Boosting Small-Scale Mining Through Public-Private Partnerships
Tanzania’s mining sector received a major boost as President Samia Suluhu Hassan inaugurated the new Gemstone and Gold Market in Tunduru, Ruvuma. This marks the country’s 43rd mineral market, signaling the government’s ongoing commitment to supporting small-scale miners. Built through a Public-Private Partnership (PPP) between the Tunduru District Council and local mineral traders, the market aims to enhance transparency in transactions, increase revenue collection, and provide better prices for small-scale miners.
Speaking at the inauguration, President Samia emphasized the importance of formalizing mineral trading to ensure fairer prices for miners. “The new market ensures that small-scale miners have access to better prices and a more conducive business environment,” she said.
Economic Impact of the New Mineral Market
The president also highlighted the remarkable progress of the mining sector in Tunduru District. Between July and August 2024, Tunduru contributed TZS 6.3 billion in government revenue. This achievement reflects the benefits of formalized mineral markets, which streamline operations and help curb illegal trading practices.
Additionally, President Samia announced that the State Mining Corporation (STAMICO) has procured 15 drilling rigs to support small-scale miners. These rigs will reduce production costs and increase operational efficiency. Five rigs have already been delivered, while the remaining ten are expected soon.
Minister of Minerals, Hon. Anthony Mavunde, reported that the mining sector has generated TZS 1.7 trillion across 43 mineral markets and 102 buying centers. In the first quarter of the 2024/2025 financial year, the sector contributed TZS 225 billion to the national treasury. Mavunde noted the strong performance of the sector, which continues to expand and drive economic growth.
A Growing Sector with Strong Government Support
Tanzania’s mining sector is showing rapid growth, with an annual rate of 10.9%. Currently, it contributes 9.1% to Tanzania’s GDP, a significant portion of which comes from small-scale miners. President Samia praised the contributions of these miners, emphasizing their importance in Tanzania’s mining value chain.
The president also credited investor-friendly laws and improved regulations for the sector’s success. The Ministry of Minerals’ 2023/2024 financial report revealed that the mining sector contributed TZS 6.4 trillion to the national economy. Of this, 40% came from small-scale miners.
President Samia Takes a Firm Stance on Misinformation
While celebrating the achievements in the mining sector, President Samia also took a firm stance against misinformation. During her speech, she condemned the spread of false images on social media and criticized local leaders for their inaction. She urged them to respond swiftly to misinformation instead of waiting for higher authorities to address the issue.
“When false images are circulated online and local leaders fail to deny or clarify the situation, it undermines public confidence in our institutions,” President Samia said. “We cannot afford to be silent in the face of misinformation.”
She called for stronger leadership at the local level to ensure that the public receives accurate information about ongoing development projects and government efforts.
Development Initiatives Beyond Mining
In addition to her focus on mining, President Samia outlined broader development efforts in the Ruvuma region. One key project is the construction of an electricity substation, which is over 50% complete. This substation will improve power reliability for Tunduru and Namtumbo districts.
In the agricultural sector, President Samia praised local farmers for their dedication. She noted that government interventions have helped secure better prices for their crops, improving livelihoods in the region.
President Samia also addressed the issue of human-wildlife conflict, particularly regarding elephants destroying crops. To resolve this, the government is increasing the number of rangers and introducing drones and patrol vehicles for wildlife monitoring. These measures aim to protect both crops and local communities, ensuring a sustainable coexistence between people and wildlife.
Conclusion
President Samia’s visit to Tunduru underscores the government’s dedication to formalizing the mining sector and improving the lives of small-scale miners. With new drilling rigs, formal mineral markets, and initiatives to curb misinformation, Tanzania is poised for continued growth in the mining sector. The President’s broader focus on infrastructure, agriculture, and wildlife protection reflects a comprehensive approach to regional development, positioning Ruvuma for long-term economic prosperity.
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