Tanzania Strengthens Local Content Drive to Boost Mining Industry and Economy

Tanzania is intensifying efforts to ensure its growing mining industry delivers broader economic benefits by strengthening local businesses, expanding domestic manufacturing, creating jobs and developing technical skills.

The government is placing greater emphasis on Tanzanian participation across the mining value chain, including local manufacturing, technology transfer, skills development and the use of domestic suppliers and service providers.

During a visit to Max Steel Limited in Dar es Salaam, Mining Commission Commissioner and Chairperson of the Local Content Committee Dr Theresia Numbi highlighted the importance of building stronger domestic enterprises. She warned that small and medium-scale miners could be left behind without access to appropriate technology, expertise and locally manufactured equipment.

Numbi stressed that local content is not only about establishing factories but also about developing the skills and capabilities needed to sustain Tanzania’s industrial base.

Max Steel Chief Operating Officer Bhavna Pandya said local content should ultimately be measured by Tanzania’s ability to manufacture and deliver products domestically rather than simply by where companies purchase their equipment. The company currently fabricates about 800 tonnes of industrial equipment each month and plans to increase capacity to 1,200 tonnes as mining demand grows.

However, local manufacturers continue to face challenges, particularly higher production costs caused by duties and taxes on imported raw materials. These costs can make locally manufactured products less competitive against imported finished goods.

Pandya called for a policy environment that recognises the wider economic benefits of domestic manufacturing, including employment, skills development and increased tax revenues.

The Local Content Compliance Forum, which brought together government officials, mining companies, contractors and manufacturers, reflects Tanzania’s effort to move beyond basic regulatory compliance and develop a competitive domestic mining supply chain.

For Tanzania, the long-term objective is to transform local content from a procurement requirement into a foundation for industrial development, ensuring that a greater share of the value generated by mining remains within the country.