GOVERNMENT COMMITS TO EMPOWERING SMALL-SCALE MINERS IN TANZANIA

▪️Report on strategies to develop small-scale miners presented

▪️Prof. Mkumbo highlwights the importance of the mining sector in achieving Vision 2050

▪️Goal is to create jobs, reduce poverty, and stimulate economic growth

▪️Credit Guarantee Fund to address capital challenges facing miners

▪️Government to establish a Mining Fund to support mineral exploration

📍 Dar es Salaam

The Government has reaffirmed its commitment to urgently implementing recommendations submitted by a team of experts tasked with advising the Ministry of Minerals on strategies to economically empower small-scale miners. It noted that addressing challenges related to capital, technology, and access to reliable geological information is crucial for increasing employment opportunities, reducing poverty, and accelerating economic growth in line with Tanzania’s Vision 2050.

The remarks were made on June 13, 2026, in Dar es Salaam by the Minister of State in the President’s Office for Planning and Investment, Prof. Kitila Mkumbo, during a ceremony to receive the report on the development of small-scale miners. He emphasized that President Samia Suluhu Hassan has directed that development plans should focus on three key national priorities: increasing access to capital, creating jobs, and reducing poverty.

Prof. Mkumbo stated that empowering small-scale miners with access to finance and modern technology would unlock opportunities for increased production, employment, and household incomes, thereby contributing significantly to poverty reduction.

"A minister’s primary responsibility is to provide policy direction for the institution or ministry he or she leads. During my time in government, Hon. Mavunde has clearly demonstrated that he understands his priorities and how to achieve them," Prof. Mkumbo said.

He further noted that poverty levels remain high in some parts of the country, citing Geita Region—Tanzania’s leading gold-producing region—where poverty stands at approximately 38 percent. He stressed that empowering small-scale miners can help address such challenges while enhancing the mining sector’s contribution to economic transformation and job creation.

Speaking at the event, Minister for Minerals Anthony Mavunde said the government established the committee in recognition of the significant contribution made by small-scale miners to the mining sector despite facing challenges related to financing, technology, and access to financial services. He revealed that small-scale miners currently contribute about 40 percent of government revenue collected from the mining sector.

Mavunde added that the remarkable progress achieved in the mining sector in recent years demonstrates the importance of further empowering small-scale miners to increase their contribution to the national economy.

According to the minister, during the 2015/16 financial year, the mining sector contributed only TZS 161 billion to the government treasury. However, following various reforms, including amendments to mining laws, the establishment of mineral markets, and stronger measures against illegal mineral trade, revenues increased significantly to TZS 1.107 trillion in the 2024/25 financial year. As of June 13, 2026, government collections had already reached TZS 1.3 trillion.

He emphasized that the responsibility of any government is to enable its citizens to engage in productive economic activities more efficiently. This is why the government has developed a special strategy to help small-scale miners grow into medium-scale and eventually large-scale mining operators.

Addressing the issue of financing, Mavunde said the government has begun implementing the Credit Guarantee Corporation initiative, which will enable miners to access loans from various financial institutions.

Chairperson of the committee, Dr. Victor Tesha, stated that the solution lies in establishing an inclusive framework that supports small-scale miners through access to finance, modern technology, geological information, and improved institutional coordination. He proposed the establishment of a Tanzania Mining Fund that would finance qualified projects, support the purchase of mining equipment, improve production activities, and fund geological research and data collection for miners.

Dr. Tesha added that once the fund becomes well-established and sustainable, the next step would be to create a dedicated Miners’ Bank that would provide specialized financial services tailored to the needs of the mining sector.

"The committee also recommends that loans should be directed primarily toward the acquisition of machinery and modern technology rather than cash disbursements alone, in order to enhance productivity, output, and safety in mining operations," he said.

Meanwhile, the President of the Federation of Small-Scale Miners Associations, John Bina, commended the government for the report, noting that it reflects the government’s willingness to listen to and address the concerns of small-scale miners. He also praised the decision to allocate 10 percent of mining revenues toward mineral exploration and research activities.