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Benefits of the Minerals Industry in Tanzania

The mining sector is an instrumental part of the Tanzanian economy and, given the quantity of natural resources still to be exploited, will continue to be so for a considerable period of time. Mining companies and their operations benefit Tanzanians and the Tanzanian economy through a variety of means including the following:

  • Revenue generation: 
    Mining companies pay taxes, duties and royalties more than Tsh250 billion every year. These revenues can be invested in public service provision, such as healthcare, education and infrastructure.
     
  • Job creation: 
    The mines create employment opportunities both directly for the mining companies and also indirectly throughout the Tanzanian economy thanks to the demand created by the industry’s presence. For every job created by a TCME member company, a further six jobs are generated thanks to the multiplier effect.  Long-term benefits are also accrued through training of employees and in some cases, skills training of local community members.
     
  • Creation of new business opportunities in local communities
    Mine sites generate new business opportunities in the local communities, particularly in providing services to the mine community, such as agriculture for food and textiles for clothing. TCME members source materials, services and supplies from Tanzanian companies, invest in Tanzanian infrastructure and pay wages to Tanzanians who spend more money in the local economy.
     
  • Improved infrastructure
    Mining operations require infrastructure in the form of roads, power and water. This infrastructure is frequently also made available to local communities, improving livelihoods.
     
  • Extensive corporate social investment (CSI) programmes:  
    Our members have comprehensive CSI programmes which benefit Tanzania and local communities in a number of ways, whether  it is environmental conservation, education, or healthcare provision.
     
  • Creation and support of international investor relationships:
    The activity of the mining sector in Tanzania has attracted investor attention and financial flows into the country thus encouraging continued and increased investment in the economy.
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