Dodoma: The government has announced a major policy shift, reserving 20 categories of goods and services in the mining sector exclusively for Tanzanian-owned companies, aiming to deepen local participation and retain more economic benefits within the country.
Presenting the 2026/27 budget, Minerals Minister Anthony Mavunde said the move is designed to expand value addition, create jobs, and strengthen domestic supply chains linked to mineral resources. He stressed that only fully Tanzanian-owned firms will be allowed to operate in the reserved categories.
The restricted services include transport, logistics, catering, cleaning, construction, equipment supply, and legal services—areas seen as accessible to local entrepreneurs without requiring heavy capital investment. The policy is expected to boost business opportunities and increase the circulation of mining wealth within the local economy.
The announcement comes alongside growing momentum in strategic mineral projects, notably the Mbeya niobium project, which is projected to generate about Sh2 trillion in government revenue and create thousands of jobs. The project alone is expected to unlock $1.77 billion in local procurement opportunities.
Tanzania’s mining sector continues to expand rapidly, with mineral exports rising by 31.1 percent to $5.401 billion in 2025. The sector now accounts for over half of total exports and contributes nearly 12 percent to GDP, underscoring its central role in economic growth.
Despite the progress, Parliament has raised concerns over declining development funding in the sector, urging the government to strengthen domestic financing. Authorities maintain that reforms, increased local participation, and improved oversight will sustain long-term growth and maximise national benefits.