Tanzania has significantly tightened its regulatory grip on the mining sector with the publication of the Mining (Local Content) (Amendment) Regulations, 2025, reinforcing mandatory participation for indigenous companies and clarifying operational requirements. These amendments, which update the original Mining (Local Content) Regulation, 2018, are designed to maximize local benefits and technology transfer.
The most stringent change affects foreign-owned companies seeking to supply goods or services to a contractor, subcontractor, licensee, or government corporation in Tanzania.
• A non-indigenous/foreign-owned company must now establish a joint venture with an existing indigenous Tanzanian company that is fully owned by Tanzanian citizens and operates within the same line of business as the goods or services to be supplied.
• The indigenous Tanzanian company is required to hold a minimum 20% equity participation in the joint venture company. This requirement is only waived if the goods and services are listed as exemptions by the Mining Commission.
• Before the commencement of mining activities, all contractors, subcontractors, licensees, or allied entities must submit the joint venture agreement to the Mining Commission for approval. This agreement must detail the role and responsibilities of the local partner, their shareholders and share participation, and the strategy for transferring technology and know-how.
The Mining Commission is now mandated to publish a list of goods and services that are to be exclusively provided by a 100% Tanzanian-owned indigenous company. To ensure wide dissemination, this list must be published in the Gazette, on the Commission’s website, and in media of nationwide circulation.
The amendments reintroduce a crucial mechanism to streamline bureaucratic processes: deemed approval. If the Mining Commission fails to notify an applicant of its approval or rejection of a revised local content plan, that plan shall be deemed to have been approved upon the expiry of 50 fifty working days from its submission.
In addition, the required local content plan must now include two new sub-plans: a banking services sub-plan and a procurement sub-plan. The term "Tanzanian Financial Institution" is also clarified to mean an institution registered in Tanzania under the Banking and Financial Institutions Act.
Finally, for sole-sourced mining activities, the threshold for notifying the Mining Commission of a proposed contract or purchase order is now set at an estimated value over the Tanzanian shillings equivalent of $10,000 ten thousand United States Dollars.
These regulations underline the government’s unwavering focus on local participation, aiming to channel greater economic benefits and skills development directly into the Tanzanian economy.
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