World Bank Grants USD 45 Million To Develop Tanzania Mining Sector

The World Bank (WB) recently approved to grant USD 45 million to improve the socioeconomic impacts of Tanzania large and small-scale mining.

According to WB the financing would build on the success of the ongoing Sustainable Management of Mineral Resources Project (SMMRP), which is undertaken by the government to manage, improve the regulatory framework, expand the country coverage by geological surveys and enhance the social and environmental management framework for the Tanzanian mining sector.

This additional support aims at poverty reduction in Tanzania by encouraging the formalization and sustainable development of artisanal and small-scale mining (ASM) which will boost local entrepreneurship and employment in mining.

The project involves identifying suitable geological areas for artisanal miners, training and establishing demonstration and training centers for ASM to build skills in faceting, carving and jewelry.

The project will focus on the technical, financial, organizational and environmental constraints of ASM.

Mr. Philippe Dongier, Country Director for World Bank Tanzania said that this initiative shows World Bank’s commitment to support Tanzania’s efforts to allocate mining resources equitably by focusing on ASM.

The move will also help attract private, local, and foreign investments, says WB.

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. The mineral sector in Tanzania includes both small scale operations and large scale mechanised mining.

The mining sector contributes 2.8% to Tanzania GDP.