Philip Mpango, Vice President of Tanzania, has underscored the critical importance of adding domestic value to the country’s abundant mineral resources, marking a pivotal moment in the nation’s economic discourse. Speaking at the 30th anniversary commemoration of the Economic and Social Research Foundation (ESRF) in Dar es Salaam, Mpango highlighted the urgent need for the country to transition away from merely exporting raw minerals towards a model that prioritises in-country processing and refinement.
The vice president’s call comes as Tanzania seeks to harness its substantial mineral wealth—particularly its strategic and rare earth elements—to stimulate broader economic growth and secure long-term prosperity. “We should not only extract and export raw minerals but also add value domestically,” Mpango stated, articulating a vision that positions mining as a central pillar of the country’s future development.
His remarks reflect a growing consensus within Tanzanian leadership that mineral extraction alone is insufficient for sustainable growth, with value addition seen as a necessary strategy to increase the profitability of mining operations and to build a resilient national economy. The nation is particularly well-positioned given its vast endowment of rare earth minerals, which are essential components in high-tech manufacturing industries such as renewable energy technologies, electric vehicles, and advanced electronics.
Mpango’s address also extended a challenge to research institutions, urging them to play a more active role in identifying strategic niches and developing economic frameworks that can further propel Tanzania’s mining sector. He emphasised that these opportunities, if properly managed, could place Tanzania on a trajectory towards upper-income country status by 2050—a vision long articulated in national policy, but one that remains contingent on significant shifts in how the country manages its natural resources.
The vice president’s remarks come at a time when Tanzania’s mineral sector is undergoing reforms aimed at attracting investment while ensuring that a greater share of the proceeds benefits the country. Mpango’s insistence on value addition echoes previous government initiatives focused on refining and processing minerals domestically to ensure that Tanzania captures more of the lucrative downstream benefits of its mineral wealth.
Tanzania has one of Africa’s most diversified mineral portfolios, with significant deposits of gold, diamonds, tanzanite, and an increasing focus on the extraction of rare earth minerals, which are crucial to global supply chains in the technology sector. However, the historical model of raw mineral exports has largely seen wealth flow out of the country, often leaving local economies with little benefit beyond the immediate gains of mining itself.
Mpango’s call for action represents a strategic pivot, aiming to align Tanzania’s mineral wealth with the broader goals of industrialisation, employment creation, and economic diversification. His remarks also underscore the need for improved governance and efficient management of mineral resources, which have the potential to drive significant socio-economic transformation if properly harnessed.
The ESRF, established in 1992 and commencing operations in 1994, has long served as an influential think tank in Tanzanian policy circles, offering research-driven insights to support the country’s economic management processes. As Tanzania seeks to recalibrate its economic trajectory, institutions like the ESRF are expected to provide crucial policy guidance, ensuring that the opportunities presented by the mining sector are fully exploited.
In conclusion, Vice President Mpango’s call for domestic value addition in Tanzania’s mining sector reflects both an acute awareness of the country’s mineral potential and a pragmatic approach to its economic future. By leveraging its natural resources more effectively through domestic processing, Tanzania may be able to break free from its historical dependency on raw material exports and position itself as a key player in the global market for value-added minerals.
