Mapping Illicit Mining, Revenue Collection Risks in Tanzania’s Gold and Precious Metals Ore and Concentrate Sector: Policy Paper

Tanzania’s gold and precious metals ore sector plays a pivotal role in the country’s economy and community livelihood, yet it faces significant challenges in revenue collection. This policy paper examines the sector’s intricate landscape of revenue collection risks, employing a comprehensive methodology that includes data analysis, case studies, and risk assessment frameworks.

This analysis consolidates insights from literature, government documents, media reporting, and stakeholder interviews. It seeks to comprehensively understand illicit mining’s multifaceted nature in Tanzania and its persistent existence. Various risks, such as illicit mining, including its trends and patterns and underreporting, are identified, and regulatory loopholes are also identified and discussed.

The paper also assesses the impact of these risks on Tanzania’s economy and government revenue, highlighting the need for policy interventions. However, scholarly attention regarding the prevalence and impact of illicit mining in Tanzania’s gold and metal sectors remains limited.  Practical recommendations are proposed to address these challenges, offering actionable steps for policymakers, regulators, and industry stakeholders.

By navigating the shadows of revenue collection risks, Tanzania can unlock the full potential of its gold and precious metals ore sector, ensuring sustainable economic growth and development.