZS million (approximately 0.923 billion USD at an exchange rate of about 2,510 TZS per USD) in the fourth quarter of 2024, up from 2,283,791.41 TZS million in the third quarter of 2024. This marks an all-time high, reflecting a year-on-year growth and a significant rise from the historical average of 1,004,540.49 TZS million (2005–2024). The lowest recorded value was 197,832.14 TZS million in Q4 2008, indicating a remarkable increase of over 1,000% in nominal terms over 16 years.
The growth in Tanzania’s mining GDP is driven by:
Gold Production: Tanzania is Africa’s fourth-largest gold producer (after South Africa, Ghana, and Mali), with annual production of approximately 40–47 metric tons in recent years. Gold exports alone were valued at USD 2.86 billion in 2022/2023, contributing significantly to foreign exchange earnings.
Diverse Mineral Portfolio: Tanzania mines over 40 types of minerals, including diamonds, tanzanite (unique to Tanzania), coal, copper, nickel, lithium, graphite, and rare earth elements. Notable increases in coal exports (from USD 23.2 million to USD 228.6 million year-on-year) and diamond exports (from USD 9.6 million to USD 66.9 million) have bolstered the sector.
Policy Reforms: Government initiatives under President Samia Suluhu Hassan, including enhanced regulatory frameworks, gemstone auctions, and local mineral markets, have increased the sector’s GDP contribution from 7.2% in 2021 to 10.1% in 2024, surpassing the 2026 target of 10%.
Investment and Infrastructure: Investments in mining, such as deals with Australian companies worth USD 3.15 billion for rare earths and graphite, and Tesla’s contract for anode active material, have boosted output.
Tanzania’s Position in Africa
Tanzania’s mining GDP of 2,317,959 TZS million (approx. 0.923 billion USD) in Q4 2024 places it among the top contributors to mining GDP in Africa, though direct comparisons are challenging due to varying currencies and reporting periods. Below is a comparative analysis with key African countries based on the provided data (converted to USD where possible for consistency, using approximate exchange rates as of May 2025):
Nigeria: 1,039,318 NGN million (approx. 0.625 billion USD, at 1,665 NGN/USD). Despite Nigeria’s larger overall economy, its mining GDP is lower than Tanzania’s in USD terms, reflecting Tanzania’s stronger focus on mining.
South Africa: 203,866 ZAR million (approx. 11.5 billion USD, at 17.7 ZAR/USD). South Africa, Africa’s top gold producer, significantly outpaces Tanzania due to its larger and more diversified mining sector (gold, platinum, coal).
Egypt: 252,968 EGP million (approx. 5.1 billion USD, at 49.5 EGP/USD). Egypt’s mining sector, driven by phosphate and gold, exceeds Tanzania’s in USD terms but is less dominant in GDP share.
Ghana: 6,579 GHS million (approx. 0.446 billion USD, at 14.75 GHS/USD). Ghana, Africa’s third-largest gold producer, has a lower mining GDP than Tanzania, highlighting Tanzania’s competitive position.
Guinea: 42,871 GNF billion (approx. 4.9 billion USD, at 8,750 GNF/USD, Dec 2023 data). Guinea’s bauxite-driven mining sector surpasses Tanzania in value, but its data is outdated.
Zambia: 4,264 ZMW million (approx. 0.165 billion USD, at 25.8 ZMW/USD). Zambia’s copper-focused mining sector contributes less to GDP than Tanzania’s in absolute terms.
Ranking in Africa: Tanzania ranks among the top five African countries in mining GDP contribution, likely behind South Africa, Egypt, and Guinea, but ahead of Nigeria, Ghana, and Zambia in USD terms. Its 10.1% GDP share from mining in 2024 is notably high, compared to South Africa (approx. 7–8%) and Nigeria (less than 1%), underscoring mining’s critical role in Tanzania’s economy.
Tanzania’s Position in East Africa
In East Africa, Tanzania is a leader in mining GDP, surpassing regional peers:
Kenya: 24,462 KES million (approx. 0.189 billion USD, at 129 KES/USD). Kenya’s mining sector is significantly smaller, focusing on soda ash and small-scale gold mining.
Uganda: 835 UGX billion (approx. 0.226 billion USD, at 3,700 UGX/USD). Uganda’s mining sector, primarily artisanal gold and limestone, is far less developed than Tanzania’s.
Mozambique: 34,809 MZN million (approx. 0.545 billion USD, at 63.9 MZN/USD). Mozambique’s mining GDP, driven by coal and gas, is lower than Tanzania’s, despite its larger natural gas potential.
