Tanzania sets out minerals revenue, export and

Tanzania is positioning itself as Africa's next minerals powerhouse, moving beyond raw commodity exports toward value-added processing. The government's newly unveiled minerals revenue, export, and value-addition roadmap for 2026/27 signals a strategic pivot that could reshape East Africa's mining landscape and attract billions in downstream manufacturing investment.

## What does Tanzania's minerals strategy actually target?

The 2026/27 plan prioritizes three concurrent objectives: maximizing hard-currency earnings from existing mineral exports, expanding production capacity across gold, tanzanite, and emerging lithium deposits, and establishing domestic processing infrastructure to capture higher margins. Rather than exporting raw ore, Tanzania aims to process minerals locally—a model that increases employment, tax revenue, and foreign exchange retention by 30-50% per unit compared to unrefined exports.

Gold remains the anchor commodity. Tanzania is Africa's fourth-largest gold producer, with proven reserves exceeding 45 million ounces. The strategy includes licensing new large-scale operations in the Lake Victoria goldfields while fast-tracking artisanal miner formalization programs to reduce smuggling and boost official export volumes. Tanzanite—mined exclusively in Tanzania's Merelani Hills—represents a branding opportunity; the government plans to establish a domestic cutting and polishing hub in Dar es Salaam, converting 70% of raw tanzanite into finished jewelry by 2027.

The wildcard is lithium. Tanzania holds Africa's third-largest lithium reserves, estimated at 27+ million tonnes. Global EV battery demand is projected to grow 20% annually through 2030, and early mining permits in the Iringa and Mbeya regions could unlock $8-12 billion in cumulative foreign direct investment if infrastructure and regulatory clarity materialize.

## Why is value-addition critical for Tanzania's economy?

Raw mineral exports are vulnerable to price volatility and offer limited employment. A single gold mine typically employs 2,000-4,000 workers; a processing hub employs 15,000+. By keeping minerals in-country longer, Tanzania retains jobs, technical expertise, and downstream tax revenue. South Africa's integrated mining-to-manufacturing model generates 3x the GDP multiplier effect versus pure extraction economies. Tanzania is studying this model to diversify beyond agriculture (which represents 25% of GDP) and reduce dependency on volatile commodity cycles.

## How will the government finance and execute this plan?

The roadmap hinges on three mechanisms: (1) mandatory domestic processing quotas embedded in new mining licenses; (2) concessional financing from development banks like the African Development Bank and IFC for processing infrastructure; and (3) public-private partnerships with international mining houses (Barrick Gold, Tanzanite Foundation members) to co-invest in refineries. Tanzania's mining tax regime—recently reformed to attract investment—offers 6% royalties and 30% corporate tax, competitive within East Africa.

Execution risks are material. Power supply remains constrained; processing facilities demand 50-100 MW. The government must upgrade port facilities in Dar es Salaam and invest $1.2-1.8 billion in refinery infrastructure over 24 months. Regulatory consistency and anti-corruption enforcement will determine whether global capital materializes.

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