Tanzania opened its mining sector to investors in the late 1990s, leading to rapid growth and increasing numbers of mining projects. Yet despite this momentum, many prospective projects fail most often due to financing challenges, fluctuating global mineral demand, and mismatches between investor expectations and Tanzania’s regulatory framework. This article looks at one key issue: how mining investors can improve their chances of securing financing.

The Mining Act provides three licensing categories:Primary Mining Licenses (reserved for Tanzanians), Mining Licences (ML), and Special Mining Licences (SML). Mining Licence (ML): Capital requirement: USD100,000 – 100 million; tenure up to ten years, renewable for another ten years; issued by the Mining Commission. Special Mining Licence (SML): Capital requirement: USD100 million and above; tenure is the life of the mine or up to 25 years, renewable in 25-year periods; issued by the Mining Commission following approval by Cabinet.