Dar es Salaam. Tanzania has recorded significant progress in regulating the trade of minerals following the establishment of formal mineral markets across the country.
The system has improved transparency, strengthened government revenue and created wider opportunities for miners and traders.
Before 2019, trade in gold and gemstones in Tanzania was largely informal, especially among small-scale miners and traders.
Transactions often took place without designated trading centres.
The absence of formal markets created several challenges.
These included unclear pricing, fraudulent weighing systems and disputes over mineral quality.
Cases of fake gold also emerged.
In addition, large quantities of minerals were smuggled out of the country.
As a result, miners and traders suffered financial losses while the government lost potential revenue.
Major reforms began in 2019 following amendments to the Mining Act enacted in 2017.
The changes paved the way for the establishment of the country’s first mineral market in Geita, followed soon after by another in Chunya.
The move marked the beginning of a new trading system designed to ensure transparency, security and fairness in mineral transactions.
Today, Tanzania has 44 mineral markets and 114 mineral buying centres operating across the country.
These facilities provide safe trading spaces for miners and dealers.
They also offer official price guidance and help protect participants from fraud.
At the same time, the government is able to collect the revenue due from mineral sales.
The presence of these markets and buying centres has attracted many Tanzanians into the mineral economy, particularly in the small-scale mining sector.
Supportive systems, transparency and clear legal frameworks for mining and trade have strengthened confidence in the sector.
The system has also drawn international attention.
Several African countries have visited Tanzania to learn about the model.
These include Zambia, Malawi, Burundi, Uganda, Kenya and the Democratic Republic of Congo.
Recently, a delegation from Burkina Faso also visited the country to study the framework.
Official figures show strong growth since the introduction of mineral markets.
In the 2018/19 financial year, mineral sales through the market system reached Sh8 billion annually, revenue that previously went unrecorded.
By the 2021/22 financial year, government revenue collected through the markets alone had risen to Sh264.09 billion.
Trade volumes have continued to increase.
In the 2023/24 financial year, mineral transactions valued at Sh2.095 trillion and Sh1.926 trillion respectively were conducted through these markets.
The trend highlights sustained growth in government revenue and increased transparency in Tanzania’s mineral trade.
