Tanzania's Mining Sector Booms on Gold Price Surge and Critical Minerals Rush
Tanzania's mining sector has experienced significant growth in recent years, with its contribution to the country's GDP increasing to 10.3% in 2025 from 7.8% in the previous year. This surge is attributed to favourable commodity prices and increased production at key mines, leading to a rise in mineral export earnings by 31% to $5.4bn.
The mining industry has become a crucial source of government revenue, with mining-related taxes, royalties, and levies increasing from 624.6bn shillings ($237m) in 2021/22 to an estimated 1.4 trillion shillings ($530m) in 2025.
The country's main large-scale gold mines are operated by foreign companies, including AngloGold Ashanti and Barrick Gold, which is also involved in the Bulyanhulu Gold Mine through a joint venture with the Tanzanian government. The Nyanzaga gold project, currently under construction, is expected to produce approximately 250,000 ounces of gold per year once operational.
Tanzania has positioned itself as a strategic source of critical minerals behind electric vehicles, magnets, batteries, and clean energy. The country holds an estimated 18m tonnes of graphite, roughly 6% of world reserves, along with other valuable resources such as rare earth elements, nickel, and helium.
The government is working to attract new investors through expanded geological surveys and has introduced regulations aimed at increasing local participation and ensuring more wealth remains in the country. However, there are concerns about regulatory clarity and the speed of project execution, which could impact the sector's growth.