Why Global Investors Are Flocking to Tanzania's Mining Sector

Have you ever stopped to ask why a country that ranked 67th out of 84 jurisdictions for mining investment just four years ago has now shot up to 34th place globally and is attracting billions in foreign capital? 

It is a fair question. In 2021, Tanzania was near the bottom of the pile. Investors were cautious. 

Policy uncertainty lingered. The sector was promising, but execution was inconsistent.

Fast forward to 2025, and the picture could not be more different. Total investment commitments across the Tanzanian economy reached $10.95 billion in 2025, with 915 projects registered - up from 901 in 2024 and just 252 in 2021. Foreign direct investment stock in the minerals sector alone reached **$9.79 billion in 2024, climbing steadily from $9.15 billion in 2023 and $8.64 billion in 2022. Mining has become the country's leading foreign exchange earner, contributing over 10 percent of GDP up from just 4 percent in 2007.

So, what changed? And more importantly, what does this mean for you as an investor, equipment supplier, or strategic partner?

Let us break it down.

The Numbers That Demand Attention

The transformation is not subtle. Tanzania set a national target under Vision 2025 for mining to contribute at least 10 percent of GDP by 2025. The sector achieved that target a year early, in 2024. By late 2025, the sector's contribution had reached an average of 11.9 percent between January and September.

Mineral exports tell a similar story. In 2025, mineral exports reached $5.401 billion, up from $4.119 billion in 2024 growth of 31.1 percent. Gold exports alone rose from $3.419 billion to $4.754 billion, a staggering 39 percent increase. For the first time, gold surpassed tourism as Tanzania's leading source of foreign currency. Minerals now account for 52.57 percent of 

Tanzania's traditional and non‑traditional exports, up from 45.17 percent in 2024. These are not marginal improvements. They are structural shifts.

What Is Driving This Momentum?

Three factors are converging to make Tanzania one of Africa's most compelling mining destinations.

First, mineral wealth that ranks among the world's best.

Here is the thing: the Fraser Institute's 2025 Annual Survey of Mining Companies placed Tanzania 15th globally for mineral potential, with a score of 75 out of 100. This is not a subjective assessment - it is based on geological data, resource estimates, and the views of over 2,300 senior mining executives worldwide.

Tanzania has identified 25 critical and 18 strategic minerals that could drive economic growth. Graphite is a standout: Tanzania holds approximately 6 percent of the world's graphite reserves, essential for lithium‑ion battery anodes. The Mahenge and Epanko graphite mines are each expected to produce over 60,000 tonnes annually. Rare earth elements like Neodymium and Praseodymium - critical for electric vehicle motors and wind turbines are also present in substantial deposits. And the Kabanga Nickel Project is believed to be one of the world's largest and highest‑grade development‑ready nickel sulphide deposits.

Second, a government that is serious about value addition.

The 2025 amendments to the Mining (Local Content) Regulations have tightened requirements for foreign companies, mandating joint ventures with 100 percent Tanzanian‑owned companies and expanding the scope of local content plans. While this adds complexity, it also signals a government committed to maximising local economic benefits - creating a clear framework for serious, long‑term investors who are willing to partner with local operators.

Third, infrastructure and execution are finally catching up.

Tanzania is responding. The China Civil Engineering Construction Corporation announced a $1.4 billion investment to revitalise the Tanzania–Zambia Railway network. A separate $2.15 billion rail agreement with Burundi and China Railway Engineering Group will develop a new line connecting western mining regions to the port of Dar es Salaam. Zijin Mining has secured a concession to invest in Kigoma Port and the Malindi Terminal. A nickel and copper smelting plant in Bahi District is 85 percent complete.

More mining companies are connecting to the national grid, lowering reliance on diesel generation and stabilising costs. These are not cosmetic changes. They directly affect timelines, costs, and the ability of projects to move into production.

What This Means for You

For international equipment suppliers, off‑takers, co‑investors, and service providers, Tanzania's mining sector presents an opportunity that is both clear and complex.

The opportunity is this: a sector that has grown from 4 percent to nearly 12 percent of GDP in under two decades, with a government committed to value addition, billions in infrastructure investment, and a mineral endowment that ranks among the best in the world.

The complexity is this: navigating local content requirements, licensing processes, and the shift toward domestic processing demands local presence and regulatory fluency. The 2025 amendments to the Mining (Local Content) Regulations have introduced stricter requirements for foreign companies, including mandatory joint ventures with 100 percent Tanzanian‑owned companies and expanded local content reporting. These are not barriers to be avoided - they are realities to be managed.

This is where Simba Ustawi fits.

We hold active gold processing and copper mining licenses in Tanzania. We operate on the ground. We have proven partnerships and a track record of turning mineral potential into production. We understand the regulatory environment, the infrastructure challenges, and the opportunities.

Whether you are an equipment supplier looking for a local partner, an off‑taker seeking high‑quality copper and gold, or a co‑investor ready to deploy capital, we are the partner who can make it happen.

Ready to Work With Us?

We connect investors, equipment suppliers, and off‑takers to high‑quality copper and gold - with active licenses, proven partnerships, and a track record of delivery.

Let us start a conversation about how we can work together.

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