Tanzania has large reserves of important minerals that promise vast economic opportunities capable of transforming the social and economic fortunes of the country, and contributing meaningfully to the global energy transition. Manufacturing Africa’s latest report outlines our perspective on Unlocking Tanzania’s Mineral Value Addition Potential. The report was developed in collaboration with the Tanzanian Ministry of Minerals and is based on 50+ interviews and workshops with key private and public sector stakeholders.
Tanzania’s mineral sector is a cornerstone of its economy. In 2024 the sector accounted for 10.1% of the country’s GDP, surpassing the government’s 2025 target. Beyond its financial contributions, the mineral sector employs over 6 million people in production and related services, underscoring its importance to livelihoods and national development.
To maximize the potential of its mineral wealth, the Tanzanian government has developed the Tanzania Critical and Strategic Minerals Strategy. This strategy emphasizes beneficiation and local value addition, aiming to optimize the economic benefits of the country’s resources.
Prioritized minerals and opportunities
The Tanzanian government has identified 25 critical and 18 strategic minerals that could drive economic growth and position the country as a key player in the global energy transition. Some of these minerals are gold, limestone, graphite and rare earth elements (REEs) like praseodymium (Pr), and neodymium (Nd). For example, the country holds 6% of the world’s graphite reserves, essential for lithium-ion battery anodes used in energy storage and electric vehicles. Nd-Pr metals are crucial for high-performance magnets in electric vehicle motors and wind turbines, both vital for a low-carbon economy.
With the acceleration of the global energy transition, demand for critical minerals like graphite and rare earth elements (REEs) is growing. At the same time, countries are diversifying supply chains to mitigate risks and ensure stable access to these materials. This dual trend presents Tanzania with a unique opportunity to establish itself as a reliable supplier in the global market, supporting the energy transition while enhancing its economic and strategic standing.
Tanzania is already taking steps to capitalize on this opportunity. Several large-scale mining projects are underway, including the Mahenge and Epanko graphite mines, each expected to produce over 60,000 tonnes annually, and the Ngualla Rare Earths Project, projected to yield 37,000 tonnes of REE metals per year. These projects position Tanzania to become a significant player in the global supply of critical minerals.
To fully realize its potential, Tanzania must scale up local mining operations and develop vertically integrated production capabilities. China presently dominates the global market for spherical graphite and REE metals, producing over 90% and 70% of these materials, respectively. With its abundant reserves and competitive energy costs, Tanzania has the potential to offer a competitive alternative to Chinese suppliers. Achieving this will require significant investment and development over the medium term, within the next three to seven years.
Unlocking Value Addition Opportunities
Beyond mining, Tanzania’s Critical and Strategic Minerals Strategy identifies opportunities for value addition along the mineral value chain. Using a “push-pull” approach, the strategy prioritizes minerals based on production potential and regional demand for intermediate and end-use products. This analysis has identified 11 minerals—six critical (graphite, REEs, nickel, iron, copper, and cobalt) and five strategic (gold, limestone, phosphate, potash, and synergistic minerals)—as having the highest potential for local value addition.
For these 11 minerals, 14 value addition opportunities have been identified, with the potential to generate $7.2 billion to $11.7 billion annually. These opportunities span intermediate and end-use products, including gold bars and jewelry, cement, ceramics, and spherical graphite for battery anodes. Gold-related products are expected to be the largest contributors, with an estimated annual value of $4 billion to $7.4 billion. Non-gold opportunities, such as fertilizers, steel, and copper products, could add another $3.2 billion to $4.3 billion annually.
The value addition opportunities can be categorized into four groups based on ease of implementation and global competitiveness:
- Low-hanging fruit: Products like cement, ceramics, glass, and paper derived from strategic minerals address growing local and regional demand. These opportunities can be implemented relatively easily and could generate $800 million to $1 billion annually.
- No-regret opportunities: Gold bars and jewelry, have the potential to generate $4 billion to $7.5 billion annually. They are relatively straightforward to pursue due to Tanzania’s high gold production levels and expanding refining activities. However, challenges such as obtaining London Bullion Market Association (LBMA) certification for gold bars and developing jewelry production capabilities must be addressed.
- Big bets: Spherical graphite and Nd-Pr metals represent high-value opportunities critical to the global energy transition. Tanzania’s large graphite reserves and planned projects could make it a top five global producer by 2028. However, these opportunities require substantial investment, access to intellectual property, and collaboration with global players. Partnerships with international stakeholders will be crucial to unlocking these opportunities, which could generate $700 million to $1.1 billion annually.
- Opportunistic plays: Products like cobalt and nickel sulphate/metal, fertilizers, steel, and copper cathode/wire have a combined potential value of $1.6 billion to $2 billion annually. However, their feasibility depends on evolving domestic supply positions and global market conditions.Realizing these value-adding opportunities could significantly boost Tanzania’s economy. The sector has the potential to contribute 9% to 15% GDP growth within seven years, generating over $1 billion in annual tax revenue. Additionally, value-adding activities could create more than 25,000 direct jobs, improve livelihoods, and foster economic development.
To capitalize on these opportunities, Tanzania must attract critical investments, transfer advanced technologies and skills, and develop complementary industries. Partnerships with international public and private sector stakeholders will be essential. These collaborations can help Tanzania build the necessary infrastructure, scale up production, and establish itself as a regional powerhouse and competitive player in the global mineral value chain.
Dodoma – Presentation of Manufacturing Africa’s Perspective on Minerals Value Addition at the Mutual Prosperity Partnership Annual Dialogue in Dodoma co-chaired by Hon. Anthony P. Mavunde (Tanzania Minister of Minerals) and H.E. Marianne Young (British High Commissioner to Tanzania)
Conclusion
In conclusion, Tanzania’s mineral sector is poised for transformative growth. By focusing on value addition and leveraging its critical and strategic minerals, the country can position itself as a key player in the global mineral economy.
To access the detailed analysis, download the full report here and the accompanying appendix. For specific questions concerning the report, please email info@manufacturingafrica.org.
