Mining contribution to GDP increases
DODOMA: THE mining sector’s contribution to the country’s Gross Domestic Product (GDP) has slightly increased from 7.2 per cent in 2021/2022 to 9.1 per cent in the last financial year.
Briefing journalists here on Friday on the Mining Commission’s implementation of the 2022/2023 plans, Commission‘s Acting Executive Secretary, Engineer Ramadhani Lwamo said that said the mining sector also recorded an increase in its growth from 9.6 per cent 2021/2022 to 10.9 per cent in 2022/2023.
“We believe that the sector’s contribution to the GDP will reach 10 per cent or more come 2025 following various measures taken to strengthen the sector,” he said.
He detailed that the mineral markets and trading centres established by the commission in collaboration with the Regional Administration and Local Government Authority (RALGA) contributed 157.4 bn/- equivalent to 23.2 per cent of the total revenue collected by the commission in 2022/2023 financial year.
According to the commission, to-date there are 42 mineral markets and 94 small trading hubs.
Lwamo said that the revenue collected through the markets and trading centres was from royalties and mining inspection fees.
He noted that in 2022/2023 financial year the commission also increased its revenue collections from 624.6 bn/- collected in 2021/2022 to 678.04 bn/-.
“The amount collected in the last financial year is equivalent to 82.5 per cent of the annual target of collecting 822.02 bn/-. The money was collected from annual license fees, audit fees, geological fees, royalties, fines, penalties, forfeitures as well as payments of laboratory services,” he said.
He said that in strengthening the mining sector investment, the commission also managed to issue a total of 9,642 licenses out of 9,174 licenses planned to be issued in the respective year of which 6,511 licenses equivalent to 70.97 percent were issued to small scale miners.
He added that the commission also received 656 plans for the involvement of the mining sector (LCPs) from the owners and applicants of mining licenses as well as service providers and analysed them where 652 plans met the criteria and were approved.
Commenting on plans to be implemented in the current financial year, Engineer Lwamo said that the commission aims at ensuring the contribution of the mining sector to the GDP increases to 10 per cent or more come 2025 by continuing to strengthen management and control in the areas of construction and industrial minerals.
He added that the plans include adding assistant inspectors to the construction minerals (AMSs), working equipment (PoS) and engaging various government authorities that manage and use the resources.
The commission will also continue to control illegal trade of minerals, especially deflation of minerals, by promoting the use of mineral markets and trading hubs in the country, strengthening checkpoints especially exit points in border areas, ports and airports, and improving and managing the mining licensing system.
He said the commission would also continue to strengthen inspections of mining activities in the mines as well as opening and strengthening new Resident Mines Offices (RMOs), laboratories and Mines Resident Officers ( MROs)’offices in various production areas.
“We will also continue to strengthen existing mineral markets across the country’s borders to attract business of our minerals and improve the investment environment for large and medium-sized miners as well as to strengthen research activities related to the identification of new sources of mineral resources income,” he said.
