DAR ES SALAAM: THE Tanzania Development Vision 2050 (Dira 2050) underscores the critical role of the private sector and particularly Foreign Direct Investment (FDI), in driving the country’s socio-economic transformation.
The vision aspires to build “a competitive, assertive, responsible and inclusive private sector that leads socio-economic development,” supported by citizen empowerment programmes and attractive investment policies.
In line with this aspiration, the government has opened the mining sector to foreign investors under clear conditions, including strict adherence to Local Content laws designed to ensure Tanzanians benefit from the country’s natural resources.
The mining sector remains one of Tanzania’s key economic pillars, contributing about 10 per cent to the Gross Domestic Product (GDP).
Revenue generated from mining supports public services such as education, healthcare and infrastructure development, while also creating thousands of direct and indirect jobs.
However, the Tanzania Mining Service Providers Association (TAMISA) has raised concerns over alleged violations of local content guidelines by some foreign mining companies.
Speaking to journalists recently, TAMISA Chairman Mr Peter Kumalilwa said the association has received reports indicating that certain companies are bypassing local content requirements by awarding tenders to non-Tanzanian-owned firms, while imposing restrictive procurement conditions on local companies.
“We continue to receive reports that some companies are violating local content guidelines. They award tenders to firms not owned by Tanzanians, but impose harsh conditions when dealing with Tanzanian companies. Such actions are against the law and unacceptable,” Mr Kumalilwa said.
He stressed that while the government has created a conducive investment environment, it must also ensure Tanzanians remain the primary beneficiaries of national resources.
Mr Kumalilwa warned that continued non-compliance discourages local suppliers and service providers, undermining the full implementation of the local content policy.
“TAMISA is committed to enforcing laws and regulations without fear or favour. We will take firm action, including reporting offenders to relevant authorities,” he said.
He said that services that can be provided by Tanzanians within mining operations must be reserved for Tanzanians, noting that this would safeguard employment opportunities, particularly for youths in communities surrounding mining areas.
According to Mr Kumalilwa, full compliance with investment and local content laws will accelerate GDP growth, increase foreign earnings and promote social development through improved infrastructure such as roads, electricity, water and communication services.
He commended the government under President Dr Samia Suluhu Hassan for reforms aimed at strengthening the mining sector.
He also praised the Ministry of Minerals, led by Minister Anthony Mavunde, and the Mining Commission for enhancing oversight and prioritising local participation.
Mr Kumalilwa highlighted a landmark government decision announcing a list of 20 services and products that must be supplied exclusively by 100 per cent Tanzanian-owned companies.
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Implementation of the directive began on November 15th, last year, following amendments to the 2018 Mining Local Content Regulations through Regulation 13A.
Statistics indicate notable progress in local participation. Procurement of goods and services from Tanzanian companies increased from 1.85tri/- (62 per cent of total procurement) in 2018 to 4.41tri/- , equivalent to 88 per cent of the 5.0tri/- total procurement value in 2024.
“These achievements reflect a positive trend that must be sustained,” Mr Kumalilwa said.
TAMISA Chief Executive Officer Mr Japhet Mussa said the government recognises the commitment of Tanzanians eager to invest in mining and is prepared to support increased local participation across the value chain.
He revealed that TAMISA has been allocated 125 acres of land in the Buzwagi area of Shinyanga Region to establish factories for producing goods to serve the mining sector.
“The initiative aims to bring together Tanzanians who aspire to own factories both large-scale and small-scale investors, to create strong business linkages and compete effectively in the market,” Mr Mussa said.
He urged Tanzanians with capital to seize the opportunity, noting that the mining sector offers a guaranteed market supported by existing investment protection laws.
“This is the right time for Tanzanians to rise and take advantage of this structured government programme to ensure every citizen benefits from our natural resources,” he said.