Dodoma. President Samia Suluhu Hassan has said the government is laying the groundwork for the establishment of a Mineral Sovereign Wealth Fund, a long-term financial and investment mechanism intended to safeguard the country’s mineral wealth for future generations.
Addressing the National Assembly in Dodoma on November 14, President Samia noted that the proposed fund is designed to ensure that the benefits from the country’s mineral resources endure even after extraction activities have ceased.
She observed that, unlike crops that can be replanted after harvest, minerals are finite, making it necessary to create a structured system that preserves their value in monetary and investment form.
“Minerals are not like maize, where after harvesting you set aside seeds for replanting. Minerals have an end. We are doing this so that when future generations arrive and find only pits, they will also find funds to support their livelihoods,” she said.
Tanzania is endowed with a vast array of minerals, though only 16 percent of the mineral-bearing geological area has been surveyed and subjected to detailed research.
According to the President, the government’s task over the next five years is to ensure the sector’s wealth translates more directly into public benefit.
The contribution of the mining sector to GDP has risen to 10 percent in 2024, up from 6.8 percent in 2020, a growth trajectory the government intends to deepen through policy refinement and intensified investment oversight.
Looking ahead to 2030, President Samia stated that the government is finalising its strategy for critical minerals, which will catalogue the quantities, types, and specific locations of these highly sought-after global resources.
She said the strategy will strengthen Tanzania’s ability to monitor and manage strategic minerals, particularly those essential for emerging technologies and global clean-energy transitions.
In efforts to bolster regulatory discipline, the government will review existing mining licences, repossess those that have not been developed, and reallocate them to capable investors able to advance production.
Further support will be extended to small-scale miners, who will gain access to geological information and modern mineral-processing equipment.
The aim, she noted, is to lift efficiency and improve the quality of their operations.
At the same time, the Bank of Tanzania will continue purchasing gold from artisanal and small-scale miners to ensure a predictable and secure market for their output.
President Samia also disclosed plans for Tanzania to establish a multipurpose mineral refinery by 2030, a move that will phase out the export of raw mineral concentrates and expand value-addition activities domestically.
The refinery is expected to create new employment opportunities, strengthen the value chain, and position the country competitively in the global minerals market.
She said these measures, combined with broader reforms across the mining landscape, will help ensure that Tanzania’s mineral wealth delivers sustainable prosperity while simultaneously preparing the foundation for future generations.
