Breaking the Dependency: How Tanzanians Can Reduce Reliance on Foreign Mining Firms?

Tanzania is one of Africa’s richest countries in mineral resources, especially Gold, Tanzanite, Graphite, and Nickel. Yet, despite this endowment, Foreign Multinational companies dominate the Mining sector, owning the largest mines, controlling exports, and earning the lion’s share of profits. This over reliance on external actors has limited Tanzania's economic returns, weakened local industrial capacity, and reduced Tanzanians' participation in the benefits of their own resources. But, why this dependency exists, and more importantly, how Tanzanians can reduce it through strategic actions, investment, and policy innovation.

Root Causes of Foreign dominance in mining sectors; Before proposing solutions, it's essential to understand what drives foreign control in mining sectors in Tanzania;

Capital and Technology Gaps: Mining requires large upfront investment and specialized technologies that are expensive and not widely available in Tanzania.

Policy Weaknesses: Until recent years, Tanzania had weak local content laws and loose contract terms favoring foreign firms.

Skills Deficiency: Limited mining Engineers, Geologists, and Project Managers reduce Tanzanians' leadership roles in mining sectors.

Export-Oriented Mindset: Tanzania focus on exporting raw minerals instead of developing domestic refining and manufacturing capacity.

How Tanzanians Can Regain Control of the Mining Sector;

1. Strengthen and Enforce Local Content Policies

Tanzania should focus in follows up of its strict and practical laws that require foreign mining companies to hire Tanzanian professionals in management and technical roles. Also, these law should state to source a percentage of goods and services locally and Partnering with local companies on joint ventures.

2. Support the Growth of Local Mining Firms

The Tanzania's government should provide low-interest loans, technical training, and tax incentives to promising Tanzanian mining startups and also, should empower parastatal companies like STAMICO to operate competitively alongside foreign firms. Again, it should attract Tanzanian diaspora investors to bring back capital and expertise.

3. Invest in Tanzanian Skills and Innovation

It is important for the government Establish specialized mining universities, labs, and research centers. Also, provide scholarships and internships to train Tanzanians in geology, metallurgy, mining law, and project management especially in on going mining operations like Geita gold mine.

4. Expand Domestic Value Addition

To Build refineries, smelters, and processing plants to reduce exports of raw ores and ensure that every mine has its refinery plant. Also the government should Incentivize the creation of jewelry and mineral-based manufacturing industries. As well as encouraging Tanzanians to start businesses in mining inputs (chemicals, equipment, transport).

5. Promote Strategic Joint Ventures

Encourage Tanzanian investors, pension funds, and cooperatives to take equity stakes in projects and use Public-Private Partnerships (PPPs) to ensure long-term benefits for local communities. Examples are Twiga Mine Company Ltd, which are owned by a Joint venture between Barrick Company Ltd and the Tanzanian Government.

6. Leverage Community and Regional Ownership

Give regional authorities or mining host communities shares in mining operations and Mandate Community Development Agreements (CDAs) with clear benefits: jobs, infrastructure, health, and education to boost community inclusion.

If Tanzanians want to fully benefit from their gold, graphite, tanzanite, and rare earth minerals, they must do more than just tax foreign miners they must become miners, managers, investors, and entrepreneurs. Reducing dependency is not about pushing out foreign firms, but about creating a strong Tanzanian mining ecosystem that can compete, collaborate, and thrive.