Australia deepens mining, trade and development ties with Tanzania

To ensure sustainability, it’s critical to recognise that mining is inherently risky, involving substantial up-front investment and long lead times. Investors need a stable, predictable policy and regulatory environment to make calculated risks with a reasonable level of certainty. Confidence in the long-term stability of the investment environment is key to encouraging continued investment.

Perseus Mining recently announced a final investment decision to develop the Nyanzaga Gold Project valued at over $500 million, the first major gold mine to be built in Tanzania in 17 years. What does this milestone represent for Australia’s growing footprint in the country’s mining industry?

Perseus’ investment decision is highly significant for both the company and Tanzania. It builds market confidence and reaffirms Tanzania’s ability to bring large-scale projects to fruition. This milestone is a strong signal to other investors that Tanzania is open for business and capable of facilitating complex mining developments.

Tanzania has an estimated $4.3 billion in mining capital expenditure currently in the pipeline, much of it led by Australian companies. However, several of these projects have remained in the planning phase for years. What’s holding them back, and what needs to happen—both from the government and private sector—for implementation to accelerate?

Every project is unique and comes with its own set of dynamics and challenges. Large mining projects are complex and take time to move from planning to execution, that’s not unique to Tanzania. Even in Australia, it can take years before a project becomes operational. It’s important to set realistic expectations. What matters most is that all stakeholders remain confident in the progress being made. Support for these projects is vital. Comparing projects or companies is not helpful—they are structured differently and respond to different circumstances.

Across Africa, governments are undertaking major reforms to regain more control over their mining sectors, including revising mining codes and, in some cases, nationalising gold assets. How do these shifts impact the confidence and strategies of Australian companies with long-term interests in the region?

Tanzania has made major strides in reforming its investment regulations to be more investor-friendly, which is a major reason for the growing interest in its mining sector. In fact, nine out of eleven new framework agreements were signed with Australian companies, this is a clear vote of confidence.

As these projects progress, it’s important for companies to work closely with government to ensure alignment and that outcomes are beneficial for both the investor and the local communities.

Does the High Commission play any intermediary role in resolving challenges raised by Australian investors in Tanzania?

We don’t act as intermediaries in investor-government negotiations. Our role is to support both sides by helping build mutual understanding and confidence. We reassure the Tanzanian government that Australian companies are serious, high-quality investors. We also share insights based on Australia’s own experience. One way we help is through capacity building—sending Tanzanian professionals to Australia to engage with their counterparts, share knowledge, and bring lessons back to apply locally. But the actual negotiations are best handled directly between the government and the investors.

So, do you mean to say that Australian investors cannot come to the High Commission to seek intervention if they have investment grievances?

 In the first instance, companies engage directly with the Tanzanian government. I wouldn’t frame them as “grievances” either, it’s often about navigating regulatory requirements and finding workable solutions for both parties. Companies work through those discussions with government, and our role is to support those engagements, not to intervene.

Does the High Commission conduct market opportunity surveys to map out opportunities for Australian investors?

Yes, we are constantly exploring opportunities for Australian investors in Tanzania and the broader East African region. We’ve even relocated our trade commissioner from South Africa to Nairobi to focus more on East Africa. They act as a facilitator and first point of contact for Australian businesses interested in the region. We’re also keen to grow our trade relationship with Tanzania, which currently stands at a modest $100 million annually in bilateral trade

What are some of the untapped opportunities between Australia and the EAC?

We’re focused on three core sectors where Australia is globally competitive: mining, education, and agriculture.

In education, for example, Kenya is our largest African source of international students. Across Africa, we have around 17,000 students in Australia at any given time, with over 400,000 people of African descent living in Australia. This growing diaspora strengthens people-to-people ties and fosters future business and employment connections.

Another area that often goes unnoticed is the significant role of Australian NGOs in East Africa, including Tanzania. They are very active and supported by Australian taxpayers through programs that fund community work in health, education, agriculture, and livelihoods.

