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Tanzania eyes $11.7 billion from value addition in mineral sector
What you need to know:
- As Africa’s fourth-largest gold producer, contributing two percent to the global supply, Tanzania’s mining sector currently accounts for 10.1 percent of the GDP and supports more than six million jobs.
Dar es Salaam. Tanzania has the potential to generate up to $11.7 billion in annual revenue and create over 25,000 jobs by enhancing value addition in its mineral sector.
This insight comes from a new report developed under the UK-funded Manufacturing Africa programme in collaboration with the ministry of Minerals.
The report suggests that Tanzania’s mineral sector is at a crucial juncture. With appropriate policy frameworks, targeted investments, and strategic partnerships, the country could leverage its vast reserves of strategic and critical minerals to drive economic growth and industrial development.
As Africa’s fourth-largest gold producer, contributing two percent to the global supply, Tanzania’s mining sector currently accounts for 10.1 percent of the GDP and supports more than six million jobs.
The analysis identifies 14 high-potential value addition opportunities across 11 minerals, including gold, limestone, phosphate, graphite and rare earth elements.
Gold, in particular, presents a significant immediate opportunity for value addition; refining and jewellery manufacturing could potentially yield up to $7.5 billion annually.
Other industries such as cement, ceramics, and glass are also noted for their scalability, driven by strong local demand and the availability of resources.
Additionally, graphite and rare earth elements are highlighted as promising areas with global implications. With six percent of the world’s graphite reserves, Tanzania is poised to become one of the top three global producers within five years. Graphite is essential for manufacturing lithium-ion batteries used in electric vehicles and renewable energy storage.
Furthermore, Tanzania’s rare earth elements are critical for producing high-performance magnets used in electric motors and wind turbines. There are also opportunities for processing fertilisers, copper, and cobalt, although these depend more heavily on global market dynamics and require longer-term investment.
Minister for Minerals Anthony Mavunde expressed support for the report’s findings, stating that they align with the government’s Critical and Strategic Minerals Strategy. He highlighted the government’s commitment to increasing the proportion of mapped territory from 16 percent to 50 percent by 2030 to facilitate sustainable exploration and resource extraction.
“As the government develops its strategy and attracts new investments into the sector, this analysis is timely and relevant. Through our comprehensive approach to upstream and downstream mining, Tanzania is emerging as a significant global player in energy transition minerals,” Mr Mavunde said.
The report, based on over 50 interviews and stakeholder workshops, provides a detailed roadmap for enhancing mineral processing and downstream industries. It stresses the importance of focusing on proven high-return areas while gradually building capabilities in more complex sectors.
Tanzania’s High Commissioner to the UK, Mbelwa Kairuki, described the report as a milestone in the Tanzania–UK Mutual Prosperity Partnership, emphasising a shared commitment to inclusive and sustainable economic development.
British High Commissioner to Tanzania, Marianne Young, added that the findings provide valuable insights into how local value addition can unlock investment, enhance government revenues, create job opportunities, and strengthen domestic industries. “Tanzania’s mineral sector is entering an exciting new phase—one that promises not only inclusive economic growth
