Several key commodities mined in Tanzania – including graphite, lithium and rare-earth elements – are set to drive demand in the global energy transition this year as a global rush drives offtake of critical minerals, says KPMG Tanzania country managing partner Alexander Njombe.

Gold mining, refining, value addition and exports are also expanding in the country, buoyed by high gold prices and renewed demand.

“With gold as Tanzania’s largest export, KPMG will likely support projects in refining, value addition and export strategies,” adds Njombe.

Nonetheless, he tells Mining Weekly that Tanzania’s mining sector is diversifying from its historical reliance on gold into critical minerals, especially those essential for the global green economy.

Tanzania’s mining sector faces several obstacles that require strategic solutions, with the company being “well positioned to assist” with services.

“Regulatory uncertainty often creates hesitation among investors, but KPMG can help by advising companies on compliance and engaging with policymakers to promote stable, transparent frameworks,” adds Njombe.

Infrastructure gaps, particularly in transport and energy, hinder efficiency, and here, the firm can provide support for the development of public–private partnership models to mobilise investment and improve connectivity.

Environmental concerns are becoming more acute, and KPMG can assist with environmental, social and governance assurance and sustainability reporting to ensure that mining operations meet international standards while protecting local ecosystems.

Additionally, cyber risks are an increasing concern in the mining sector as operations become more digitalised and interconnected, he highlights, adding that mining companies face cyberattacks, data breaches and disruptions to automated and remote-controlled equipment, which can lead to safety incidents and production downtime.

KPMG can assist organisations in mitigating these risks by implementing robust cybersecurity frameworks, strengthening cyber controls, conducting vulnerability assessments and establishing incident response and recovery plans.

“This ensures operational resilience, protects critical assets and supports secure digital transformation,” adds Njombe.

Although there is a human capital gap in Tanzania’s mining sector, the company can contribute to lessening the impact by designing training programmes and workforce development initiatives that build local capacity.

These interventions not only address immediate challenges but also strengthen the country’s long-term competitiveness in the global mining space, he notes.

Developments

In terms of helping to achieve growth and diversification, KPMG intends to contribute to mining, minerals processing and logistics projects by linking mining with energy infrastructure – such as the Julius Nyerere hydropower plant – and transport corridors to boost efficiency.

“With strong government support and rising global demand, Tanzania’s mining industry is set to become a cornerstone of East Africa’s economic transformation, and KPMG is available to support in this journey,” assures Njombe.

Further, the firm is positioned as a strategic adviser, contributing to balancing economic growth, investor confidence and sustainability. It has played a significant role in shaping the country’s mining sector by advising on compliance, investment frameworks, sustainability reporting and assurance, he says.

Tanzania is ranked fourth in Africa for mining investment, and KPMG has provided insights into evolving mining tax policies, helping companies navigate changes in provisions regarding royalties, corporate tax and incentives.

“This has helped in improving transparency, building investor confidence and mitigating tax risks,” says Njombe.

The company will also support upcoming projects in gold, graphite and rare-earth minerals.

Through KPMG’s Tanzania budget briefs, the firm has highlighted mining’s role in GDP growth and advised on resource mobilisation strategies, as well as offered clarity to investors on local-content requirements.

Njombe notes that KPMG can assist in optimising mining operations by supporting companies in enhancing operational efficiency by establishing custom frameworks, controls and governance structures across operational workflows. The firm can also introduce digital solutions to handle supply chain management, predictive maintenance and cost optimisation.

The company can also advise on market entry and expansion strategies, conduct feasibility studies for new mining projects, and support mergers, acquisitions and broader investment decisions.

“KPMG also guides investors on structuring deals, joint ventures, and financing models,” concludes Njombe.