Tanzania’s mining sector is entering what may “prove to be its most consequential expansion cycle in decades”, underpinned by rising global demand for critical minerals, renewed investor confidence and a deliberate shift in national policy direction, reports African research and intelligence firm In On Africa consulting and strategy director Ogi Williams.

As the country positions itself within global supply chains for battery and industrial minerals, it is simultaneously navigating structural constraints that will determine whether this growth translates into sustained economic transformation, he adds.

Investment momentum in Tanzania’s mining sector has accelerated sharply, notes Williams, with total investment commitments across the economy reaching $10.95-billion in 2025, spanning 915 registered projects – more than triple the number recorded in 2021.

Mining has emerged as the central driver of this surge, with capital flowing into both traditional gold operations and a new generation of critical minerals including graphite, nickel, lithium and rare-earth elements, he says.

Gold mining company Perseus Mining’s Nyanzaga gold project represents the largest gold investment in over a decade, while graphite developments, such as Australian exploration company EcoGraf’s Epanko and Australian graphite producer Volt Resources’ Bunyu projects, positioning Tanzania within global battery supply chains.

In addition, metal producer Lifezone Metals’ Kabanga nickel project, “one of the most significant undeveloped nickel sulphide resources globally”, further reinforces the country’s relevance to electric vehicle value chains, says Williams.

Infrastructure development is also advancing in parallel with new mines in Tanzania, points out Williams.

Nonetheless, some infrastructure deficits, particularly in remote mining regions, and a reliance on diesel-based energy solutions, remain operational challenges, he notes.

In this regard, major rail investments and port concessions are strengthening connectivity between mining regions and export corridors, while value addition is increasingly prioritised, with seven mineral processing plants already operational and generating significant pre-export value.

At the same time, Williams says the government is attempting to broaden participation through initiatives such as the allocation of new mining areas for youth-led operations and targeted financing for small-scale miners, focusing on large-scale investment and inclusive growth.

“What distinguishes this investment cycle from previous surges is the structural nature of the demand driving it,” states strategic communications consulting firm GlobiQ International director James Woods.

He adds that Tanzania is no longer attracting capital on the back of gold prices alone, but is being pulled into the architecture of the global energy transition, thereby creating a fundamentally different and more durable growth dynamic.

“Tanzania’s current trajectory reflects a significant policy reset following a period of regulatory disruption between 2017 and 2020,” says Woods.

Since that period, reforms under President Samia Hassan have improved investor sentiment, with Tanzania rising materially in global rankings and strengthening its perceived investment attractiveness, adds Woods.

However, he notes that structural constraints remain, with regulatory complexity, including mandatory State participation and local ownership requirements, continuing to shape commercial viability for investors.

Enforcement actions, including licence revocations and compliance notices affecting large-scale mine operators underscore the State’s intent to enforce participation and performance, but also reinforce perceptions of policy risk, elaborates Woods.

As for smaller-scale growth, artisanal and small-scale mining continues to present governance and safety concerns, while human rights scrutiny around certain operations has introduced an additional layer of environmental, social and governance-related risk for international investors, says Woods.

However, while these issues are being addressed through policy measures, implementation at scale remains a critical variable.

“The ‘Samia reset’ has been meaningful, but it remains a work in progress. Investor sentiment has improved because the direction of travel is credible; but long-cycle capital needs more than direction, it needs predictability across administrations, and that test hasn’t yet been taken,” adds Woods.

Geopolitics, Critical Minerals Advantage

Global geopolitical tensions, particularly between major economic powers, are reshaping mineral supply chains in ways that are structurally advantageous for Tanzania, says Williams.

Export controls and supply concentration in key minerals have triggered a rapid response from Western economies, including strategic reserves, new investment frameworks and increased focus on diversified sourcing, he adds.

Further, Tanzania has emerged as a strategically important jurisdiction, attracting simultaneous investment from both Chinese and Western actors, with Chinese-backed infrastructure and mining investments coexisting alongside European financing and integration into Western-aligned supply chains, explains Williams.

“This non-aligned positioning provides Tanzania with a degree of strategic flexibility that few resource-rich countries currently possess,” he states.

The investment and sector growth opportunity lies in leveraging this competition to accelerate domestic beneficiation and move up the value chain; but doing so will require sustained policy clarity and strong institutional capacity, says Williams.

“What makes Tanzania particularly compelling in the current environment is its ability to engage across competing geopolitical blocs without overcommitting to any single one. That flexibility creates opportunity, but it also raises the importance of disciplined policy execution to ensure long-term value is retained domestically,” concludes Williams.