Faith Nyasuguta
Tanzania has introduced new restrictions preventing non-citizens from participating in certain business activities reserved exclusively for fully Tanzanian-owned companies, in a move aimed at strengthening local participation in the mining sector.
The directive was announced on April 27, 2026, by the nation’s Minister of Minerals, Anthony Mavunde, during a parliamentary session in Dodoma, as he presented the ministry’s budget for the 2026/27 financial year.
Under the new policy, foreigners will be barred from engaging in the distribution of goods and provision of services that have been officially designated for companies that are 100 percent Tanzanian-owned. The measure forms part of a broader effort to implement the country’s Local Content Policy, which prioritises domestic businesses in key sectors, particularly mining.
Tanzania’s mining industry – one of the largest contributors to national revenue – has been at the centre of reforms in recent years. The government has increasingly pushed for greater local ownership and participation, arguing that more value should remain within the country rather than flowing abroad. Key minerals include gold, diamonds, and tanzanite, with gold exports alone accounting for a significant share of foreign exchange earnings.
Minister Mavunde said regulators will enforce compliance by requiring mining licence holders to procure goods and services locally where available. Authorities will also maintain and publish an official list of services and supplies that must be sourced exclusively from Tanzanian-owned firms.
The policy is also tied to stricter Corporate Social Responsibility (CSR) expectations, with mining companies expected to contribute more directly to local communities through employment, procurement, and development projects.
Tanzania’s approach reflects a wider trend across Africa, where governments are seeking to maximise benefits from natural resources by strengthening local industries. Similar local content frameworks exist in countries such as Nigeria and Ghana, particularly in oil, gas, and mining sectors.
However, such policies can be a balancing act. While they are designed to build domestic capacity and create jobs, they may also raise concerns among foreign investors about market access and operational flexibility.
For Tanzania, the government appears committed to tightening control over how mining-related business is conducted, positioning local firms at the centre of the value chain as it seeks to transform resource wealth into broader economic growth.
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