Economy

Kahama Industrial Park to position Tanzania as regional mining manufacturing hub

The initiative follows the conclusion of large-scale mining operations at Buzwagi and is being implemented to ensure that areas previously hosting major mines remain productive and continue contributing to the national economy

Dar es Salaam. The government has unveiled plans to transform the former Buzwagi mining area in Kahama District into a fully-fledged industrial park focused on the manufacture of mining-related goods and services, a move expected to position Tanzania as a key production hub south of the Sahara.

The initiative follows the conclusion of large-scale mining operations at Buzwagi and is being implemented in line with directives issued by President Samia Suluhu Hassan to ensure that areas previously hosting major mines remain productive and continue contributing to the national economy.

The minister for Minerals, Mr Anthony Mavunde, said on December 21, 2025, during an inspection visit to the Buzwagi industrial park site, that the government had deliberately set aside the area for industrial development in order to sustain economic activity in Kahama and expand value addition within the mining sector.

He said the President wanted the Buzwagi area to be repurposed into a centre of industrial activity capable of driving manufacturing, employment and innovation, particularly in industries linked to mining and mineral processing.

According to Mr Mavunde, more than 30 factories are planned across a range of sectors, including energy, education, mining inputs, mineral processing and the manufacture of specialised equipment and consumables used in mining operations, such as industrial components and spare parts.

He said at least 15 of the planned factories would specifically focus on the production of mining-related goods and services, an intervention aimed at reducing reliance on imports while strengthening domestic supply chains.

“The Buzwagi mine was a major pillar of Kahama’s economy. Its closure had the potential to disrupt local revenue and livelihoods. Establishing this industrial park is a strategic response to ensure that the area continues to generate jobs and economic opportunities for residents and the nation at large,” he said.

Mr Mavunde added that more than 30 investors had already expressed interest in setting up operations at the site, signalling growing confidence in the government’s industrialisation agenda and the mining sector reforms undertaken in recent years.

He said one investor, East Africa Conveyors Supplies, had already commenced production of mining-related equipment at the site, marking a significant milestone in local manufacturing.

“This is a critical development for the mining sector. Products that were previously imported are now being manufactured locally, helping to cut costs, retain foreign exchange and build local industrial capacity,” he said.

The minister also said the establishment of the industrial park was expected to create significant employment opportunities, particularly for young people, while stimulating the growth of ancillary businesses in Kahama and surrounding areas.

In a further boost to the project, Mr Mavunde disclosed that Tembo Nickel Company plans to construct a multi-metal refinery facility within the industrial park.

He said the facility would be among the largest of its kind in Africa and would employ modern hydrometallurgical technology, which is known for its efficiency and relatively low electricity consumption.

The refinery is expected to play a key role in advancing mineral value addition in Tanzania by processing various metallic minerals domestically, in line with government policy to maximise benefits from the country’s mineral resources.

The Buzwagi industrial park is part of broader efforts to align mining sector development with the national industrialisation drive, ensuring that mining contributes not only through extraction but also through manufacturing, skills development and long-term economic transformation.

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