As Tanzania continues to make strides in the mining sector, the upcoming Tanzania Mining & Investment Forum, held from the 25th to 26th of October 2023, promises to be a pivotal event in shaping the nation’s mining agenda.
With a rich abundance of mineral resources and an increasing focus on responsible and sustainable mining practices, this forum is poised to set the stage for Tanzania’s mining future. In this article, we will provide a preview of the Tanzania Mining Forum and its potential impact that is to be expected:
Tanzania’s mining sector has been on an upward trajectory, with diverse mineral resources, including gold, diamonds, graphite, lithium, and rare earth elements. The sector has played a significant role in the country’s economy, contributing to government revenue and employment opportunities.
According to the Ministry of minerals Tanzania, the mining sector’s contribution to the Gross Domestic Product (GDP) has increased yearly. In 2020/2021, the mineral sector’s contribution to GDP rose 7.2% from 6.7% in 2019/2020. The sector became the economy’s leading foreign exchange earner following the notable development.
Key Themes and Objectives of the Tanzanian Mining Forum 2023
The Tanzania Mining Forum 2023 is expected to address several key themes and objectives that are crucial for the development of the mining sector:
- Investment Promotion
Attracting both domestic and international investments is a crucial objective of the forum. Investment drives the growth of the mining sector, leading to job creation and economic development. Tanzania’s mineral potential is significant.
For instance, it is one of Africa’s largest gold producers, with gold accounting for a substantial portion of its mineral exports. In 2020, gold exports from Tanzania amounted to approximately $2.99 billion, according to Central Bank of Tanzania data.
- Sustainable Mining Practices
Promoting sustainable mining practices is essential for minimizing environmental impact, ensuring resource longevity, and gaining international credibility.
Tanzania’s commitment to sustainability is evident in its participation in the Extractive Industries Transparency Initiative (EITI). The EITI report for 2019/2020 highlights transparency in revenue collection and encourages responsible mining practices.
- Infrastructure Development
Adequate infrastructure, including transportation networks and energy supply, is critical for the success of mining projects. The forum aims to discuss strategies for infrastructure development. The World Bank reports that Tanzania has made notable progress in infrastructure development.
- Local Content and Job Creation
Maximizing local content in mining operations is a crucial theme. The forum explores ways to create job opportunities for Tanzanian citizens and stimulate economic growth in mining regions.
Employment in the mining sector has grown to over six million people thanks to the changes in the 2017 Mining Law. The changes in the mining laws, including adopting the Local Content regulations, have made the local purchases reach 92 per cent.
- Mineral Value Addition
Enhancing the value of mineral exports through value addition and processing within Tanzania is a critical objective. This adds value to raw minerals and increases government revenue. The government has been encouraging value addition in the mining sector.
Under the Permanent Sovereignty Act and the amended Mining Act, mining companies may not export any raw minerals for processing outside Tanzania and instead are required to develop beneficiation facilities in the country.
- Regulatory Framework
Clarifying the evolving regulatory framework is essential to provide certainty to investors and mining companies regarding compliance requirements and government policies.
The Tanzanian government has introduced regulatory changes, such as the Mining (Local Content) Regulations, 2017, which require mining companies to prioritize Tanzanian goods, services, and employment.
Under the amended Mining Act, mining companies must, when procuring goods and services, give preference to Tanzanian suppliers: any goods or services not available in Tanzania must be procured from a joint venture in which a Tanzanian company has at least a twenty-five per cent stake. These regulations are part of the broader regulatory framework to govern the mining sector.
Anticipated Outcomes
The Tanzania Mining Forum 2023 is expected to yield several positive outcomes for the country’s mining sector. The forum’s focus on investment promotion is expected to attract investments similar to the ones seen in recent years, contributing to sector growth. While investments are encouraged, the forum also emphasizes sustainable mining.
The emphasis on sustainability aligns with global trends and expectations, allowing Tanzania to demonstrate its commitment to responsible mining.
Strategies for value addition are expected to lead to higher revenues for the country, as processed and value-added products typically command higher prices in the global market.
As the mining sector expands, the forum’s objectives related to job creation will lead to a more substantial workforce, benefiting local communities and helping reduce unemployment.
The Tanzania Mining Forum 2023 holds immense promise for shaping the nation’s mining future. With its rich mineral resources, Tanzania has the potential to become a significant player in the global mining industry.
This forum is a platform to harness that potential, attracting investments, promoting sustainability, and ultimately contributing to Tanzania’s economic growth and development. As the event unfolds, it is expected to unlock new opportunities and set the course for a prosperous mining sector in Tanzania.
