Tanzania Top Investment Destination for Major Mining Australian Companies

Tanzania emerged as the top destination for Australian mining investments in Africa, capturing 21% of the continent’s total investment from major Australian mining companies.

The Ministry of Mining of Tanzania indicates that the data was disclosed at the Africa Down Under (ADU) conference held in Perth, Australia, on 4^th-6^th September 2024.

ADU is the leading forum for Australian-African business and government relations and was first launched to raise awareness of Australia’s mining and energy interests in Africa.

The three-day meeting has evolved to become the largest African-focused mining event held outside the continent, bringing together mining stakeholders from Australia and African nations.

During the opening session, Tanzania’s Minister of Minerals Hon. Anthony Mavunde, speaking on behalf of Tanzania’s President Dr. Samia Suluhu Hassan, said that mining contracts signed in the past two years with Australian mining companies are valued at over TZS 10 trillion (USD 3.6 billion).

Minister Mavunde emphasized the importance of these companies honoring their commitments, particularly in Corporate Social Responsibility (CSR), local procurement, and the payment of appropriate taxes and fees to ensure these resources contribute meaningfully to Tanzania’s development.

For his part, Tim Watts, the Assistant Minister for Foreign Affairs of Australia, highlighted the importance of the meeting and also presented a video message from Hon. Penny Wong, the Minister of Foreign Affairs, pointing out the importance of the conference and Africa in general.

In a recent press release, Watts disclosed that Australian mining companies now invest an estimated USD 60 billion in Africa and trade between Australia and African countries has grown rapidly, reaching USD 11 billion in 2023.

Tanzania Mining Sector

The mining sector’s contribution to Tanzania’s Gross Domestic Product (GDP) rose to 10.9% in the July-September 2023 quarter, up from 9.5% in the same period of 2022.

Meanwhile, the growth rate of the mining sector reached 10.2%, from 9.6%, and mining tax revenue increased by 50%, rising from TZS 2.1 trillion in 2022/23 to TZS 3.1 trillion in 2023/24.