Tanzania’s Mining Tax Revenue Soars 20.7% in 2023/2024

According to recent data disclosed by the Tanzanian Mining Commission, in the three years since President Samia Suluhu Hassan took office, the mining sector has experienced remarkable growth, driven by enhanced regulatory frameworks, increased local participation, and better management practices.

This was disclosed by Engineer Ramadhani Lwamo, Acting Executive Secretary of the Mining Commission, at a press briefing on October 24, 2024, in Dar es Salaam.

He outlined key achievements in revenue collection, job creation, and the overall performance of the sector, and highlighted several milestones.

Over the past three years, the mining sector has seen a 20.7% increase in revenue collection, rising from TZS 624.61 billion in the 2021/2022 financial year to TZS 753.82 billion in 2023/2024.

This year (2024), the Commission is on track to meet its revenue target, with TZS 312.75 billion already collected by October 21, 2024, which is 31.28% of the target set for the 2024/2025 fiscal year (TZS 1 trillion).

The mining sector’s contribution to Tanzania’s GDP has also grown significantly, from 7.2% in 2021 to 9.0% in 2023.

Projections suggest that the sector will exceed 10% of the GDP by 2025, in line with the goals outlined in the National Development Vision 2025.

This increase is attributed to better management practices, increased investments, and more rigorous regulatory enforcement.

Key Sector Achievements

• Increased Revenue from Mineral Sales: The 2023/2024 financial year saw mineral sales rise to TZS 2.59 trillion, generating TZS 180.13 billion in government revenue, an increase from the previous year’s TZS 2.36 trillion and TZS 164.09 billion in government revenue. These earnings come from royalties and inspection fees.
• Job Creation and Local Participation: The sector has created tens of thousands of jobs for Tanzanians, with 18,853 Tanzanians employed in mining companies, representing 97.4% of all mining jobs. Tanzanian-owned companies have also made significant contributions to the economy, with local firms selling USD 3.47 billion worth of products, accounting for 91.7% of the total sales in the industry.
• Licensing and Investment: The Mining Commission has issued a total of 34,348 licenses from 2021 to 2024, out of the planned 37,318, across various mining activities. These include licenses for large-scale mining projects, such as those awarded to Faru Graphite Corporation and Mamba Minerals Corporation, both of which are set to make substantial investments in Tanzania’s mining sector.
• Regulatory and Sustainability Efforts: The Commission has ramped up efforts to ensure the sustainability of the sector, with an emphasis on environmental protection, worker safety, and compliance with health standards. In 2024 alone, the Commission conducted 144 inspections at medium-sized mines and over 47,500 inspections at small-scale mines, focusing on safe mining practices and environmental sustainability.
• Local Content and Inclusion: As part of its commitment to increasing local participation in the mining sector, the Commission has reviewed 1,050 Local Content Plans (LCPs) from mining companies, with 1,036 of these meeting the required standards. This ensures that Tanzanians benefit more directly from the country’s mineral wealth.

Tanzania’s Mining Revenues and Tax Collection: Latest Stats

The mining sector’s growing contribution to the national economy is also evident in the revenue and tax collection statistics:

• Mining Revenue: In the 2023/2024 fiscal year, the Mining Commission collected a total of TZS 753.82 billion, compared to TZS 677.7 billion collected in 2022/2023 (+8.6%). The target for 2024/2025 is set at TZS 1 trillion, with TZS 312.75 billion already collected by October 2024.
• Taxes and Royalties: Mineral sales in 2023/2024 totaled TZS 2.59 trillion, with the government collecting TZS 180.13 billion in taxes and royalties, a 7.7% increase from the previous year’s TZS 164.09 billion.
• Job Creation: The mining sector continues to be a major source of employment in Tanzania. In 2024, 18,853 Tanzanians were employed in mining companies, making up 97.4% of the total workforce in the industry.
• Mining Licenses: Between 2021 and 2024, the Mining Commission issued 34,348 mining licenses, achieving 92% of its target of 37,318 licenses. These licenses cover a wide range of mining activities, including large-scale, medium-scale, and small-scale mining operations.