Minerals share in GDP to hit 10 per cent by 2025

Arusha. Minerals will contribute ten per cent of the country's Gross Domestic Product (GDP) by 2025 given the current growth trend.

The sector's contribution to the national cake romped to 5.07 per cent in 2015 from about 3.5 per cent in 2010, thanks to the all-round reforms taken.

"Our target is to ensure minerals' contribution to the GDP reaches 10 per cent by 2025", said the minister for Minerals Dotto Biteko.

He said this when officially inaugurating the minerals auction centre in Arusha that the reforms taken by the government in recent years have boosted the sector.

"Small scale miners are now paying tax. They are operating legally and there are no cases of further harassments", he said.

The minister said the Mining Act (Act No. 4 of 2010) amended in 2017 recognizes contribution of the small scale miners for the sector's growth.

Due to a raft of reforms, government revenues from the minerals have more than tripled in various segments, with the sales from the small scale miners now making impact.

Among the incentives taken to motivate the small scale miners was the scrapping of the Value Added Tax (VAT) on the mineral exports and five per cent withholding tax.

The minister said the government revenue collections shot up sharply to Sh. 196billion in 2017, rising to Sh. 265bn last year with Sh. 310bn projected this year.

The Arusha minerals buying centre, located along the Old Moshi Road in the leafy suburb of the city, is set to accommodate authorized mineral dealers.

The facility is already hosting 17 out of nearly 100 licensed mineral dealers in Arusha, including the gemstone miners who have scattered sales points around the city.

Mr. Biteko ordered that the other dealers should relocate to the new outlet in two weeks' time, warning those who would defy the order would face music.

Speaking during the event, the Arusha Regional Commissioner Mrisho Gambo said the facility would serve firms mining tanzanite at Mererani in neighbouring Manyara region.

The centre would have offices for the zonal mines department and the Tanzania Revenue Authority (TRA) and a police station, among others.

"This will be a 'one stop centre ' with all the necessary facilities. This will cut down bureaucracy and the cost of traveling to Dodoma to process mineral exports", he said.

He added that the facility has been upgraded to attract mineral buyers from abroad, taking the advantage of Arusha tourism and conference hub.