Boosting Mining’s GDP Contribution in Tanzania: A 2025 Vision

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The Tanzanian government has set an ambitious target to boost the mining sector contribution to the country’s Gross Domestic Product (GDP) to 10 percent by 2025. This goal is part of Tanzania’s Development Vision 2025, a long-term plan aimed at transforming the country into a semi-industrialized nation by 2025.

Tanzania is near the target of 10 percent as envisioned in Tanzania’s Development Vision 2025 plan. Minerals minister Hon. Doto Biteko says the sector’s contribution to the GDP stood at 9.7 percent as of the third quarter of 2022. The mining sector, which includes gold, diamonds, and tanzanite, among other minerals, is a significant contributor to the country’s economy.

The sector has seen steady growth over the years, thanks to favorable government policies and the presence of large-scale mining companies. When the implementation of the Development Vision kicked off in 2020, the mining sector’s contribution to GDP was estimated at 3.5 percent.

The government has implemented several strategies to achieve the 10 percent GDP contribution target. These include promoting small-scale mining activities, attracting more investments into the sector, improving the regulatory framework to ensure transparency, and organizing forums so as to bring together both local and foreign mining stakeholders to discuss cooperation strategies to unlock and advance opportunities for development in the sector.

The government is also focusing on value addition to minerals, encouraging companies to establish processing plants in the country. Tanzania is home to significant deposits of lithium, cobalt, nickel, and rare earth elements, the minerals which are in high demand as the world transitions to a low-carbon economy.

This makes the positioning of the government in this sector just right, and with direct benefits that the government earns from this collaboration only sets the country ahead in the industry. This move is expected to create jobs, increase revenue, and reduce the export of raw minerals.

Despite the progress, several challenges need to be addressed to achieve the 2025 target. These include infrastructural constraints, lack of access to finance for small-scale miners, and environmental concerns related to mining activities. The recent discovery of new mineral deposits and the increasing global demand for minerals present significant growth opportunities for the sector.

The Tanzanian government’s goal to boost the mining sector’s contribution to GDP to 10 percent by 2025 is a testament to the sector’s potential. While challenges exist, the target is within reach with the right policies and strategies. The achievement of this goal would mark a significant milestone in Tanzania’s journey toward becoming a semi-industrialized nation.

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