Dar es Salaam. Credit to Tanzania’s private sector continued to expand last year, with the mining and quarrying sector emerging as the fastest-growing recipient of bank financing, according to the Bank of Tanzania (BoT).
The central bank’s Monthly Economic Review for January shows that annual growth in credit to the mining sector in the year ending December 2025 outpaced all other economic activities after growing by 91.1 percent, compared to negative growth recorded by March last year.
It was followed by trade and transport and communication which grew by 49.7 percent and 29.4 percent respectively, according to the report. Agriculture grew by 28.9 percent while building and construction grew by 25.6 percent.
Analysts say the growth of the credit to the mining sector reflect an increase in demand pushed by accelerating activities in the extractive industry. Independent economic analyst Oscar Mkude said the mining sector has recently become more attractive to lenders due to improvements in its structure and policy direction, particularly among small-scale miners who are increasingly formalising their operations.
According to him, policy developments such as plans to build a smelter signal stronger coordination and long-term commitment to developing the industry’s value chain.
“This kind of policy direction creates confidence in the sector,” he said, adding that when lenders see improved organisation and clearer investment signals, they are more willing to extend credit.
He added that favourable global conditions are also supporting the sector, noting that mineral prices have remained strong and relatively stable in recent months.
“When you combine domestic policy stability with favourable global prices, the mining sector naturally becomes more attractive for both lenders and investors,” he said.
Prof Abel Kinyondo of the Dar es Salaam University College of Education says local content regulations are encouraging miners to develop domestic capacity before seeking credit.
He noted that banks have traditionally avoided lending to risky sectors, preferring personal loans. However, Tanzania’s mining sector, dominated by gold, is now a major economic driver.
“The sector’s contribution to GDP has jumped to 10.5 percent from just three percent previously, with gold accounting for 80 percent of mining revenues. Rising global gold prices have made the industry increasingly attractive, reducing investment risk,” said Prof Kinyondo who specialises in Development Economics.
Deputy Minister for Minerals, Dr Steven Kiruswa, said that the formalisation of the sector has increased confidence among banks.
“Previously, the sector was largely informal. Today, with registered operators, proper record-keeping, and clear documentation of activities, banks are more willing to provide financing. Government licenses and geological tariffs have also played a key role in building this trust,” he said.
The trend in the credit growth to Tanzania’s mining and quarrying sector indicates that financial institutions are increasingly channelling funds into mining projects, which are seen as strategic for export earnings and foreign exchange generation.
According to the report, Tanzania export earnings climbed to $17.6 billion in 2025, up from $15.97 billion in 2024.
The increase was largely driven by gold, travel services, manufactured goods and traditional exports.
Exports of goods rose to $10.28 billion in 2025 from $9.12 billion the previous year while gold remained the standout performer, accounting for 45.7 percent of total goods exports.
Gold export earnings jumped by 37.4 percent to $4.7 billion, supported by favourable global prices and increased production.
The BoT noted that the precious metal was the single largest contributor to export growth during the year.
“Gold exports, which accounted for 45.7 percent of total goods exports, benefited from favourable global prices and increased production,” the central bank said.
Register to begin your journey to our premium contentSubscribe for full access to premium content
