The mining industry in Tanzania has seen rapid growth over the last decade, becoming a key driver of the country’s economy. However, like many emerging sectors, it faces both significant challenges and substantial opportunities that shape its future.
Infrastructure Development: Mining activities, especially in remote areas, are often hindered by inadequate infrastructure. The transportation of minerals, lack of reliable electricity, and limited access to modern technology can slow production and increase costs.
While ASM contributes significantly to the country’s mineral output, it also presents challenges in terms of safety, environmental degradation, and compliance with legal standards. ASM operators often lack proper equipment, leading to inefficient and hazardous practices.
Access to Financing: Securing adequate funding for large scale mining projects can be a challenge, especially for local players. International investors may be deterred by perceived risks, including political instability and fluctuating commodity prices.
Tanzania is home to vast reserves of minerals, including gold, copper, nickel, cobalt, and rare earth elements. With the global shift towards renewable energy, there is growing demand for battery metals like lithium and cobalt, positioning Tanzania as a key player in the green energy transition.
