Tanzania’s Mineral Revenues Hit Record High; Mavunde Cracks Down on Foreign Involvement and Corruption
By Alfred Zacharia
In a significant development, the Minister of Minerals, Hon. Anthony Mavunde, announced that Tanzania’s mineral sector has achieved record-breaking revenue collections, reaching Sh 753 billion in the fiscal year 2023/2024. This achievement marks a substantial increase from the previous year’s collections and underscores the growing contribution of the mining sector to the national economy.
Minister Mavunde, speaking in Dodoma on July 28, 2024, highlighted that the Ministry of Minerals, through the Mining Commission, had initially set a target to collect Sh 882.121 billion from various sources, including royalties, annual license fees, inspection fees, geological fees, laboratory service charges, and various penalties.
The actual collection of Sh 753.815 billion represents 85.45% of the target, indicating a robust performance in the sector.
“This collection is an increase of Sh 76.080 billion compared to the Sh 677.734 billion collected in the 2022/2023 fiscal year,” Mavunde noted, emphasizing the sector’s positive trajectory. He pointed out that from the fiscal year 2019/2020 to 2023/2024, revenue collections have consistently increased, instilling confidence in achieving the ambitious target of Sh 999.998 billion for the 2024/2025 fiscal year.
The Minister also addressed a critical issue concerning the management of small-scale mining licenses, which are exclusively granted to Tanzanians under Section 8(2) of the Mining Act, Chapter 123.
Mavunde announced a crackdown on informal agreements that allow foreigners to operate under these licenses without proper authorization. He stressed that while the law permits foreign technical assistance under certain conditions, such agreements must be approved by the Mining Commission to ensure compliance and protect local interests.
Minister Mavunde expressed concern over the negative impacts of unauthorized foreign involvement, which includes job losses for local miners and the depletion of invested capital, potentially fostering resentment towards the government. “Severe penalties will be imposed on those who fail to comply with these regulations,” Mavunde warned, announcing special operations by Regional Mining Officers (RMOs) to enforce the rules. He made it clear that RMOs would be held accountable for any violations occurring in their regions.
Furthermore, Minister Mavunde condemned fraudulent activities and mineral smuggling, which undermine government revenue and the integrity of the mining sector. He directed the Permanent Secretary of the Ministry of Minerals, Engineer Yahya Samamba, to take immediate disciplinary action against dishonest officials within the ministry.
“We have identified unethical officials at the regional level who facilitate revenue losses. Their names will be provided, and swift action is required. We will not tolerate such behavior,” he asserted.
In an additional move to streamline and revitalize the sector, Mavunde revealed that 2,648 licenses and applications have been canceled. The government plans to reallocate these opportunities, with new openings to be announced for both domestic and foreign investors. This reallocation aims to attract serious investors who can contribute to the development and sustainability of the mining industry in Tanzania.
Minister Mavunde’s announcements underscore a determined effort to ensure that the benefits of Tanzania’s mineral wealth are maximized for the nation, while also maintaining strict adherence to legal and ethical standards in the sector. As the government continues to implement these measures, the focus remains on enhancing transparency, accountability, and the overall contribution of the mining sector to Tanzania’s economic growth.
