Mining sector hits 7.3 percent of Tanzania's GDP

Dar es Salaam. The contribution of the mining sector to the economy increased to 7.3 percent last year from 4.8 percent recorded in 2018, moving closer to the government targets.

In her inaugural speech to Parliament last year, President Samia Suluhu Hassan said the government would strive to increase the mining contribution to at least 10 percent of the gross domestic product (GDP) by 2025.

Briefing reporters yesterday, Mining Commission executive secretary Yahya Samamba said the sector’s contribution was on the right 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 conducive environment for investment,” he added.

The government is banking on improving investment climate and embracing joint ventures with the world’s largest miners, among other measures that seek to achieve the goals in the sector.

Tanzania is home to a range of minerals including the best performing gold which, according to the Bank of Tanzania, is now the country’s leading foreign exchange earner. Gold generated a total of $2.7 billion exports in 2021, BoT indicates.

Other minerals include nickel, graphite, tanzanite, sapphire, cobalt, diamond, silver and ruby. Mr Samamba said the exports of minerals increased from 42 tonnes in 2018 to 55.6 tonnes last year.

According to him, the government is prioritizing mining of graphite, cobalt and helium among others minerals which are considered key in generating clean energy around the world.

He also said the government was auditing mineral licences in Tanzania so as to revoke those which are not active