MOROGORO – Tanzania’s mining sector has attracted about TZS 9 trillion in investment over the past four years, with the government placing greater focus on strategic minerals, local participation and value addition.
Minerals Minister Hon. Anthony Mavunde announced the figure on August 15, 2026, in Morogoro during the signing of an agreement between the Tanzanian government and China’s Henan Yudi Mining Company for a major graphite project.
The agreement involves an investment of about US$100 million, equivalent to approximately TZS 265 billion.
Morogoro Graphite Project Capacity
The project is based on confirmed graphite deposits estimated at 104.28 million tonnes.
Once fully operational, it is expected to produce up to 50,000 tonnes of graphite annually. Henan Yudi Mining also plans to establish a processing capacity of up to one million tonnes per year.
The project is expected to create more than 600 direct jobs for Tanzanians, alongside opportunities for businesses involved in transportation, construction, supplies and other services.
Tanzanian Government to Take 17 Percent Stake in Project
Under the agreement, the Tanzanian government will hold a 17 percent stake in the graphite project.
The arrangement reflects the government’s effort to increase its direct participation in the economic value generated from Tanzania’s mineral resources rather than relying only on taxes, royalties and other payments.
Hon. Mavunde said the government has signed 14 framework agreements with investors as part of efforts to attract capital into strategic minerals and increase mineral processing within Tanzania.
Graphite Investment Boosts Battery Supply
Graphite is considered a strategic mineral because of its importance in battery manufacturing, particularly in the production of battery anodes.
Growing demand for electric vehicles and energy-storage technologies has increased global interest in graphite and other minerals used in battery production.
The Morogoro project could give Tanzania an opportunity to participate more actively in this supply chain and increase the amount of mineral value processed locally.
Morogoro Set to Benefit from New Graphite Investment
Morogoro District Commissioner Mussa Kilakala said the investment would create new economic opportunities for residents and support increased business activity in the region.
Apart from the more than 600 expected direct jobs, local companies could benefit from contracts and demand for goods and services required by the project.
Transportation, construction, logistics and other support services are among the areas expected to benefit from the development.
China-Tanzania Cooperation Expands
Chinese Ambassador to Tanzania Chen Mingjian welcomed the agreement, saying the project would strengthen economic cooperation between Tanzania and China.
She also said the investment would create employment and business opportunities in Morogoro while contributing to Tanzania’s wider economic development.
The project adds to the growing economic relationship between Tanzania and Chinese investors, particularly in sectors requiring large-scale capital investment.
Tanzania’s expanding mining investments present an opportunity for investors seeking exposure to strategic minerals and long-term industrial growth. The Morogoro graphite project demonstrates the potential for partnerships in mineral processing, infrastructure, logistics and downstream industries. Investors can benefit from Tanzania’s global supply of critical minerals and contribute to local industrial development and create economic value.
