Tanzania: Mining Investment Agenda 2026 Drives Record Growth

• Tanzania's mining sector has transformed into a primary economic engine, with government revenue growing from 526bn/- in 2020/2021 to over 1.4tri/- by 2025/2026.
• The nation's policy prioritizes mineral beneficiation, aiming to shift from raw material exports to finished product manufacturing, as articulated by President Dr. Samia Suluhu Hassan.
• Foreign Direct Investment in mining increased from $9.15 billion in 2023 to $9.79 billion in 2024, reflecting enhanced investment attractiveness and overall FDI growth.
• Revised 2018 Mining Regulations have significantly boosted local content, with Tanzanians holding over 97% of mining jobs and local purchasing reaching 88% by 2024.
• Strategic agreements, such as with Panda Hill Tanzania Limited for niobium production, underscore the country's focus on critical minerals essential for global green energy transitions.

Tanzania's national policy is unequivocally geared towards transitioning from a mere producer of raw materials to a sophisticated manufacturer of finished products, maximizing returns from its extensive mineral wealth.

Tanzania's mining sector has undergone a significant transformation, evolving into a primary driver of the nation's economic growth. This strategic shift has unlocked record-breaking investment and revenue, positioning the country as a key player in the global minerals race, aligning with the ambitious Tanzania mining investment agenda 2026. Government revenue from mining surged from 526 billion Tanzanian shillings in the 2020/2021 fiscal year to over 1.4 trillion Tanzanian shillings by 2025/2026, exceeding the annual target by 16 percent.

The sector's contribution to the Gross Domestic Product (GDP) also saw substantial growth, rising from 9.1 percent in 2023 to a record 10.1 percent in 2024, and subsequently averaging between 11.9 percent and 12 percent. This robust performance underscores the sector's increasing importance to the national economy. Minister for Minerals Anthony Mavunde, while presenting his docket's 2026/27 budget estimates in the National Assembly in Dodoma, highlighted the vast opportunities available to investors.

Minister Mavunde emphasized that Tanzania is no longer solely defined by its gold production, asserting its role as a future leader in the global green energy transition. He noted that the country's regulatory environment is optimized for both profitability and security, a factor that contributed to the Fraser Institute ranking Tanzania fourth in Africa for investment attractiveness. This positive outlook is further supported by the substantial Tanzania mining sector FDI growth, with total Foreign Direct Investment (FDI) stock in the mining sector climbing from $9.15 billion in 2023 to $9.79 billion in 2024. Overall FDI into the country also increased significantly, reaching approximately $5 billion in 2025 from nearly $3 billion in 2021.

President Dr. Samia Suluhu Hassan has clearly articulated Tanzania's mining ambitions to the international business community, designating mining and mineral beneficiation among the country's top five investment priorities. Speaking at the St Petersburg International Economic Forum in June 2026, President Hassan outlined a clear national policy: to steadily transition from being a producer of raw materials to a manufacturer of finished products, thereby maximizing returns from Tanzania's extensive mineral wealth. She extended an invitation to investors to establish processing industries and industrial parks that support mineral beneficiation, signaling that Tanzania is open for business and receptive to new ideas and innovation.

While gold remains a traditional economic cornerstone, generating $4.75 billion in export earnings in 2025, the strategic focus has broadened considerably. Tanzania possesses world-class deposits of critical minerals vital for electric vehicles and renewable energy technologies, including significant reserves of nickel, graphite, cobalt, lithium, and rare earth elements. This presents a compelling landscape for Tanzania critical minerals investment.

Specific projects are already advancing this agenda. Lifezone Metals is progressing with the Kabanga Nickel Project, which boasts over 209 million tonnes of proven nickel deposits. Similarly, Australian explorers like Volt Resources were progressing the Bunyu Graphite Project, but its mining licences are facing cancellation by Tanzania's Ministry of Minerals, further demonstrating the commitment to the Tanzania mineral beneficiation policy.

In a move to empower its citizens and foster domestic economic participation, the Tanzanian government has implemented significant revisions to its 2018 Mining Regulations. These updates are designed to ensure that employment and procurement opportunities primarily benefit Tanzanian nationals and businesses. The impact of these Tanzania mining local content regulations has been substantial and measurable.

The number of Tanzanians employed in the mining sector has seen a dramatic increase, rising from 6,668 in 2018 to over 18,800 by 2024, now accounting for more than 97 percent of all mining jobs. Concurrently, local purchasing within the sector has also grown significantly, from 62 percent in 2018 to 88 percent by 2024. Anicet Rwekaza, a Mwanza-based Logistics Consultant, highlighted the tangible effects of this policy, noting that strict local content enforcement under President Dr. Samia's administration has enabled Tanzanian firms to manage complex global supply chains, operate heavy machinery, and secure multi-million-dollar subcontracts.

Further solidifying its position in the global critical minerals market, the Tanzanian government has entered into a landmark agreement with Panda Hill Tanzania Limited. This partnership aims to accelerate the production of niobium, a strategic metal crucial for strengthening steel and producing high-performance alloys. The Panda Hill Tanzania niobium project exemplifies the nation's proactive approach to developing its strategic mineral resources.

Dennis Cook, General Manager for Panda Hill, confirmed the company's intention to secure a Special Mining Licence and update key project work-streams to reflect current conditions. This project is also projected to contribute significantly to local content, with Panda Hill anticipating 70 percent local content for Tanzanian businesses, further aligning with the government's broader economic empowerment goals and contributing to sustained Tanzania mining sector FDI growth.

Lawyers advising on Tanzanian mining investments must scrutinize the updated regulatory environment, particularly regarding critical minerals, local content requirements, and the government's push for mineral beneficiation, to ensure compliance and identify new opportunities for clients.

Source: Original reporting via industry insights