DAR ES SALAAM: TANZANIA’S mining sector has reached a stage where small-scale mining can no longer be treated as a side issue. The sector is growing, its contribution to the economy is clear, and the Government has already made important policy and institutional reforms. But the real test is no longer whether the country understands the importance of small-scale miners. The real test is whether the country can turn recommendations into measurable results.
The report on empowering the small-scale mining subsector is important because it brings together a central truth: Tanzania has mineral wealth, active miners and an expanding licensing framework, but the support system around small-scale mining remains weaker than the contribution miners are already making.
According to the report, mining contributed 10.1 per cent to the country’s GDP in 2024, surpassing the 2025 target of 10 per cent ahead of schedule. Small-scale miners contribute about 40 percent of the sector’s revenue. This means any serious discussion about mining-led growth, local participation, value addition and national benefit must begin with small-scale miners.
The scale of participation is also significant. By May 2025, a total of 52,774 Primary Mining Licences had been issued. On paper, this reflects formal participation by Tanzanians in the mining economy. But many of these licences remain underdeveloped because licence holders lack finance, geological data, technology, market access and institutional support. A licence alone does not create productivity. Without capital, machinery, verified resources, processing capacity and markets, a licence can become a document of hope rather than a tool of transformation.
That is why the report should be treated as more than a technical document. It is a warning that the next phase of mining reform must move from recognition to execution, from policy language to implementation, and from broad empowerment promises to targeted support reaching miners on the ground.
The report’s methodology gives it credibility. The team engaged stakeholders across all 30 mining administrative regions and used questionnaires, focus group discussions, key informant interviews and field assessments in regions including Simiyu, Mwanza, Arusha and Geita. This matters because smallscale mining is not an officebased economy. It is shaped by geology, labour, finance, safety risks, local politics, informal arrangements and market pressure.
The findings are clear. Small-scale miners face a finance problem, but that problem is connected to geological uncertainty, weak documentation, low technology, limited environmental compliance and market informality. Banks do not only fear miners; they fear uncertainty. They fear lending into a sector where reserves are not properly verified, production is hard to monitor, licenses are not easily collateralized and repayment depends on volatile mineral output.
This is why the report is right to treat the proposed Miners’ Bank as a long-term goal, not an immediate magic solution. A dedicated bank sounds attractive, but it would need several foundations first: verified feasibility studies, electronic monitoring systems, organized miners, legal recognition of artisanal miners, credit guarantees and financial products designed for mining realities. Without these foundations, a Miners’ Bank could inherit the same risks commercial banks are avoiding.
The report is also realistic about cost. It estimates that transitioning only 20 advanced small-scale miners would require at least USD 97 million. This shows that mining finance cannot be handled emotionally. Equipment, mine development, crushers, processing systems, safety systems and working capital require serious money. If poorly designed, a Miners’ Bank could become either too cautious to help miners or too exposed to survive.
The stronger approach is phased. First, establish the Tanzania Mineral Development Fund. Use it to de-risk the sector, support exploration, improve geological information, finance technology, promote value addition and prepare credible miners for formal financing. Then the country can gradually move toward a Tier I microfinance institution and eventually a full Miners’ Bank.
The Tanzania Mineral Development Fund is the report’s most important recommendation because it addresses the root problem. It is proposed not merely as a lending facility, but as a catalytic institution for exploration, geological data, technology, processing, rehabilitation and mine-closure obligations. Its purpose should be to make miners bankable, not simply to give them money.
The report proposes initial government capitalisation of 100 million US dollars, disbursement to at least 20 credible mining enterprises in the first year, channeling 20 per cent of mineral royalties and inspection fees into the fund, and limiting annual disbursement to 75 per cent of available funds.
Its simulation projects the fund could reach 258 million US dollars by year 10, with total disbursements of about 194 million US dollars. These figures give the proposal weight, but also highlight the risk. Such a fund can transform the sector only if it is professionally managed, protected from political lending, audited independently and guided by clear eligibility criteria.
The second major issue is geological data. The report states that 97 per cent of the country has been surveyed at broad scales, but highresolution geological mapping covers only 16 percent. Broad mapping is useful nationally, but miners and banks need licence-level information.
Geological data should therefore be treated as financial infrastructure. Without it, licences remain weak collateral and miners remain dependent on informal financiers.
The third issue is technology. The report shows that 72.2 per cent of miners use panning, while only 22.5 percent use more efficient technologies such as vat leaching. This is not just a productivity problem; it is a wealth problem. Technology transfer must move from speeches to practical infrastructure. Centres of Excellence should provide training, equipment demonstration, processing support, safety education and business skills.
The fourth issue is environmental and safety compliance. The report notes serious gaps in awareness of tailings management, rehabilitation, pollution control and legal obligations. Empowerment cannot mean increasing production while ignoring safety, mercury risks, land degradation or abandoned pits. Environmental compliance should be integrated into financing, training and cooperative support.
The fifth issue is legal recognition. Artisanal miners cannot be visible for taxation but invisible for structured support. Legal recognition should create a pathway to protection, organization, training, finance and growth.
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Finally, implementation must be accountable. Every recommendation should have a responsible institution, timeline, budget line and measurable indicator. Tanzania must track how many miners are registered, trained, financed, equipped and connected to fair markets.
The report is good. The recommendations are strong. The data is clear. But smallscale miners do not need another document praised at a launch and forgotten afterward. They need a system that works. Now Tanzania must prove that it can execute.