DAR ES SALAAM. Tanzania’s mining sector continues to dominate foreign direct investment (FDI), reinforcing its status as the country’s largest destination for international capital as investors deepen exposure to gold, graphite, and strategic minerals linked to global industrial demand.
Recent figures confirm mining and quarrying remain the leading recipients of foreign investment, with FDI stock reaching USD 9.79 billion in 2024, up from USD 9.15 billion in 2023 and USD 8.64 billion in 2022. The sector accounts for nearly three‑quarters of foreign investment concentrated in Tanzania’s major productive industries.
Gold Continues Driving Capital Flows
Gold remains the backbone of Tanzania’s mining economy. Elevated international prices continue to strengthen project economics and export earnings. Mineral exports climbed to USD 5.4 billion in 2025, with gold accounting for nearly USD 4.75 billion, reflecting strong international demand and sustained production activity.
Expansion of existing operations and reinvestment by established mining firms have played a major role in sustaining FDI growth. Officials say supportive sector reforms and improved investment conditions are encouraging both new entrants and expansion of existing projects.
Critical Minerals Expand Strategic Importance
Beyond gold, investor attention is increasingly shifting toward Tanzania’s portfolio of critical minerals including graphite, nickel, rare earths, lithium‑associated minerals, and niobium.
Graphite reserves are particularly attractive given their role in lithium‑ion battery production. The government has signalled greater focus on strategic minerals through its latest mining policy priorities and budget allocations.
Mining Budget Signals Long‑Term Policy Support
The Ministry of Minerals recently tabled a TZS 174.98 billion budget for FY2026/27, targeting stronger geological mapping, mineral value addition, and development of strategic mining projects.
Presenting the budget in Parliament, Minister for Minerals Hon. Anthony Mavunde said the sector continues attracting strong investor interest due to improvements in the business environment and ongoing project expansion.
Mining’s contribution to GDP has strengthened, reaching nearly 11.9%, while mineral exports now account for more than half of Tanzania’s goods exports.
Regional Competition and Tanzania’s Position
Tanzania’s mining story is unfolding within a broader African competition for mineral investment. While the DRC dominates cobalt and South Africa remains central to platinum, Tanzania’s advantage lies in diversification combining gold production with expanding critical‑mineral potential, Indian Ocean export access, and improving transport infrastructure.
This diversified resource base strengthens Tanzania’s long‑term appeal compared with single‑commodity jurisdictions.
Investor Lens: Beyond Extraction
Analysts increasingly argue that the next phase of sector growth will depend on deeper domestic linkages, moving beyond extraction toward mineral processing, smelting, refining, mining services, and industrial mineral value addition.
The government has repeatedly emphasised local content and downstream processing as part of its mining development strategy. If successfully implemented, this could widen the sector’s economic impact and create broader industrial opportunities beyond mine operations themselves.
Growth Prospects
Mining’s continued dominance confirms Tanzania’s enduring attractiveness as a resource investment destination. But the story is evolving: the sector is no longer driven solely by gold, but increasingly tied to global supply‑chain security, strategic minerals, and industrial transformation.
For investors, the signal remains compelling: Tanzania’s mining sector continues to anchor foreign capital inflows, while growing critical‑mineral demand is opening a new chapter in the country’s long‑term investment story.
