Samia outlines sweeping reforms to transform Tanzania’s mineral sector in her new five-year term

She noted that only 16 percent of Tanzania’s mineral-rich geological area has undergone detailed survey, saying the government’s task in the coming years is to “ensure these minerals bring development to our people and lift them economically.”

President Hassan highlighted that the sector’s contribution to the economy has expanded significantly, rising from 6.8 percent in 2020 to 10.1 percent in 2024. She added that this growth means minerals are contributing more revenue for citizens, government collections and investments in social services.

But she stressed that her administration’s next chapter will focus on deeper reforms and stronger governance: “Our aim in the next five years is to expand the sector’s impact and ensure that mineral wealth directly improves people’s lives.”

New strategy for critical minerals

One of the centrepieces of the reform agenda is the government’s plan to finalise the 'National Strategy for Critical Minerals' by 2030. The strategy will identify the types, quantities and geographical locations of minerals essential to global industries, including those powering renewable energy and high-tech manufacturing.

“These minerals are among the most sought after in the world, and we will increase our vigilance in overseeing investments in them,” she said.

In her bid to eliminate speculation and ensure active investment, President Hassan announced a nationwide review of all mining licences.

“We will review licences issued to identify those that have not been developed and take steps to reallocate them,” she told Parliament.

The move targets dormant exploration areas held by investors who have failed to develop them, depriving the country of potential revenue and jobs.

Small-scale miners, who form the backbone of Tanzania’s mining workforce, will receive expanded support. The President said the government will set aside special mining areas for them, fast-track their licensing, and provide access to capital, drilling equipment and accurate geological data.

“They have been a dependable pillar in the sector, and we will continue to support them,” she said. She added that the Bank of Tanzania will continue buying gold from licensed small-scale and medium-scale miners to reduce smuggling and stabilise markets.

The government will also strengthen formal markets for minerals and gemstones. A key milestone will be the completion of the 'Tanzanite Exchange Centre' in Mirerani, a step aimed at increasing transparency and boosting the value of Tanzanian gemstones.

“We want Tanzania to become the leading trading hub for minerals in East and Central Africa by 2030,” President Hassan declared.

Processing minerals at home

Perhaps the most transformative commitment is the plan to end the export of raw ore and concentrates. President Hassan said Tanzania is determined to establish a multi-purpose mineral refinery by 2030.

“We will stop exporting concentrates so that we can save the jobs that we have been losing,” she said.

She added that domestic processing will spur industrialisation, increase revenues and strengthen the mining value chain.

In one of the most forward-looking policy shifts, the President announced the creation of a "Minerals Sovereign Wealth Fund" to ensure mineral earnings safeguard the wellbeing of future generations.

“Minerals are not like crops that can be replanted,” she said. “We want our children to find not only empty pits but also the financial benefits of the minerals we are extracting today.”

With global demand for critical minerals rising rapidly, President Hassan’s reforms seek to position Tanzania as a competitive, transparent and value-driven mining powerhouse.

She told the Parliament that, "the country’s mineral wealth must fuel shared prosperity now and for decades to come.