Tanzania Aims to Increase the Contribution of Mining to the Country’s GDP.

The Ministry of Minerals is focusing on increasing revenue collection in order to increase the mining sector’s contribution to GDP.

Revenue collection is one of several high priority sectors that will have increased funding in the fiscal year 2021-2022.

Dr. Dotto Biteko, Minister of Minerals, presented his ministry’s budget projections, stating that the government’s objective for the fiscal year 2021/2022 is to collect 696,441,872,667, up from 547,735,863,597 in the fiscal year 2020-2021.

He stated that of the funds received thus far, 650,010,002,000/- (equal to 93.33%) will be presented to the Treasury, while 46,431,870,667/- (corresponding to 6.67%) would be used by institutions under the ministry.

According to him, the ministry will make efforts to develop small-scale miners and enable citizens to engage in the mining economy, and it will also support mineral value addition activities, trade and investment in the mining sector, and monitor the mining operations audit system.

Dr. Biteko stated that the ministry will foster and attract mining commerce with other African nations, particularly the East African Community, the Southern African Development Community, and the Great Lakes Region, in order to make Tanzania a mining center.

He also stated that the ministry will strengthen its institutions’ capabilities to carry out their tasks efficiently, particularly through developing human resources and enhancing the working environment.

In order to improve tax collection and increase the mining sector’s contribution to GDP, Minister Biteko informed the House that his ministry will assist the control and administration of big and medium-sized mining operations so that both the nation and investors benefited equally.

He stated that the government, through the ministry, will put in place methods to combat mineral smuggling and illegal trading in the nation by bolstering mining markets.

‘We will develop and enhance the Kalema gold market, open and manage large-scale mining, and prioritize graphite and other minerals,’ added the minister.

He went on to say that the government will establish ways to enhance the market for Tanzanite and other gemstones in order to increase income and ensure that all big and medium-sized mines employ people and buy services and goods from the country at a reasonable price.

In promoting small-scale miners and enabling citizens to participate in the mining economy, the ministry would design and strengthen the implementation of programs to enable them to carry out their activities effectively by allocating areas or providing licenses with basic geological information.

He stated that the government would connect small miners with banks so that they could obtain loans, as well as provide low-cost research services, develop small, medium, and large-scale miners, and provide them with mining and refining skills training.