Tanzania is well established mining jurisdiction, being the third largest gold producer in Africa. Gold production is predominantly from the prolific Lake Victoria Gold Fields Region in the north of the country.
Tanzania, created by the union of Tanganyika and Zanzibar in 1997, is located in East Africa and borders Mozambique, Malawi and Zambia. The country is regarded as one of the most politically stable in Africa. It has a population of over 40 million with 80% living in rural areas. The legislative capital is the city of Dodoma, while the coastal city of Dar es Salaam serves as the main commercial capital and seaport.
The economy reflects the ongoing political stability of the country and has progressed steadily since 1995 with agriculture, tourism and mining all performing well. Mining is the fastest growing sector in Tanzania in terms of contribution to GDP and exports. This growth was assisted by the World Bank and the introduction of investor-friendly mining laws that were introduced in 1998. The Mining Act of 1998, subsequently amended in 2010, guarantees investor’s security of tenure, provides transparency in issuance and administration of mineral rights.
The first of the large mining projects in Tanzania began producing gold approximately ten years ago. One of the key drivers behind the expansion of the Tanzanian gold mining sector is the prospective Greenstone Belts and in particular, the Lake Victoria Goldfields. This has led to a number of Australian and international corporations being attracted to the region including African Barrick, AngloGold Ashanti Limited and Resolute Mining Limited, all of whom have a significant presence in the country.
Tanzania offers a well-balanced and competitive package of fiscal incentives in comparison with other African countries.
Tanzania is a signatory of several multilateral and bilateral agreements on protection and promotion of foreign investment. Among other international agreements and membership, Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA) and International Centre for Settlement of Investment Disputes (ICSID).