• Anthony Mavunde remains in office as Tanzania prepares new mining reforms

• President Hassan plans a mining sovereign fund and a multi-mineral refinery

• Government aims to boost local value and expand critical minerals projects

In Tanzania, Mines Minister Anthony Mavunde (photo) is among the officials retained in the new government formed by President Samia Suluhu Hassan. The leader, re-elected last October, has announced the upcoming creation of a sovereign wealth fund dedicated to the mining sector, along with broader reforms to increase its contribution to the economy. Mr Mavunde will remain in office to lead this policy.

Active in politics since his youth, the current Mines Minister joined the government for the first time in 2015 as Deputy Minister of Labor until 2020 under President John Magufuli. He was called back in 2023 by his successor to take over the Mines portfolio. Under his leadership, the sector’s share of GDP reached 10.1 % in 2024 (up from 6.8 % in 2020), surpassing by one year the target set in the 2021/22–2025/26 five-year development plan.

President Hassan is now setting new goals, including the creation of a mining sovereign wealth fund. In her speech at the opening of the National Assembly plenary session on November 14, she described it as a long-term investment tool meant to protect current mining revenues.

“Minerals are not like maize, where after harvesting you set aside seeds for replanting. Minerals have an end. We are doing this so that when future generations arrive and find only pits, they will also find funds to support their livelihoods,” she said.

In addition to the new fund, Ms Hassan announced her intention to have a refinery built in Tanzania by 2030 to process several minerals. The project is expected to end the export of raw minerals and create local jobs. She also said the national strategy for critical minerals is being finalized. It will identify the types, locations, and quantities of critical minerals available in the country.

Tanzania already produces graphite, used in electric vehicle batteries, and will soon begin large-scale rare earth mining with the Ngualla project. Used in the automotive and wind industries, rare earths are among critical minerals whose supply is concentrated in China. Tanzania is therefore positioning itself as an alternative to this dominance. The country also hosts lithium, another metal in rising demand due to the energy transition.

The priorities set by Samia Suluhu Hassan for her Mines Minister are significant. Mr Mavunde will have to overcome several challenges to meet his targets. Tanzania will need to mobilize the substantial investments required for the refinery, at a time when the ban on exporting several raw minerals has not yet increased local processing.

In addition, prices for some critical minerals, including lithium and graphite, have declined in recent years, temporarily reducing certain investments. Finally, the creation of a sovereign wealth fund alone does not guarantee long-term prosperity without efforts to ensure sound management of mining revenues and diversify the economy, as the case of Botswana illustrates.