Over decades good governance of the extractive sector has remained insufficient with mineral, oil and natural gas wealth failing to fully deliver on expected economic prosperity
Mining is an important sector for Tanzania. Tanzania’s mining sector is diverse and the volume of mining activities and value of mineral exports has constantly increased over the past recent years. Tanzania’s mining sector includes both artisanal, small, medium and large-scale operations.
Minerals found in Tanzania include metallic minerals such as gold, iron, silver, copper, platinum, nickel and tin; gemstones such as diamonds, tanzanite, ruby, garnet, emerald, alexandrite and sapphire; industrial minerals such as kaolin, phosphate, lime, gypsum, diatomite, bentonite, vermiculite, salt and beach sand; building materials such as stone aggregates and sand; and energy minerals such as coal and uranium.
The economic value of mining is significant. Tanzania’s mining sector has consistently contributed to the country’s GDP. For instance, from 2018 to 2022, the sector’s contribution grew from 4.8% to 9.1% which was closer to the 10% of GDP target that the government set to achieve by 2025. In 2023, minerals worth USD 3.551 billion were exported, accounting for 56.2% of non-traditional exports, compared to USD 3.395 billion in 2022. The government collected taxes totaling $855.3 million US Dollars representing 15.84% of the total domestic tax revenue of the country. In the 2023/2024 financial year, the mining sector’s contribution reached TZS 6.4 trillion, showing rapid growth due to the government’s efforts to enhance revenue collection and improve the investment environment.
Tanzania possesses many strategic and critical green transition minerals such as graphite, nickel, lithium manganese and rare earth elements that are currently in both the exploration, development and production stages of mining.The government has commenced a process to institute new mining reforms, with a view of capturing more benefits from its strategic green or critical minerals. These provide a new momentum for Tanzania’s future extractive sector.
At regional level, East and Africa Great Lakes region combined possesses the highest concentration of minerals on the entire Africa continent. There are vast deposits of gold, tanzanite, diamonds, copper, , Titanium, cobalt, coltan, tin, Tantalum, manganese etc. in Tanzania, Kenya, Uganda and the democratic Republic of Congo.
Despite this endowment, minerals have remained drivers of regional conflict and social economic misery. Mineral smuggling and exploitative mining practices with disregard to environmental, human rights and community benefits is rampant.
The region is further endowed with newly discovered petroleum resources such as oil along the East African Great Rift Valley and Albertine basin and natural gas along its East African coastline. Yet with the ongoing debates on decarbonization and the prospects of a transition away from fossil based to clean energy systems investments into these resources has delayed or stagnated. Without strategic governance and ramped up investments, there is a risk that these resources could remain stranded.
Over decades good governance of the extractive sector has remained elusive yet with improvements, the sector can unlock tremendous economic potential, sparing Tanzania and the entire East Africa region faster to a middle income economy status.
This program therefore works to:
- Promote progressive extractive policy and legislative reforms
- Promoting Transparency, Accountability and Community benefit
- Advocacy for proper Green or Critical Minerals governance and just transition
- Inform and promote discourse on Decarbonization and the future of oil and Gas in a Just transition