How to tap into mineral hubs to shape mining economy of a country
Across Tanzania, a growing network of government-regulated mineral markets is transforming what was once a fragmented informal trade into a structured, transparent system.
FRIDAY March 13, 2026
By Adam Ihucha
The Tranquillity News Correspondent, Tanzania
In the rugged mining landscapes of Tanzania, a quiet but profound transformation is reshaping one of Africa’s most resource-rich economies.
Only a few years ago, much of the country’s gold and gemstone trade — particularly among artisanal and small-scale miners — unfolded in informal settings.
Transactions took place in scattered villages, roadside buying points or improvised trading hubs.
Prices fluctuated wildly, measurements were frequently disputed, and counterfeit gold sometimes entered the market.
For miners and traders alike, the risks were substantial: Unfair pricing, fraud and the persistent threat of smuggling that drained valuable minerals from the country while depriving the government of critical revenue.
Today, that landscape looks markedly different.
Across Tanzania, a growing network of government-regulated mineral markets is transforming what was once a fragmented informal trade into a structured, transparent system — one that is increasingly attracting the attention of investors and policymakers across Africa.
A turning point in mining reform
The shift began with reforms to the national mining framework, including amendments to the Mining Act in 2017.
Two years later, the government introduced a bold policy initiative: The creation of formal mineral trading hubs.
The first markets opened in the gold-producing towns of Geita and Chunya, regions long known for their rich mineral deposits.
The idea was simple but powerful: Establish secure, regulated marketplaces where miners and traders could meet, weigh and sell minerals under official supervision.
The results have been swift and far-reaching.
Today Tanzania operates 44 mineral markets and roughly 120 smaller mineral buying centres nationwide.
These hubs provide miners with secure locations to sell their production, ensure transparent price discovery and protect traders from fraudulent transactions.
For the government, the benefits are equally significant. Formal trading channels ensure that taxes and royalties are collected efficiently, strengthening public revenues from one of the country’s most strategic sectors.
Unlocking the potential of small-scale mining
Artisanal and small-scale mining has long played a crucial role in Tanzania’s economy, supporting hundreds of thousands of livelihoods in rural areas.
By introducing regulated mineral markets, authorities have effectively integrated many of these miners into the formal economy.
The impact is visible across Tanzania’s mining belts. In Chunya, for example, gold production has surged dramatically.
Regional mining officials report that output has increased from around five kilograms per month before the markets were established to approximately 300 kilograms monthly today.
The ripple effects extend well beyond the mines themselves. Mineral markets have catalysed the growth of local service industries, from logistics and security to registration services and trading operations.
Around these hubs, new economic ecosystems are emerging, providing employment opportunities for young people and entrepreneurs alike.
Walk through one of these markets on a busy trading day and the atmosphere is electric: traders negotiating prices, officials verifying weights, and young brokers holding small parcels of gold awaiting registration.
It is the visible expression of a newly organised value chain linking miners, traders, regulators and local communities.
Billions flowing into the formal economy
The financial results of the reforms have been striking.
Before the markets were introduced, much of the mineral trade occurred outside official channels, leaving the government with limited insight into the sector’s true scale.
In the 2018–2019 financial year, mineral sales through the new market system totalled about 8 billion Tanzanian shillings — revenue that had previously been largely unaccounted for.
Within just a few years, the figures surged dramatically.
By the 2021–2022 fiscal year, revenues generated through mineral markets exceeded 264 billion Tanzanian shillings.
By the 2023–2024 fiscal year, the value of minerals traded through these markets had surpassed 2 trillion shillings annually, reflecting a powerful upward trajectory.
These revenues feed back into the national economy through taxes and royalties that finance infrastructure, social services and development projects — reinforcing mining’s role as a cornerstone of Tanzania’s economic growth.
A blueprint for Africa
Tanzania’s mineral market system is increasingly drawing attention from across the continent.
Delegations from Zambia, Malawi, Burundi, Uganda, Kenya and the Democratic Republic of the Congo have visited Tanzania to study the model.
Officials from Burkina Faso have also travelled to the country to learn how regulated markets can transform artisanal mining.
For many African economies rich in mineral resources yet challenged by informal extraction and trade, Tanzania’s approach offers a compelling blueprint: Formalise the sector while empowering small-scale miners rather than excluding them.
Local economies on the rise
The ripple effects are also being felt at the local level.
Recognising the economic opportunities created by mineral markets, municipal and district governments are investing in new infrastructure to support these hubs.
Around the markets, small businesses are thriving — food vendors, transport operators, equipment suppliers and financial service providers, all benefiting from the steady flow of miners and traders.
For young people in mining regions, the markets provide a gateway into the broader mineral value chain — from brokerage and mineral registration to logistics and technical services.
In many towns, these trading centres have effectively transformed local economies into vibrant micro-hubs built around regulated mineral commerce.
A transparent future for investors
Perhaps the most important achievement of Tanzania’s mineral markets is the shift in perception they have created.
What was once viewed as a largely informal gold trade has evolved into a structured and increasingly transparent industry overseen by government institutions.
Every gram weighed, every transaction recorded and every tax collected contributes to a clearer picture of the sector’s true value.
For investors, this growing transparency signals a maturing mining ecosystem — one where policy reform, improved governance and market infrastructure are aligning to unlock long-term opportunities.
As Tanzania continues pursuing its ambitious Vision 2030 development agenda, the country’s mineral markets are emerging as more than trading platforms.
They are becoming gateways to investment, entrepreneurship and inclusive economic growth, linking Tanzania’s vast mineral wealth to a new generation of opportunity.
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Adam Ihucha is a prominent Tanzanian journalist and author recognized for his extensive coverage of tourism, wildlife conservation, and economic issues in East Africa. Based in Arusha, he serves as a senior correspondent for The Tranquility News and is a long-time contributor to eTurboNews (eTN), where he provides global insights into Tanzania's travel industry.
Throughout his career, Ihucha has written for several major publications, including The Guardian (Tanzania) and The EastAfrican. His work frequently highlights the intersection of environmental conservation and economic development, covering critical topics such as anti-poaching initiatives, national park management, and regional trade within the East African Community. His journalism is noted for its advocacy for sustainable tourism and its role in documenting the achievements of Tanzania's tourism sector.
Email contact: ihucha@tranquilitynews.com
