Stakeholders push for inclusive, sustainable mining in Tanzania

Dodoma. Stakeholders in the extractive sector have put forward wide-ranging recommendations to boost transparency, diversify revenue streams, enhance community benefits, and protect Tanzania’s mineral wealth for future generations.

The proposals followed the conclusion of the 10th Extractive Industry Forum, recently held in Dodoma and organised by HakiRasilimali.

The three-day forum brought together a broad coalition of stakeholders, including representatives from Parliament, local authorities, government ministries, civil society, academia, the private sector, and international organisations.

The recommendations focus on advancing reforms to promote good governance, equity, and sustainability in Tanzania’s mining sector.

Reducing reliance on gold

Participants raised concerns over Tanzania’s continued overdependence on gold as the main source of mineral revenue.

They urged intensified geological surveys and targeted incentives to attract investment in other critical and strategic minerals.

“We must break away from gold dependency and unlock the full scope of Tanzania’s mineral potential,” said Tanzania Women in Mining and Mineral Industry (TWiMi) Chairperson Mecktilder Mchomvu.

“Diversifying our mineral base will cushion the economy from global price shocks and attract more varied investment,” she added.

Stricter investor vetting before licensing

Discussions underscored the importance of thorough due diligence before issuing mining licences.

Stakeholders called for a standardised mechanism to assess the financial and technical capacities of prospective investors, particularly those involved in medium- and large-scale operations.

“Licences should not be granted based on unverified commitments. We need enforceable systems that confirm an investor’s capacity to deliver, with clear timelines and compensation safeguards for affected communities,” said Mr Hans Merkert of the International Peace Information Service (IPIS), Belgium.

Empowering small-scale miners with modern technology

The forum also addressed the technological divide facing small-scale miners.

Stakeholders called for increased access to environmentally friendly and efficient mining technologies to enhance safety, productivity, and sustainability.

“Modernising artisanal mining is a matter of social justice. Small-scale miners deserve tools that are safe and environmentally sustainable,” said a lecturer at the University of Dar es Salaam, Dr Japhace Poncian.

Proposal for a national mining bank

Stakeholders supported the Federation of Miners Association of Tanzania (FEMATA)’s proposal to establish a dedicated bank for small-scale miners.

The forum urged government support for the initiative, particularly to address financing gaps in the gemstone subsector.

“Commercial banks don’t recognise gemstones as valid collateral. A dedicated mining bank could revolutionise access to capital for thousands of miners,” said a Tanga-based gemstone trader, Ms Salome Kingdom.

Auditing and renegotiating existing contracts

There was broad consensus on the need for a national audit of existing mining contracts, to revise provisions that grant excessive tax exemptions or fail to maximise public benefit.

“Some agreements were signed under pressure or lacked sufficient oversight. We must align all contracts with national interests, African Union protocols, and principles of transparency,” said a representative from the Vice President’s Office (Environment Division), Mr Epahroditius Sabuni.

Tanzania’s role in the energy transition

Regarding the energy transition, delegates stressed the urgency of developing a national framework to guide Tanzania’s participation in the global initiative.

They called for a “Just Energy Transition” that fosters inclusive development, equitable access to energy, and local empowerment.

“We cannot talk about a green future while millions still rely on firewood and live without electricity. Our strategy must reflect the lived realities of Tanzanians,” said Swiss Aid Tanzania Programme Officer, Ms Alice Swai.

Enhancing local value addition

Calls to scale up value addition in the mining sector echoed sentiments from previous forums.

Delegates recommended greater investment in local training for gem-cutting, polishing, and jewellery production to retain more wealth within the country.

“Value addition is crucial for job creation and industrialisation. We must stop exporting raw minerals only to import finished products,” said a mining consultant based in Arusha, Mr Ernest Mallya.

Establishing a sovereign mineral wealth fund

The forum also recommended the establishment of a sovereign wealth fund to manage mineral revenues more sustainably.

The fund would support investments in health, education, and infrastructure, while serving as a financial buffer during economic shocks.

“A mineral fund ensures we don’t deplete today’s resources at the expense of tomorrow. It’s a tool for long-term resilience and national development,” said a representative of Policy Forum, Ms Gloria Mdemu.

Broadening the Kimberley Process scope

The forum also urged Tanzania to adopt a more comprehensive interpretation of the Kimberley Process, expanding its focus beyond conflict diamonds to include issues such as environmental degradation and human rights abuses linked to diamond mining.

“We need a Kimberley Process that responds to Tanzanian realities, not just external definitions,” said Mr Charles Mwakiteleka of HakiRasilimali.

Legal framework for community grievance mechanisms

Another key proposal was the enactment of legislation requiring mining companies to establish accessible grievance redress mechanisms for communities.

“Communities deserve fair, timely, and transparent avenues for addressing complaints. Such mechanisms are vital for building trust and preventing conflict,” said a legal officer at the Legal and Human Rights Centre (LHRC), Ms Martha Rugemalira.

Boosting regional cooperation on critical minerals

The forum concluded with a strong call for increased regional collaboration on critical minerals vital to the global energy transition.

Recommendations included establishing joint mineral processing hubs, promoting collaborative research, and developing unified African negotiating positions in global forums.

“Africa must act strategically and speak with one voice,” said Merkert of IPIS, adding: “Tanzania can lead by building smart partnerships across the region.”