Tanzania will retain 10% of gross mineral revenue collections under a new government initiative aimed at transforming small-scale mining into a more structured, data-driven and investable sector. The measure, announced under the 2026/27 budget, will establish a Mineral Research Fund dedicated to financing geological surveys, mineral research and strategic interventions designed to improve productivity and reduce operational risk.
Minister for Minerals Anthony Mavunde said the initiative reflects President Samia Suluhu Hassan’s drive to address long-standing structural challenges facing small-scale miners such as limited geological data, restricted access to finance and outdated technology. He said the lack of reliable geological information remains one of the sector’s most critical constraints, affecting investment decisions and limiting access to formal financing. “Geological research is the foundation of productive mining. It helps miners understand the mineral potential of their licensed areas, make informed investment decisions, adopt appropriate technology and prepare bankable projects,” said Mavunde.
The government believes the new approach will reduce reliance on speculative mining practices and encourage operations based on verified data, modern techniques and improved business planning. According to the Ministry, small-scale mining accounts for roughly 40% of mining revenue and remains a key source of employment, particularly for youth and women. Despite its contribution, the sector continues to face financing gaps, limited exploration data and weak integration into formal financial systems.
Minister of State in the President’s Office (Planning and Investment), Kitila Mkumbo said the sector remains a critical pillar of Tanzania’s mining economy and requires targeted structural support. He said ongoing reforms aim to help miners scale from artisanal operations into medium and eventually large domestic mining enterprises. The government is also expanding geological mapping coverage under its Mining Vision 2030 strategy, which targets an increase from 16% to 50% national coverage by 2030.
State Mining Corporation (STAMICO) and the Geological Survey of Tanzania (GST) are supporting miners through drilling and exploration services, supported by 15 modern rigs deployed across mining regions. Officials say the new fund represents a structural shift toward research-led mining development, with emphasis on productivity, formalisation and financial inclusion.
