Mining in Tanzania: Status and Challenges - Resource Governance

A country’s mineral wealth should be a blessing for its people. However, experience in various countries has shown that the endowment with mineral wealth can prove to be very problematic instead – a phenomenon known as the “resource curse”.

In recent years, discovery and exploitation of minerals in Eastern Africa has rapidly expanded. This raises questions and concerns about their impact on the future of the region.

The study “The Extractive Resource Industry in Tanzania: Status and Challenges of the Mining Sector” has been conducted by the East Africa Regional Office of the Society for International Development, with support from the Heinrich Böll Foundation in Nairobi.

Tanzania is a relatively late arrival to large-scale mining. The study provides an overview about the history and current status of discovery and exploitation of mineral resources in Tanzania, about the socio-economic implications, and about the legal and political framework in which mining in Tanzania operates. The study argues that, if timely investments are made in promoting and implementing good practices in the mining sector, the problems that have plagued other resource-rich countries can be avoided in East Africa.

The study is a product of a process that has engaged various industry stakeholders. It maps out the performance of the mining sector as one component of Tanzania’s extractive resource industry (ERI) and analyses the interactions of the different stakeholders over time. It argues that although there are a number of challenges faced by the ERI sector, Tanzania could become one of the best performers in her class. However, this will require hard work and investments by all stakeholders.

By providing information on the challenges and implications of the current state of the ERI in Tanzania, this study wishes to contribute to the ongoing discourse and efforts to improve the performance of the ERI in Tanzania in a way that incorporates public accountability and transparency as well as increased participation and benefit to the Tanzanian population.