Tarehe : March 19, 2025, 9:07 a.m.

FOUR YEARS OF PRESIDENT SAMIA IN OFFICE:

TANZANIA – A MODEL FOR ARTISANAL AND SMALL-SCALE MINING IN AFRICA

By the Ministry of Minerals

Introduction

Tanzania has become a point of reference for other African nations seeking to learn about artisanal and small-scale mining (ASM) and the overall management of the mineral sector. This achievement is not coincidental but a result of strategic government interventions under the Sixth Phase Administration, which include strengthening regulations, formalizing small-scale mining activities, decentralizing mining services, and promoting transparency in mineral trade.

These reforms have attracted several African countries, such as Uganda, Kenya, Zimbabwe, Burundi, Malawi, the Democratic Republic of Congo, and Zambia, to visit Tanzania to study how the country effectively manages the ASM sector.

The government has facilitated small-scale miners by establishing mineral markets, providing drilling equipment, improving electricity and road infrastructure, launching targeted mining programs, connecting miners to financial institutions, and issuing mining licenses. This article highlights the results of these efforts, which have positioned Tanzania as a model for other nations.

Mineral Markets

To enhance transparency and ensure fair trade for small-scale miners, the government established mineral markets and buying centers. These markets have increased price transparency, provided secure trading spaces, and boosted government revenue from minerals.

For instance, between the 2021/22 and 2023/24 financial years, mineral sales in these markets grew from TZS 2.361 trillion to TZS 2.597 trillion. Since the initiative began in 2019, Tanzania has established 43 mineral markets and 109 buying centers across the country.

Mining Licenses

The Mining Commission has issued 41,424 mining licenses, exceeding the targeted 37,318 within four years of the Sixth Phase Administration, achieving 111% of the target. These licenses include permits for large-scale, medium-scale, and small-scale mining operations.

Mining Areas Allocation

To ensure broader participation of Tanzanians in the mineral economy, the government has allocated 58 areas specifically for small-scale mining. These areas are designed to provide an enabling environment for miners to operate efficiently.

Electricity Access for Small-Scale Miners

Electricity is crucial for mining operations. Recognizing this, the government has invested in extending power infrastructure to mining areas. By 2023, over 350 small-scale mines were connected to electricity, significantly improving mining efficiency and production.

Drilling Equipment for Small-Scale Miners

To enhance efficiency, on October 21, 2023, President Dr. Samia Suluhu Hassan launched five (5) state-of-the-art drilling machines for small-scale miners, along with additional mining equipment worth TZS 9.18 billion.

These machines provide essential geological data, eliminating guesswork in mining operations. So far, 23 miners have benefited from drilling services, covering a total depth of 6,929 meters. Additionally, the government plans to acquire 10 more machines, prioritizing female and youth miners.

Model Mining Centers: Boosting Revenue and Encouraging Local Mining

The government has established Model Mining Centers in key mining regions to provide training on efficient mining and processing techniques. These centers have empowered miners with knowledge, increasing productivity and government revenue through taxation.

For instance, Fortunatus Luhemeja, Director of Hexad Company, credits his company’s growth to the skills acquired at the Lwamgasa and Katente training centers in Geita. Similarly, veteran miner Christopher Kadeo, with over 40 years of experience, acknowledges the transformative impact of these centers.

The Katente Center in Mbogwe Region has significantly boosted local revenue collection. In the 2021/22 financial year, Mbogwe collected TZS 21.3 billion, increasing to TZS 22.4 billion in 2022/23, and reaching TZS 27.1 billion in 2023/24.

Financial Institutions Supporting the Mining Sector

One of the main challenges faced by small-scale miners is access to capital. To address this, the State Mining Corporation (STAMICO) has signed agreements with major banks, including CRDB, KCB, and NMB, to provide loans to small-scale miners.

Between July 2023 and March 2024, banks disbursed TZS 187 billion in mining loans, up from TZS 145 billion in 2022. Additionally, STAMICO has partnered with the Tanzania Geological Survey (GST) to provide geological data that increases financial institutions' confidence in lending to miners.

Increase in Government Revenue from Small-Scale Mining

Government efforts to formalize and regulate small-scale mining have significantly increased its contribution to national revenue. Prior to the Mining Act amendments, small-scale mining contributed only 4% of total government mineral revenue. Today, this figure has risen to 40%.

Special Program: Mining For Brighter Tomorrow (MBT)

To further integrate Tanzanians into the mineral economy, the Ministry of Minerals is developing the Mining For Brighter Tomorrow (MBT) Program, focusing on empowering women and youth miners. The program aims to facilitate access to mining licenses, equipment, vehicles, and drilling machinery.

By increasing participation in mining, the program seeks to drive sectoral growth, boost national revenue, and create more job opportunities.

Conclusion

The Tanzanian government continues to improve the small-scale mining sector through infrastructure development, legal reforms, and financial support.

Drilling machines, model training centers, and banking partnerships have empowered miners to increase production and revenue. These advancements have positioned Tanzania as a leading example in the African mining industry, attracting interest from other nations seeking to replicate its success.

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by: madini