Presenting the 2026/27 national budget to Parliament on Thursday, Finance Minister Ambassador Khamis Mussa Omar said the proposed fund would be financed through the retention of 10 per cent of the Ministry of Minerals’ gross mineral revenue collections.
Under the proposal, the funds will be deposited into a special account at the Bank of Tanzania, with all expenditures subject to approval by the Paymaster General.
The initiative forms part of the government’s wider strategy to promote strategic investments and develop a modern, large-scale economy built around Tanzania’s abundant mineral and energy resources.
Amb Omar said the government intends to accelerate investment in industries linked to key resources, including rare earth minerals, natural gas, iron ore and coal, which are considered critical to the country’s long-term industrial and economic transformation agenda.
In a separate measure aimed at increasing transparency and formalising trade, the government has proposed making bank accounts mandatory for traders operating in the minerals, livestock, agricultural produce, timber and fisheries sectors.
Under the proposal, institutions responsible for issuing business permits and licences in those sectors would be required to ensure applicants maintain designated bank accounts through which all business transactions are conducted.
Officials say the measure is intended to improve financial accountability, strengthen revenue collection and enhance oversight of commercial activities in key productive sectors of the economy.
The government has also proposed amendments to the Income Tax Act and the Value Added Tax (VAT) Act to recognise VAT exemption provisions contained in framework agreements signed between the government and mining investors, subject to Cabinet approval.
According to Amb Omar, the changes are intended to facilitate the implementation of joint mining ventures and provide greater certainty for investors involved in large-scale resource projects.
The minister said the proposal would enable the government to honour commitments made under existing agreements, support the timely implementation of strategic mining investments and contribute to broader national development objectives.
To improve transparency and consistency, the government plans to introduce regulatory guidelines governing the granting of tax exemptions under such agreements.
Meanwhile, the budget proposes a new export levy on quartz and feldspar minerals, set at 10 per cent of export value or 200 Tanzanian shillings per kilogramme, whichever is higher.
The measure is designed to encourage domestic processing by ensuring adequate supplies of raw materials for local marble and glass manufacturing industries.
Government estimates indicate that the levy could generate approximately 6.08 billion Tanzanian shillings in additional revenue while supporting the development of downstream mineral-processing industries.
The proposed measures underscore Tanzania’s growing focus on resource-based industrialisation, value addition and stronger management of its mining sector as the country seeks to leverage its mineral wealth to drive long-term economic growth.
Notes to Editors
– The proposed Mineral Research Fund will be financed through the retention of 10 percent of gross mineral revenue collections generated by the Ministry of Minerals.
– Funds will be deposited into a dedicated account at the Bank of Tanzania, with expenditures subject to approval by the Paymaster General.
– The initiative is intended to strengthen geological research, mineral exploration, innovation and value-addition activities across the mining sector.
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