The mineral sector remains one of the leading contributors to the country's revenue, with significant foreign returns. In 2022 alone, minerals worth USD 3.4 million (over Tsh.7 trillion) were sold outside the country, accounting for 56% of all total product sales. This is compared to USD 3.1 million (45.9%) sold during the same period in 2021. The Minister for Minerals, Dr Dotto Biteko, revealed these figures while presenting the 2023/2024 budget for his ministry to Members of Parliament. He requested approval of Tsh.89.4 billion for both recurrent and development expenditures.
Dr Biteko also highlighted the increasing contribution of internal tax revenue in the mineral sector, which had reached Tsh.2.1 trillion (15.8% of total internal tax revenue) in 2021/2022, compared to Tsh.1.1 trillion(10.3%) in 2020/2021. He noted that the government had established 42 markets and 93 mineral buying centers as of March 2023, contributing significantly to government revenue collections. Sales in these markets and centers had soared to Tsh.1.7 trillion between July 2022 and March 2023.
Dr Biteko also addressed the issue of mineral smuggling, stating that the government had sealed loopholes to prevent Tanzanian gemstones from being smuggled out of the country. The Ministry, in collaboration with other State agencies, had seized different types of minerals valued at Tsh.532.4 million.
The mineral sector has also played a significant role in contributing to the country's Gross Domestic Product (GDP). Due to efforts taken by the government under President Samia Suluhu Hassan, the sector's contribution to the GDP had increased from 4.4% in 2017 to about 7.2% in 2021. During the first quarter of 2022, the sector grew by 9.8%, with its contribution to the GDP increasing to 9.7% compared to 7.9% during the same period in 2021. Dr Biteko expressed optimism that the trend would continue, and minerals might contribute up to 10% of the country's GDP by 2025, as projected in the National Development Vision.
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