Tanzania Plans Four New Mines by 2030 to Accelerate Economic Growth and Development

By Adonis Byemelwa

The Ministry of Minerals in Tanzania has announced plans to establish four new mines by 2030, aiming to significantly enhance the sector's contribution to the national economy.

This ambitious plan was unveiled by the Permanent Secretary of the Ministry, Kheri Mahimbali, during the London Investment Conference held in the UK last week.

"Our goal is to establish at least four new mines by 2030, attracting major players such as Rio Tinto, BHP, Vale, Glencore, Anglo-American, and Zijin, and positioning Tanzania as a key hub for minerals," Mahimbali stated.

In October 2023, President Samia Suluhu Hassan, during the launch of the National Mining Corporation (Stamico) facilities, highlighted the sector's progress. She noted that the mining sector contributed 7.2% to the national GDP in the 2020/21 financial year and is on a positive trajectory towards strengthening the economy.

When asked by participants at the London Conference about his primary concerns for the ministry, Mahimbali pointed to the efforts to secure ISO certification for Stamico, the Mining Commission, and the Tanzania Geological Survey (GST). "Our vision is to elevate Stamico through strategic partnerships with the private sector that extend beyond Tanzania.

This journey involves forming collaborations with industry leaders such as S&P Global and the Fraser Institute, and actively participating in key events like the Chatham House London Conference, Africa Down Under, investing in Africa Mining Indaba, and the FT Mining Summit," Mahimbali explained.

During the conference, Mahimbali and his delegation also met with Lorna Blaisse, CEO of Helium One, a company involved in energy resource extraction. "Together with my team, we received an impressive presentation on the work being done by Helium One in advancing the helium gas sector. We commended them and assured them of our continued support in their efforts," Mahimbali said.

This strategic push to establish new mines and attract leading global companies underscores Tanzania's commitment to leveraging its mineral resources to drive economic growth and development. Foreign Direct Investments (FDIs) have been pivotal in Tanzania's economic development over the past decades. The Tanzanian government has implemented various policies and reforms to create a conducive environment for foreign investors, which has led to significant inflows of capital into the country.

One of the key sectors attracting FDIs is the mining industry, which has seen substantial investments from global mining giants. The country's rich deposits of gold, diamonds, tanzanite, and now helium have made it an attractive destination for mining companies. The proposed establishment of four new mines by 2030 is expected to further boost FDI inflows, providing a robust foundation for the sector's growth.

In addition to mining, Tanzania has also attracted considerable foreign investments in agriculture, manufacturing, tourism, and infrastructure.

The agricultural sector, in particular, has benefited from investments aimed at enhancing productivity and modernizing farming techniques. These investments are crucial for a country where agriculture remains a significant part of the economy, employing a large portion of the population.

Infrastructure development has also been a major focus, with foreign investments flowing into the construction of roads, railways, ports, and energy projects. These developments are essential for improving the country’s logistics and transportation network, thereby facilitating trade and commerce.

Tourism, another vital sector for Tanzania, continues to attract investments in hotel construction, wildlife conservation, and tourism services. The country's natural attractions, including the Serengeti National Park, Mount Kilimanjaro, and Zanzibar, remain major draws for tourists worldwide, driving the need for enhanced tourism infrastructure.

Moreover, the Tanzanian government has been working on improving the business environment to attract more FDIs.

 Initiatives such as the Blueprint for Regulatory Reforms to Improve the Business Environment and the establishment of the Tanzania Investment Centre (TIC) are aimed at streamlining investment procedures and reducing bureaucratic hurdles.

The commitment to fostering a favorable investment climate, combined with the country's abundant natural resources and strategic location, positions Tanzania as a promising destination for foreign investors.

 As the government continues to implement strategic projects and reforms, the role of FDIs in driving Tanzania's economic growth is expected to become even more significant in the coming years.