Tanzania is undergoing a dramatic economic shift, fueled by a surge in its mining sector. What was once overshadowed by agriculture is now the nation’s leading source of foreign income, a transformation reshaping its financial future.
The scale of this change is ambitious: a national plan, “Mining Vision 2030,” aims to expand mineral exploration to cover half of Tanzania’s landmass. Currently, only 16 percent is actively explored, but a focused effort is underway to unlock the country’s vast, untapped potential.
This isn’t simply about expanding exploration; it’s about economic independence. The mining sector already contributes nearly 5 percent of Tanzania’s GDP, a figure projected to exceed 10 percent within the year. This growth is creating opportunities, with over 19,350 jobs established, overwhelmingly filled by Tanzanian citizens.
Gold is at the heart of this boom, now accounting for over 55 percent of the nation’s total exports. In the last year alone, gold exports generated between $4.4 and $4.7 billion, a remarkable increase of nearly 36 percent.
However, this prosperity arrives alongside a changing global landscape. Traditional foreign aid is dwindling, with nations like the UK and others in Europe reducing their financial commitments to Africa. This shift has prompted Tanzania to explore innovative solutions to fund critical infrastructure projects.
In a bold move, President Samia Suluhu Hassan has directed the central bank to consider selling a portion of the country’s gold reserves – currently valued at over $1.3 billion – to address these funding needs. This decision reflects a strategic pivot towards self-reliance.
To accelerate this progress, Tanzania has forged a significant partnership with South Korea. A new $16.5 million agreement will establish a cutting-edge mining technology center, equipping Tanzania with advanced tools and expertise.
This collaboration extends beyond technology. The partnership includes the creation of a joint digital mineral resource information system and a comprehensive Environmental, Social, and Governance (ESG) framework, ensuring responsible and sustainable mining practices.
Crucially, the agreement prioritizes capacity building, offering specialized training for small-scale miners, empowering local communities to participate in and benefit from the mining boom. This focus on local empowerment is a cornerstone of Tanzania’s vision.
The impact is already being felt throughout the Tanzanian economy. Local companies have secured $1.48 billion in contracts with mining operations, demonstrating the power of the private sector to drive growth and create opportunities.
Tanzania’s story is one of ambition, resourcefulness, and a determined pursuit of economic independence. By strategically leveraging its mineral wealth and forging key international partnerships, the nation is charting a course towards a prosperous and self-sufficient future.