How is Australia helping Tanzania address the issue of value addition and agribusiness?

The Australian Centre for International Agricultural Research (ACIAR) has worked in East Africa for over four decades, partnering with national institutions based on country-defined priorities.

Currently, these priorities include improving nutrition, enhancing food security, responding to climate change, and boosting productivity. While some of this work touches on value addition, it’s critical that we align with local priorities and test scalable solutions using Australia’s expertise in agriculture.

There is growing advocacy for African countries to have stronger representation and voice in global institutions such as the United Nations Security Council. What is Australia’s position on this call for reform of the global governance architecture?

Australia’s Foreign Minister Penny Wong has been a strong advocate for increased African representation in the United Nations. Australia supports the idea of Africa having a permanent seat on the UN Security Council and a broader role in shaping global decisions.

We believe in reforms that strengthen Africa’s voice and visibility in global governance. For instance, South Africa hosting the G20 presents a great opportunity to highlight African priorities. We also see potential for deeper cooperation on peacebuilding. African countries bring unique experience in conflict resolution and on climate change, where Africa has shown leadership. If our bid to host COP in 2026 succeeds, we look forward to welcoming African countries to partner on advancing climate solutions.

There is a concern that developed nations often treat Africa as one big country and fail to address country-specific issues. What is your take on that view?

We’ve never viewed Africa as one homogenous bloc. Each African country has its own national interests and dynamics, and we respect that diversity. When we engage, we do so based on mutual interests with individual countries. I represent six countries, and I approach each one individually based on its own context and priorities.

That said, regional and continental platforms like the African Union, AfCFTA, SADC, and the EAC are valuable for collective engagement and complement bilateral relationships.

As the global political and economic landscape continues to evolve, how do you see Australia’s partnership with Africa, especially East Africa, changing in the next decade?

We’re in a time of stress and disruption in the multilateral system, but that system has delivered real benefits, from international travel standards to digital connectivity. It’s helped support peace, open trade, and a rules-based order.

We believe Africa values this system too, but reform is needed. We want to work closely with African countries to strengthen the multilateral framework. Australia is a strong supporter, we’re the 11th largest donor to the UN, and our funding helps UN agencies carry out their critical work.

Have shifting global interests and financial constraints led Australia to reconsider its financial aid approach?

Our support for international organisations has remained consistent. In Africa, our contributions have not declined. For example, we have provided over $100 million in humanitarian assistance to the Horn of Africa since 2022, support the UN Environment Programme in Nairobi, and continue funding NGOs doing important work.

With the US and other donors retreating from Africa, has this added pressure on Australia to fill the gap?

The US is currently undergoing a review process that ends in August. We’ll wait to see the outcomes of that. From our side, Australia continues to support the multilateral system, but this isn’t about any single country. It’s a global discussion—how can we collectively sustain and reform the system to meet today’s needs?

Decades after independence, many African countries remain dependent on foreign aid. Is aid being used effectively?

Australia has robust systems to track and evaluate how our aid is spent. We publish reviews and audits online, and I’m confident that our support is aligned with the priorities of both Australia and the recipient governments. We always aim to ensure that our aid is targeted, transparent, and delivers measurable results.

And do you think there’s an aid dependency in Africa?

Africa is undergoing a tremendous transformation. In the next 20 years, it will have the largest youth workforce globally and some of the world’s fastest-growing economies. The future will be driven by private sector investment—not development aid. That shift is already underway, and we’re supporting that transition.

In recent years, many NGOs in East Africa have downsized or shut down following donor withdrawals, including from USAID. What lessons can be drawn from this, and how can NGOs build resilience?

I hesitate to generalise about NGOs, as they each operate differently depending on their mission and context. Having run NGOs myself, I know how hard it is to secure sustainable funding. What we’re seeing now isn’t new, it’s a recurring challenge for NGOs everywhere. The key is to build resilience through diversification of funding and exploring more sustainable models. But ultimately, it’s a tough environment, and I feel for the organisations that have had to reduce or end their work.