The Tanzanian government has called on local companies to increase their capacity and collaborate to take advantage of emerging opportunities in the mining sector. This push comes as 14 major mining projects are set to begin development, potentially expanding the country's mining procurement market, currently valued at approximately Sh5.1 trillion annually.
Speaking at the Ninth Mining Technology Exhibition in Geita, Minister for Minerals Anthony Mavunde emphasized the need for Tanzanian businesses to build their capacity to compete for larger and more specialized assignments. He noted that the 14 projects would create demand for various services, including engineering, equipment, explosives, technology, and maintenance.
The government aims to retain at least 90 percent of the Sh5.1 trillion spent by mining companies on goods and services within Tanzania. To achieve this, Mr. Mavunde encouraged local companies to move beyond routine supply contracts and develop the necessary financial and technical capacity to compete for more significant assignments.
The government is promoting partnerships among local companies to combine finance, equipment, technology, and expertise, enabling them to undertake major contracts. This strategy is expected to result in Tanzanian companies capable of establishing factories, acquiring advanced machinery, and participating in more technically demanding areas of mining.
The Mining Commission will audit companies operating through joint ventures with Tanzanian partners to ensure local shareholding is reflected in their operations, transactions, and benefits arising from contracts. This move aims to strengthen oversight of partnerships formed under local-content requirements and ensure Tanzanian participation translates into genuine commercial benefits.
The government is also increasing investment in geological exploration, with President Samia Suluhu Hassan approving the allocation of 10 percent of mining-sector collections to mineral exploration. This initiative aims to improve geological information and open up additional areas for development, potentially leading to increased mineral production and downstream economic activity.
The mining sector currently contributes about 10.3 percent to Tanzania's gross domestic product, with Tanzanians holding approximately 96 percent of over 19,000 formal jobs in the sector. The government aims to build on this progress, developing local companies capable of competing independently and eventually manufacturing, engineering, and servicing more mining-related products locally.
Key points
- The Tanzanian government is pushing local companies to scale up and collaborate to tap into growing mining opportunities.
- The country's mining procurement market is estimated to be worth approximately Sh5.1 trillion annually.
- The government aims to retain at least 90 percent of mining expenditure in Tanzania.
