DODOMA– Tanzania’s mining sector is growing as a key contributor to the country’s economic development. Speaking during a parliamentary session while presenting the 2026/27 budget on 27 April 2026, Minister for Minerals Anthony Mavunde said Tanzania’s mining sector is continuing to expand, supported by increased foreign investment and rising global gold prices.
The Minister has proposed a budget of TZS 174.98 billion (about USD 70 million) for the 2026/27 financial year, aiming to collect TZS 1.41 trillion (around USD 565 million) in revenue from the sector, which currently contributes 11.9% to the country’s GDP.
The sector remains one of the leading destinations for Foreign Direct Investment (FDI), accounting for a large share of total investment in key productive sectors. Data from the Tanzania Investment Report 2025 shows investment reached USD 9.79 billion in 2024, up from USD 9.15 billion in 2023 and USD 8.64 billion in 2022. The trend reflects growing confidence in Tanzania’s mineral potential and investment environment.
Key Growth Factors
Higher global gold prices have played a major role. Between July 2025 and March 2026, the average price rose to USD 4,190.47 per ounce from USD 2,655.80 a year earlier. This has increased revenues, improved profitability, and supported further investment.
Minister Mavunde said government reforms continue to improve the investment climate. These include better licensing systems, stable policies, and support for both large and small-scale miners.
Also, infrastructure improvements, including roads, electricity, and designated mining zones, are supporting expansion. The government says mining revenues will continue to support key sectors such as education, healthcare, water, and infrastructure.
Support for Local Participation in Mining
The government continues to strengthen the role of citizens in the mining sector by creating more inclusive opportunities and improving conditions for participation across different levels of the value chain. These efforts are aimed at ensuring that Tanzanians benefit directly from the country’s mineral wealth. According to Minister Mavunde, the government is providing targeted training programmes, and improved access to financing and modern mining equipment is helping local miners operate more efficiently and expand their activities.
Investment Outlook
Continued investment, rising gold prices, and ongoing reforms position Tanzania as a competitive and reliable mining destination with long-term potential. The government’s focus on expanding mineral exploration through geological surveys is expected to unlock new mining areas. Also, a clear commitment to environmental management ensures long-term value and stability for investors. The overall trajectory of the sector suggests sustained growth, offering a favourable environment for investments.
