Tanzania’s mining sector has cemented its role as a cornerstone of the national economy, achieving a record-breaking contribution of 10.1% to the GDP in 2024 . This performance surpasses the government’s initial 2025 target well ahead of schedule, underscoring the sector’s robust growth .
The GDP from mining reached an all-time high of 2,317,959 TZS million (approximately $0.923 billion USD) in the fourth quarter of 2024 . This marks a monumental increase of over 1,000% in nominal terms since the fourth quarter of 2008, highlighting a period of sustained expansion and development for the industry .
This remarkable growth is propelled by Tanzania’s position as Africa’s fourth-largest gold producer, with exports valued at USD 2.86 billion in the 2022/2023 period . Beyond gold, the sector’s strength lies in its diversity, with over 40 minerals being mined. Recent surges in coal and diamond exports have further bolstered revenues and demonstrated the country’s extensive mineral wealth.
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The growth in Tanzania’s mining GDP is driven by:
- Gold Production: Tanzania is Africa’s fourth-largest gold producer (after South Africa, Ghana, and Mali), with annual production of approximately 40–47 metric tons in recent years. Gold exports alone were valued at USD 2.86 billion in 2022/2023, contributing significantly to foreign exchange earnings.
- Diverse Mineral Portfolio: Tanzania mines over 40 types of minerals, including diamonds, tanzanite (unique to Tanzania), coal, copper, nickel, lithium, graphite, and rare earth elements. Notable increases in coal exports (from USD 23.2 million to USD 228.6 million year-on-year) and diamond exports (from USD 9.6 million to USD 66.9 million) have bolstered the sector.
- Policy Reforms: Government initiatives under President Samia Suluhu Hassan, including enhanced regulatory frameworks, gemstone auctions, and local mineral markets, have increased the sector’s GDP contribution from 7.2% in 2021 to 10.1% in 2024, surpassing the 2026 target of 10%.
- Investment and Infrastructure: Investments in mining, such as deals with Australian companies worth USD 3.15 billion for rare earths and graphite, and Tesla’s contract for anode active material, have boosted output.
