Artisanal and small-scale mining in East Africa has always been a risky way to earn a living. Miners work in unsafe pits, buyers often hide the real prices, and government rules can change suddenly, making it hard for people to plan their work or their income.
However, Tanzania has made significant strides in reforming its mining sector, introducing a more transparent and supportive system for miners.
According to official data from Tanzania’s Energy Ministry, the country’s mining sector has seen significant growth, with its contribution to the economy rising from 7.3 per cent in 2021 to 10.1 per cent in 2024. Mineral exports have also increased, reaching $4.12 billion in 2024, with gold accounting for 83 per cent of exports.
Tanzania’s approach has led to increased sales, with official records showing TZS 1.93 trillion in sales between July 2023 and March 2024, up from TZS 1.68 trillion the previous year. The government has also collected TZS 133.8 billion in royalties and inspection fees, thanks to improved traceability.
The country’s mineral markets and trading centers have become more formalized, with 44 mineral markets and 114 trading centers now operational. This has enabled miners to sell their produce at fair prices, process their ore at safer centers, and receive payments through banks.
Good documentation has also helped miners access finance, with local banks providing TZS 187 billion in loans to small-scale miners between July 2023 and March 2024, up from TZS 145 billion in 2022.
In contrast, Uganda’s gold sector has faced challenges, including policy changes and administrative disputes. Despite being a leading gold exporter, with exports reaching $3.09 billion in 2024, the sector remains largely informal, contributing less than 1 per cent to Uganda’s GDP.
Uganda’s Permanent Secretary, Irene Batebe, acknowledges the challenges, stating, “The complaint from some artisanal miners is about the requirement for Environmental and Social Impact Assessment Studies. We are working closely with NEMA to address the cost and reduce the time it takes.”
The government has made efforts to formalize the sector, registering 7,000 artisanal miners and establishing regional offices to speed up approvals. However, Uganda’s reforms still lag behind Tanzania’s, with the country struggling to create a stable and supportive environment for miners.
Tanzania’s success can be attributed to its monetary system, which requires large mining companies to refine gold domestically and sell 20% to the central bank. This has helped stabilize prices and increased the country’s reserves. By June 2025, the Bank of Tanzania had bought 5,022.85 kilograms of refined gold, worth about USD 550 million.
Uganda is exploring similar measures, but for now, its mining sector remains vulnerable to shocks. As Batebe notes, “Government continues to fund exploration from the Consolidated Fund… We have secured $12 million from development partners to support exploration and quantification.”
The key to success lies in consistency and predictability, with miners needing reliable market access, clear regulations, and supportive inspections.
Ms Batebe emphasises that the legal protections are already in place: “The legal regime on minerals and public finance management establishes systems to ensure transparency and accountability… We continue strengthening systems to guarantee transparent management of mineral revenues.”
Tanzania’s experience shows that with the right policies and infrastructure, artisanal and small-scale mining can be a game-changer for the economy.