The achievement marks a significant transformation for a sector that accounted for only 3.5 percent of GDP in 2008 and was once considered a relatively minor pillar of the economy.

Government officials say the sector’s rapid expansion reflects nearly two decades of regulatory reforms, increased investment and a strategic shift toward value addition and industrialisation.

Revenue collections from the mining sector have also surged, surpassing one trillion Tanzanian shillings for the first time during the 2024/25 financial year.

According to Minister for Minerals Anthony Mavunde, mining revenues reached 1.07 trillion shillings, while collections by March this year had already exceeded the annual target with several months remaining in the fiscal year.

Tanzania’s Vision 2025 framework had set a national goal for mining to contribute at least 10 percent of GDP by 2025, at a time when the sector was largely dominated by raw mineral exports and limited domestic processing.

Officials say the sector is now undergoing a broader structural transformation under the government’s Third Five-Year Development Plan, which prioritises local mineral processing, industrial linkages and strategic mineral development.

Deputy Minister for Minerals Steven Kiruswa said the sector has evolved beyond extraction to become an important driver of national development.

“It is no longer just about extraction; it is about national development,” Kiruswa said.

Gold remains Tanzania’s leading mineral export, accounting for about 90 percent of total mineral exports.

Supported by high international gold prices, mineral export earnings reached approximately 4.7 billion US dollars in 2025, strengthening Tanzania’s foreign exchange reserves and surpassing tourism as the country’s leading source of foreign currency earnings.

The Bank of Tanzania has also increased gold purchases as part of efforts to diversify national reserves and support long-term monetary stability.

At the same time, the government is seeking to diversify the sector through investments in critical minerals needed for the global energy transition, including nickel, graphite, rare earth elements and niobium.

Among the flagship projects is the Kabanga Nickel Project, which is advancing toward production using low-carbon processing technology.

Other strategic projects include the Epanko graphite project and the Ngualla rare earth development, both expected to strengthen Tanzania’s role in global clean energy and advanced manufacturing supply chains.

In March this year, Tanzania signed an agreement for the Panda Hill niobium project in Songwe Region, involving an initial investment of 442 million US dollars.

Officials estimate the project could account for around four percent of global niobium production while generating more than two trillion shillings through taxes, royalties and dividends, in addition to creating thousands of jobs.

The government’s push for value addition is also reshaping the sector, with seven mineral processing plants now operational and additional refining facilities under development in Mwanza, Geita and Dodoma.

Authorities say the objective is to reduce exports of raw minerals and retain greater economic value within the country.

Local participation in the industry has also expanded significantly.

According to government figures, Tanzanians now account for 97 percent of employment in the mining sector, while local procurement has risen to 88 percent.

The Mining Commission has additionally allocated mining areas specifically for young Tanzanian investors as part of efforts to broaden domestic ownership and participation.

Despite the sector’s strong growth, industry stakeholders say several structural challenges remain, including inadequate infrastructure, high energy costs, limited access to affordable financing and dependence on gold exports.

Officials also acknowledge persistent challenges facing artisanal and small-scale miners, including limited access to modern technology, geological data and capital.

To address these gaps, the government has launched the Mining for a Brighter Tomorrow programme, expanded geological surveys and invested in modern drilling equipment and mineral laboratories.

Analysts say sustaining momentum under Tanzania’s upcoming Vision 2050 agenda will require deeper industrialisation, expanded mineral processing capacity and stronger integration into global battery, electronics and green energy supply chains.

While the sector has already exceeded one of Tanzania’s most ambitious development targets, policymakers say the next challenge will be ensuring mineral wealth translates into broad-based industrial growth, employment creation and long-term economic transformation.

Notes to Editors

· Tanzania’s mining sector contributed 10.1 percent of GDP in 2024, surpassing the national target set under Tanzania Development Vision 2025 one year ahead of schedule.

· The sector’s contribution to GDP has increased significantly from 3.5 percent in 2008, reflecting sustained reforms, investment growth and policy interventions.

· Mining revenue collections exceeded TZS 1 trillion for the first time during the 2024/25 financial year, reaching approximately TZS 1.07 trillion.integration, industrialisation and improved living standards across Africa.

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