Tanzania’s Gold Mining Sector Transforms with Strategic Tax Cuts and Skills Development
Small-scale gold miners in Tanzania are experiencing a significant boost following the government’s strategic decision to reduce mineral trading levies. The tax cut from 7 to 4 percent for miners selling directly to the national gold purchasing centers aims to formalize trade and increase earnings for artisanal miners.
The innovative approach targets multiple objectives, including curbing gold smuggling, enhancing transparency, and strengthening the country’s foreign reserves. Regional authorities describe this initiative as a “golden opportunity” for miners to operate more transparently and improve their economic potential.
Key highlights of the new policy include:
– Reduced trading levy for direct gold sales to national centers
– Comprehensive skills development program for miners
– Enhanced focus on safe and sustainable mining practices
– Significant contribution to national economic growth
Small-scale miners, who currently contribute approximately 40 percent of Tanzania’s mineral revenue, will benefit from targeted training programs addressing critical challenges such as limited capital, technological constraints, and legal awareness.
The national skills development initiative focuses on equipping miners with essential technical and entrepreneurial skills. Training workshops are covering crucial areas including:
– Mineral identification
– Safe explosives handling
– Environmental management
– Financial literacy
– Value addition techniques
Preliminary results are promising, with the national gold procurement already exceeding targets. By June 2024, gold purchases reached 5.022 tonnes, valued at $554 million—substantially higher than the initial $350 million goal.
The mining sector’s GDP contribution has impressively increased from 9 percent in 2015 to 10.1 percent in 2024, with government revenue projections approaching 1 trillion, signaling a robust and transformative period for Tanzania’s mining industry.