Rwanda: 50 RWF billion (approx. 0.037 billion USD, at 1,350 RWF/USD). Rwanda’s mining sector (tin, tungsten) is minimal compared to Tanzania’s.
East African Ranking: Tanzania is the top contributor to mining GDP in East Africa in Q4 2024, with a value nearly double that of Mozambique, the next closest competitor. Its 10.1% GDP share from mining far exceeds regional averages, where mining typically contributes 1–5% to GDP in countries like Kenya and Uganda. Tanzania’s leadership is further reinforced by its role in regional coal mining and its hosting of the East Africa Crude Oil Pipeline, enhancing its extractive sector prominence.
Additional Context and Figures
Tax Revenue: Mining tax revenue in Tanzania surged by 20.7% to TZS 753.82 billion (approx. USD 0.3 billion) in 2023/2024, with TZS 312.75 billion collected by October 2024 toward a TZS 1 trillion target for 2024/2025. This reflects improved regulatory enforcement and local content policies.
Employment: The sector employed 310,000 Tanzanians in 2020 and created 19,356 jobs by March 2024 (97% for Tanzanians), boosting economic inclusivity.
Export Earnings: Mineral exports reached USD 3.6 billion in 2020, with gold dominating, and total exports (including minerals) hit USD 16.1 billion in 2024, up 15.1% year-on-year.
Future Potential: Tanzania’s focus on critical minerals (lithium, nickel, graphite) and projects like the Likong’o-Mchinga LNG plant (valued at USD 30 billion) position it for sustained growth.
Conclusion
Tanzania’s mining GDP of 2,317,959 TZS million in Q4 2024 underscores its robust growth, driven by gold, gemstones, and strategic reforms. In Africa, it ranks among the top five mining economies, behind South Africa, Egypt, and Guinea, but ahead of Nigeria and Ghana. In East Africa, Tanzania is the undisputed leader, with a mining GDP nearly double that of Mozambique and significantly higher than Kenya, Uganda, and Rwanda. Its 10.1% GDP contribution from mining in 2024, coupled with rising tax revenues and export earnings, cements its position as a regional powerhouse, with potential for further growth in critical minerals and natural gas.
"Key Figures: Tanzania’s Mining Boom and Economic Development, 2008–2024"
Country
Mining GDP (Local Currency, Q4 2024 unless noted)
Mining GDP (USD, Approx.)
Share of National GDP (Mining, %)
Key Minerals
Notes
Tanzania
2,317,959 TZS million
0.923 billion
10.1% (2024)
Gold, Tanzanite, Coal, Nickel, Lithium
All-time high in Q4 2024; historical avg. 1,004,540 TZS million (2005–2024); exports USD 3.6 billion (2020)
South Africa
203,866 ZAR million
11.5 billion
7–8%
Gold, Platinum, Coal
Africa’s top mining economy
Egypt
252,968 EGP million
5.1 billion
~5%
Phosphate, Gold
Strong phosphate production
Guinea
42,871 GNF billion (Dec 2023)
4.9 billion
~30%
Bauxite
Data from 2023; bauxite-driven
Nigeria
1,039,318 NGN million
0.625 billion
<1%
Limestone, Coal
Smaller mining sector despite large economy
Ghana
6,579 GHS million
0.446 billion
~10%
Gold
Third-largest gold producer in Africa
Mozambique
34,809 MZN million
0.545 billion
~10%
Coal, Gas
Significant gas potential
Kenya
24,462 KES million
0.189 billion
~1%
Soda Ash, Gold
Small-scale mining
Uganda
835 UGX billion
0.226 billion
~2%
Gold, Limestone
Largely artisanal
Rwanda
50 RWF billion
0.037 billion
~2%
Tin, Tungsten
Minimal mining sector
Zambia
4,264 ZMW million
0.165 billion
~15%
Copper
Copper-dominated
Tanzania Metrics
Metric
Value
Notes
Historical Low (Mining GDP)
197,832 TZS million (Q4 2008)
Over 1,000% growth to Q4 2024
Tax Revenue (2023/2024)
TZS 753.82 billion (USD 0.3 billion)
20.7% increase year-on-year
Employment (2020)
310,000 jobs
19,356 new jobs by Mar 2024 (97% Tanzanian)
Mineral Exports (2020)
USD 3.6 billion
Gold dominates; coal exports up from USD 23.2M to USD 228.6M
