Kahama Industrial Park: Tanzania’s next mining services powerhouse

Shinyanga. Minerals Minister Anthony Mavunde said the special industrial park established at the former Buzwagi gold mine site in Kahama District, Shinyanga Region, will become a major hub for supplying mining products and services across the Southern African Development Community (Sadc) region.

At the park, more than 15 factories producing mining-related products are expected to be established, with over 30 investors having expressed interest in investing in various sectors.

This move aims to stimulate the economy at the individual, regional, and national levels.

Three explosives factories are set to be constructed in the first phase to support both large-scale mines and small-scale miners, given the critical importance of such products to the sector.

Mr Mavunde made these remarks on Monday, December 22, 2025, during his visit to inspect the Buzwagi industrial park area in Kahama District.

He said the government’s objective is to ensure that money currently spent on importing mining products and services remains within the country and directly benefits Tanzanians, while also attracting more foreign investors.

The minister said more than Sh5.1 trillion is spent annually on importing mining products and services from abroad, an amount that exceeds the taxes collected from the mining sector.

“In the mining sector, our goal is to make Kahama a hub for the provision of mining services and products south of the Sahara, not only for Tanzania. Kahama will undergo economic transformation, together with the nation as a whole,” he said, adding:

“A large percentage of mines in Tanzania have for years been importing many products and services from outside the country. There is a huge opportunity here. Annual procurement of services for all mines in Tanzania exceeds Sh5.1 trillion, more than the revenue we collect in taxes from these mines.”

He noted that the Buzwagi mine had been a catalyst for Kahama’s development and economic growth, and that its closure could have destabilised the district’s revenue base.

However, the establishment of the industrial park is expected to benefit residents through employment opportunities and expanded economic activities.

For more than 16 years, the Kahama Municipal Council relied on revenue from the Buzwagi gold mine, which is currently in its closure phase, with the area now being repurposed into a special industrial park.

The Tanzania Investment and Special Economic Zones Authority (TISEZA) Director General, Mr Gilead Teri, said the investment has begun to attract major local and foreign companies, some of which have already signed agreements to commence production activities within the area, where licensing procedures are being properly managed.

He said: “Any investor who applies to an investment plot at the Buzwagi Industrial Park will be issued with a licence within 24 hours. The aim is to make Buzwagi a business hub due to its proximity to the Democratic Republic of Congo (DRC), Rwanda, Burundi, and Uganda.”

Shinyanga Regional Commissioner, Ms Mboni Mhita, said the Buzwagi area, which covers 1,333 hectares, already has good infrastructure, reliable electricity supply, and sufficient water sources, making it a major opportunity for Tanzanians to invest.

“We are fully prepared to ensure this industrial park succeeds and becomes a model. We are putting in place an enabling environment, infrastructure is ready, and we continue to encourage citizens to come and invest here, giving them priority,” she said.