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Tanzania’s mining gains momentum as tax and royalty take rises

Mining-related tax and royalty revenue has more than doubled since 2021, helping expand the sector’s share of GDP to above 10% for the first time.

Reported · Written up by our desk · Mining

OilPrice traces Tanzania’s mineral wealth story back to the 1967 discovery of violet crystals in the Mereli Hills near Arusha, later marketed as tanzanite. The outlet notes that today the country is trying to rebalance benefits toward Tanzanians rather than external buyers controlling much of the trade historically.

Over the past two decades, Tanzania’s mining industry has grown rapidly and diversified, with minerals replacing tourism as the leading source of foreign currency in the mid-2000s. Since 2021, mining-related tax and royalty revenue has more than doubled, according to OilPrice.

OilPrice reports that gold exports rose 38.2% last year to a record $4.7 billion, and mining’s overall contribution to GDP passed 10% for the first time. The outlet also says mineral sands mining is underway at Fungoni-Kigamboni and Tajiri, with a new processing plant under construction.

Beyond gold, OilPrice points to additional minerals and new production infrastructure as part of Tanzania’s broader shift to capture more value from its geology. The article describes this as a change in how the country is positioning its mining sector for future revenue.

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