In an enlightening interview with Clouds 360 TV on August 26, 2024, Anthony Mavunde, Tanzania’s Minister of Minerals, shared pivotal insights and updates on the country’s mining sector. The discussion, centered around Tanzania’s Vision 2030, highlighted the substantial progress and future potential of the mining industry, showcasing its crucial role in the nation’s economic landscape.
Vision 2030: Minerals as Life and Wealth
Minister Mavunde emphasized the integral role of the mining sector in Tanzania’s Vision 2030, describing minerals as both “life and wealth” for the nation. A key highlight was the impact of the high-resolution airborne geophysical survey, which, despite covering only 16% of Tanzania, has significantly contributed to the country’s economy. In the fiscal year 2022/2023, the mining sector led all industries in foreign exchange earnings, accounting for 56% of the total foreign income and generating a remarkable $3.1 billion in exports.
Domestically, the sector contributed TZS 2.1 trillion in taxes, representing 15% of the total national revenue. Transaction volumes in the sector reached TZS 1.7 trillion, with government collections amounting to TZS 678 billion. Additionally, local procurement and services, under the local content initiative, accounted for TZS 3.1 trillion, further demonstrating the sector’s broad economic impact.
Expansion Potential: Integrating Agriculture, Water, and Health
Minister Mavunde outlined the expansion potential of the mining sector, particularly its integration with other key sectors such as agriculture, water, and health. Through more comprehensive surveys, the Ministry aims to identify vital water sources that could support 22 new irrigation schemes and the construction of 100 dams across the country. This integration is expected to significantly enhance food security and water availability.
Addressing soil acidity, which affects over 3.7 million hectares of land in Tanzania, was another focal point. The Minister highlighted the potential of local minerals like gypsum and agricultural lime to treat saline soils, thereby improving agricultural productivity.
Moreover, the ongoing research in the Rukwa and Songwe regions into Tanzania’s helium gas reserves could position the country among the top global suppliers of this crucial resource.
Fertilizer Production: Reducing Import Dependency
In a strategic move to reduce import dependency, Minister Mavunde announced plans to leverage Tanzania’s abundant coal reserves to attract major investors for local urea fertilizer production. This initiative aims to support Tanzanian farmers and ensure a stable supply of fertilizers, which are vital for the country’s agricultural sector.
Strategic Initiatives and Budget Expansion
The Ministry of Minerals has secured a significant budget increase following a strategic presentation to President Samia Suluhu Hassan. The Ministry’s budget will rise from TZS 89 billion in 2023/24 to TZS 231 billion for the 2024/25 fiscal year. Of this, over TZS 115 billion will be allocated to the Geological Survey of Tanzania (GST) for the development of regional laboratories and the establishment of modern facilities in Dodoma. This increased funding will enhance the Ministry’s capacity to conduct geological research and support the mining sector’s growth.
Strategic Minerals: Positioning Tanzania in the Global Market
As the global shift towards electric vehicles accelerates, the demand for graphite—a key component in battery production—is soaring. Minister Mavunde highlighted that Tanzania, currently the third-largest graphite producer in Africa, is well-positioned for growth. The country has already issued nine large-scale mining licenses for graphite extraction, signaling its readiness to meet the global demand.
Tanzanite Trade at Mirerani: Strengthening Tanzania’s Global Presence
The Minister also provided an update on the Tanzanite Exchange Center in Mirerani, which is nearing completion, with 84% of the construction finished. This protected trade zone will centralize all Tanzanite trade within the area, bolstering Tanzania’s position in the global Tanzanite market. Upcoming legislative changes are expected to further stimulate international exhibitions and auctions, enhancing the country’s global presence.
Sector Growth: A Revenue Milestone
The interview concluded with a reflection on the remarkable growth of the mining sector under Minister Mavunde’s leadership. Revenue collections have surged from TZS 168 billion in FY 2014/2015 to TZS 753 billion as of June 2024. With a target of TZS 1 trillion for FY 2024/25, the mining sector continues to be a cornerstone of Tanzania’s economic growth and a key driver of its Vision 2030 aspirations.
Minister Mavunde’s interview on Clouds 360 TV provided a comprehensive overview of the progress and potential of Tanzania’s mining sector, underscoring its critical role in the nation’s economic development and future prosperity.
