(Dar es Salaam) – Tanzania is taking bold steps to boost its production of strategic minerals and transition toward clean energy while addressing economic realities.
During a forum organized by the Hakirasilimali Institute earlier this month, Minister of Minerals Anthony Mavunde revealed Tanzania’s strategic plan to harness its wealth of minerals, including graphite. He noted that this initiative aims to position the country as a global leader in strategic mineral production. Currently, Tanzania is the third-largest producer of graphite in Africa, following Madagascar and Mozambique, accounting for 0.64% of global demand.
Highlighting Tanzania’s potential, Minister Mavunde cited the work of a small-scale miner, God Mwanga, in Handeni District, Tanga Region, as an example of local contributions to the sector. He also mentioned 12 dormant mining licenses that, once operational, could make Tanzania Africa’s top graphite producer.
Despite this optimism, the success of such plans will depend on effective governance, sound policies, and addressing both local and international challenges. Studies suggest that countries with abundant strategic mineral reserves can unlock significant economic benefits, provided they adopt robust management practices.
Tanzania’s Graphite Status | Details |
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Current Rank in Africa | 3rd |
Global Production Share | 0.64% |
Major Competitors | Madagascar, Mozambique |
Potential Growth | With 12 licenses, could become Africa’s top producer |
John Oduk, a policy expert with the African Forum on Debt and Development (Afrodad), emphasized the need for African nations to collaborate in managing their strategic minerals. He drew comparisons with the Organization of the Petroleum Exporting Countries (OPEC) and advocated for unified policies to ensure fair and sustainable exploitation.
Professor Abel Kinyondo from the University of Dar es Salaam echoed these sentiments, calling for periodic reviews of existing laws and policies. He stressed the importance of addressing past challenges in mining contracts to ensure the nation’s resources benefit its citizens.
As the global energy transition toward clean energy gains momentum, Tanzania is poised to play a key role. Deputy Prime Minister Doto Biteko, who previously served as Minister of Minerals, noted that Tanzania’s strategic minerals and natural gas reserves could contribute significantly to combating climate change. Tanzania’s natural gas discoveries stand at 57.54 trillion cubic feet, with the majority located offshore and a portion onshore.
While clean energy is a priority, Deputy Prime Minister Biteko acknowledged the economic challenges of transitioning. He pointed out that clean energy technologies are costlier than traditional energy sources and stressed the need to balance sustainable development with the realities of economic growth.
Tanzania’s Energy Resources | Details |
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Natural Gas Reserves | 57.54 trillion cubic feet |
Offshore Discoveries | 47.4 trillion cubic feet |
Onshore Discoveries | 10.12 trillion cubic feet |
Reselian Manaiya, an international investment and trade advisor, recommended leveraging traditional fossil fuels to drive immediate economic growth while laying the foundation for renewable energy investments. He emphasized the importance of balancing environmental concerns with economic realities.
In the mining sector, Tanzania continues to see growth in exports of non-environmentally friendly resources such as coal. According to Minister Mavunde, export permits for minerals rose to 11,258 in 2023, up from 10,318 in 2022, driven by increased demand for gemstones and coal.
Efforts to bolster coal production include plans by the State Mining Corporation (STAMICO) to produce 600,000 tons of coal at the Kabulo-Kiwira site in 2024/25. The corporation is investing in new equipment to achieve this goal. Additionally, India’s Adan Group is set to produce 2,000 megawatts of electricity using Tanzanian coal, pending feasibility studies.