Tanzania has revised its mining sector regulations to lower the minimum local ownership threshold for foreign mining operations, marking a shift from previous requirements.
The 2018 Mining Sector Regulations initially mandated that Tanzanian companies hold at least 51% equity in mining ventures, with multinational firms required to partner with local entities. This framework aimed to increase government revenue and boost local participation in the mineral sector.
A 2019 amendment reduced the required local ownership stake to 20%, easing restrictions on foreign investment. The revised Mining (Local Content) (Amendments) Regulations also simplified banking requirements, allowing entities with at least 20% Tanzanian ownership to maintain bank accounts in local institutions.
Industry stakeholders welcomed the changes, noting that many local firms lacked the capital and technical capacity to fully engage in mining activities. Mbwaike Mahyenga, a miner in Mwanza, highlighted that equipment and operational costs posed significant challenges for domestic companies.
The reforms also address concerns about profit repatriation and tax compliance. By requiring banking institutions to have at least 20% Tanzanian shareholders, the regulations aim to strengthen local financial sector involvement while maintaining some control over foreign capital flows.
International banks such as Barclays, Standard Chartered, and Stanbic Bank remain subject to the rules, though the updated framework allows more flexibility for non-wholly Tanzanian-owned banks to serve the sector.
