Tanzania’s Regulatory Overhaul Reshapes Its Mining Industry

Since 2017, Tanzania has aggressively rewritten its Mining Act to move beyond the role of a passive royalty collector. The government now mandates a 16% non-dilutive, free-carried interest in all large-scale mining licenses and enforces local content rules requiring Tanzanian firms to hold equity in both ventures and supply chains. This legislative shift has coincided with a surge in economic performance: mining’s contribution to GDP recently surpassed 10%, with gold exports hitting a record $4.7 billion last year.

President Samia Suluhu Hassan’s administration is currently testing this model through the massive Kabanga nickel project. A US-backed consortium, supported by Abu Dhabi’s L’imad Holding, is negotiating a stake in the site with plans for a local refinery to produce battery-grade nickel. This project serves as a barometer for Tanzania’s ability to attract international capital while insisting on in-country value creation. While some graphite projects like Nachu and Mahenge have stalled, the broader sector has secured roughly $3.3 billion in private investment over the last four years. By balancing Chinese, US, and Gulf capital, Tanzania is positioning itself as a template for resource-rich nations seeking to dictate their own terms in the global critical minerals market.