Minerals

Tanzania is Africa's fourth-largest gold producer and holds substantial deposits of graphite, rare earth minerals, nickel, and uranium, positioning the country as a key supplier in the global transition to renewable energy technologies.

Mining and natural resources are significant contributors to the Tanzanian economy, with minerals grouped into three broad categories: metallic, industrial, and energy minerals.

Gold and diamonds have always been the mainstay of the country's mineral production, while emerging demand for battery minerals such as graphite and nickel is reshaping Tanzania's role in global value chains.

The sector is overseen by the Ministry of Mineral (MOM) and is designated as one of the strategic priority sectors under the National Development Vision 2050 and the Long-Term Perspective Plan (LTPP).

Mineral Endowment and Production Base

Tanzania's mineral endowment spans metallic, industrial, and energy minerals, providing a diversified extractive base for both domestic value addition and export.

Gold remains the leading commodity, with Tanzania ranking as Africa's fourth-largest gold producer.

Diamonds have historically formed, alongside gold, the mainstay of national mineral production.

Beyond these traditional commodities, the country holds substantial deposits of graphite, rare earth minerals, nickel, and uranium.

This portfolio of critical minerals aligns Tanzania with rising global demand for battery inputs and clean-energy technology feedstocks.

Minerals in Trade and Export Markets

Minerals rank among Tanzania's principal export commodities, alongside agricultural products and raw materials.

The country's largest trading partners beyond Africa are China, the United Arab Emirates (UAE), and India, and minerals feature prominently in these bilateral flows.

Under the African Growth and Opportunity Act (AGOA), which expired in 2025 but was extended until the end of 2028^[1], Tanzanian exports enjoyed duty-free access to the United States for a range of products.

Through the Everything But Arms (EBA) initiative, Tanzania also benefits from duty-free and quota-free access to the European Union for all exports except arms and ammunition.

Membership in the East African Community (EAC) and the Southern African Development Community (SADC) further facilitates cross-border trade in mineral commodities.

Strategic and Critical Minerals

The Long-Term Perspective Plan (LTPP) identifies critical minerals and rare metals, alongside natural gas and steel, as high-impact industries expected to drive Tanzania's industrial transformation.

Graphite and nickel are singled out as battery minerals whose global demand is rising sharply as the world transitions to renewable energy technologies.

Rare earth minerals and uranium add to the strategic character of Tanzania's mineral portfolio, expanding the country's relevance in advanced manufacturing and energy supply chains.

The push for beneficiation and downstream processing is central to capturing more value from these strategic resources domestically.

Policy Framework

Vision 2050 and Sector 5: Mining

Under the National Development Vision 2050, Mining is designated as Sector 5 among the strategic economic sectors.

The sector's mandate is to promote beneficiation, formalize artisanal activities, and expand the extraction of strategic minerals.

This positions mining not only as an extractive activity but as a platform for value addition and industrialization.

Mining Act and Licensing Regime

Under the Mining Act, the Minister may cancel or suspend a mineral license only if the holder fails to comply with statutory requirements or license conditions, such as drilling commitments, environmental and social obligations, or fee payments, after a formal notice of default is issued.

This rule-based framework provides predictability for investors and ensures that license cancellations follow due process.

Complementary protections under Tanzanian law guarantee fair, adequate, and prompt compensation in the event of expropriation, together with access to courts or arbitration and the right to repatriate funds in a convertible currency.

Alignment with the Long-Term Perspective Plan

The LTPP prioritizes foundational reforms and strategic investment in high-impact industries, with critical minerals and rare metals among the flagship categories driving industrial transformation.

Targeted measures include comprehensive regulatory reforms and the systematic formalization of the informal sector, of which artisanal mining is a significant component.

Investment Opportunities

Tanzania's mineral sector offers investors direct exposure to gold, diamonds, graphite, rare earth minerals, nickel, and uranium, spanning both established and emerging commodities.

Battery minerals, particularly graphite and nickel, represent a strategic growth window as global demand accelerates in line with the energy transition.

Downstream beneficiation is a headline opportunity: the Dodoma Mineral and Technological Valley is being developed as a high-technology ecosystem dedicated to mineral beneficiation, battery technologies, and advanced manufacturing.

The Great Lakes Smart Industrial and Blue Economy Mega Hub is planned as a regional center for mineral processing, agro-pharmaceuticals, blue economy industries, and cross-border trade facilitation.

The Liganga-Mchuchuma Integrated Iron and Steel Complex offers a further avenue for participation in domestic steel production, energy generation, and import substitution linked to mineral resources.

The formalization of artisanal mining, mandated under Vision 2050 Sector 5, opens opportunities for organized service providers, equipment suppliers, and financing partners.

Under the innovative financing framework of the LTPP, USD 183 billion is to be mobilized over five years across strategic sectors including mining, with the private sector expected to play a leading role.

Last Update: May 2026

References

1. https://www.congress.gov/bill/119th-congress/house-bill/6500 (Guide reference #28)