Mining Services & Graphite Beneficiation Support JV Targeting Lindi/Mtwara Graphite Belt EV Battery Supply Chain

Tanzania is consolidating its position as East Africa's premier FDI destination, with GDP growth of 5.6% in 2024 projected to reach 5.9% in 2025 and 6.0% in 2026, driven by minerals, tourism, and agro-processing. FDI inflows grew to USD 1,656 million in 2024 per the Bank of Tanzania Investment Report 2025, while the TIC registered 842 projects worth USD 7.7 billion — the highest since 1991. The government is aggressively targeting USD 15 billion in annual FDI, pitching priority sectors of critical minerals, agro-processing, digital services, and renewable energy to global investors at UNGA 80. Key 2025 catalysts include: completion of the 50 MW Kishapu solar plant (first large-scale facility) with a 100 MW second phase planned; the TISEZA Act 2025 merging TIC and EPZA and streamlining strategic project permits; 'Blueprint 2' regulatory reform launched April 2025; and the FY2026-2027 national budget explicitly pivoting Tanzania from raw mineral exports to in-country beneficiation and value addition. A July 2025 licensing order restricting 15 business activities to citizens creates joint-venture imperatives for non-citizen investors. Risks include inconsistent tax administration, land tenure complexity, currency depreciation (TZS depreciated 6.3% in 2024), and a regulatory burden that consumes 14% of senior management time versus an 8% Sub-Saharan Africa average.

Tanzania's FY2026-2027 budget — released this week — places mineral beneficiation at the centre of economic strategy, and Vice President Mpango's UNGA 80 pitch in September 2025 explicitly named Mahenge graphite and Kabanga nickel as priority attractions for foreign capital. UN DESA separately confirmed Tanzania holds vast, underutilised graphite reserves that currently account for only a small fraction of global production, positioning Lindi/Mtwara graphite projects coming online in 2025-2026 as a ground-floor entry point into the EV battery supply chain.

Market drivers:

- Global EV battery demand is intensifying demand for battery-grade graphite; Tanzania's Lindi and Mtwara regions host high-purity flake graphite deposits with projects entering production phase

- New TISEZA Act 2025 mandates local content participation, opening JV opportunities for European investors to provide drilling, logistics, environmental management, and camp services

- Tanzania's Standard Gauge Railway expected to be fully operational for cargo by 2026, slashing logistics costs from interior graphite belts to Dar es Salaam port — the entry gateway for six landlocked countries

Risks:

- Regulatory predictability risk: Tanzania has a history of renegotiating mining contracts and introducing new royalties; investors must secure robust international arbitration clauses under the 2022 Investment Act

- Long project gestation (36-60 months) requires patient capital with strong liquidity reserves; early-stage FX exposure to TZS is significant