Strategic Benefits of Uranium Mining and Processing in Tanzania: A Pillar Toward Vision 2050

As the world intensifies its shift toward low-carbon energy sources, uranium has re-emerged as a critical strategic mineral for clean energy generation through nuclear power. For Tanzania, the untapped potential in uranium mining presents a rare opportunity not only for economic growth and industrialization but also for cementing the country’s position in the global clean energy value chain.

With its substantial reserves and a supportive investment climate, uranium development could become a transformational sector, accelerating the realization of Tanzania’s Development Vision 2050, which aims to create an inclusive, competitive, green, and industrialized middle-income economy.

Tanzania’s Uranium Reserves: A Hidden Energy Asset

According to data from the Ministry of Minerals, Tanzania is estimated to have over 139 million tonnes of uranium ore, largely located in Mkuju River (Namtumbo District, Ruvuma) making it one of the most promising uranium fields in Africa. If fully operational, this reserve has the potential to support more than 22 years of continuous extraction at a competitive global scale.

This positions Tanzania to join other top uranium producers such as Niger, Namibia, Kazakhstan, and Canada countries that have built resilient mining economies based on uranium exports.

1. Economic Growth and Revenue Generation

The mining sector contributed 10.1% to Tanzania’s GDP in 2024 and is projected to rise to 10% or more by 2030. With the inclusion of uranium in the extraction mix, the GDP contribution can grow faster, particularly through:

• Royalties and taxes: Uranium extraction could contribute hundreds of billions of Tanzanian shillings annually, through royalties, corporate taxes, and license fees.
• Foreign exchange: Tanzania can become a net exporter of uranium, generating USD $250–500 million annually in foreign exchange earnings (based on global uranium spot prices and production projections).
• Government revenue: Mining contributed TZS 1 trillion in mining tax revenue, with TZS 312.75 billion collected by October Fiscal year 2024/2025. Uranium has the potential to push this figure higher through direct and indirect taxes.

2. Employment and Local Economic Development

The uranium value chain from exploration, extraction, processing, logistics, to decommissioning offers massive employment potential.

• 4,000+ direct jobs are expected during full-scale operations at Mkuju River alone.
• Over 100,000 indirect jobs are projected in logistics, services, and small businesses supporting mining operations (source: African Mining Market, 2024).
• From 2021 to 2023, Tanzania’s mining industry already employs over 19,356 workers (97% Tanzanians). Expanding to uranium means creating more opportunities for engineers, technicians, geologists, environmental experts, and construction workers. This directly supports Vision 2050’s Pillar

3. Strategic Investment and International Partnerships

Tanzania has already attracted serious global interest:

• Uranium One, a Russian-Canadian company, owns a majority stake in the Mkuju River Project, which holds a Special Mining License and Environmental Impact Assessment clearance.
• The Mining Act (2023/24) now mandates the government to hold at least 16% free-carried interest in strategic mineral projects, ensuring local ownership and profit-sharing.

This aligns with Vision 2050’s goal of fostering inclusive investment that benefits both citizens and international investors through transparent partnerships.

4. Industrial Development and Value Addition

Processing uranium locally (via refining or yellowcake production) will generate additional income and technological transfer.

• It will boost sectors such as engineering, chemical manufacturing, infrastructure development, and logistics.
• Generates demand for high-precision tools, safety equipment, and environmental monitoring technologies, which can stimulate broader industrial innovation.

This is central to Vision 2050’s Industrialization Agenda, which prioritizes local value addition, export diversification, and science-led growth.

5. Regional Influence and Geopolitical Leverage

As more countries in East and Southern Africa consider nuclear energy as part of their clean energy mix, Tanzania’s uranium may become a regional export hub. Potential buyers include Kenya, South Africa, Egypt, Ghana, and emerging players in Asia.

• Tanzania's position within the African Continental Free Trade Area (AfCFTA) blocs offers access to a market of over 1.3 billion people and supports cross-border uranium supply chains.
• Tanzania’s growing influence as a “green minerals” powerhouse alongside lithium, nickel, graphite, and rare earth elements strengthens its geopolitical standing in Africa and beyond.

6. Energy and Environmental Strategy

While Tanzania is not currently planning nuclear energy production, uranium development enhances the country’s long-term energy security roadmap.

• Global demand for nuclear energy is expected to double by 2050, according to the IEA.
• Uranium exports support global carbon-reduction goals, positioning Tanzania as a critical contributor to global climate mitigation efforts.
• This aligns with Vision 2050’s Environmental Sustainability pillar, which promotes low-emission economic models.

7. Strengthening Institutional and Regulatory Frameworks

The government is improving the legal and institutional framework to ensure uranium mining is:

• Safe: With radiation protocols, international safety standards, and environmental impact assessments.
• Transparent: Through digital mining cadastres and public-benefit tracking mechanisms.
• Inclusive: With community benefit-sharing, local employment quotas, and capacity building programs for youth and women.

These efforts align with Vision 2050’s emphasis on governance, transparency, and sustainability.

Key challenges to address in this uranium project and its suggested mitigation strategy

Despite its vast promise to Tanzania's economy, uranium development must be carefully managed in the following ways;

1.     Environmental and radiation risk can be controlled by strict monitoring by the International compliance (The International Atomic Energy Agency (IAEA’) 

2.     Long wait for project timeline by streamlining licensing, fast-tracking approvals

3.     Market volatility by ensuring long-term supply agreements with stable buyers in the world market

4.     Community engagement by early involvement, fair compensation, and CSR investment

5.     Infrastructure needs are met by creating public-private partnerships in roads, rail and energy.

Uranium Mining as a National Strategic Opportunity

Uranium mining in Tanzania is not just about minerals; it is about transformation. It presents a timely opportunity to generate jobs, boost revenues, attract investments, support energy transitions, and move the nation closer to its 2050 development aspirations.

With the right policies, partnerships, and protections, Tanzania can become a model in Africa for green mineral development, benefitting current and future generations.