Tanzania’s artisanal and small-scale mining sector supports hundreds of thousands of livelihoods and contributes significantly to the country’s mineral production. Tanzanian law also reserves Primary Mining Licences (PMLs) for citizens.
Yet legal ownership does not always mean economic control.
For many artisanal and small-scale miners, limited access to capital, equipment and viable markets creates dependence on outside financiers. Some arrangements provide miners with much-needed cash, machinery or technical support in exchange for exclusive purchasing agreements or other forms of influence over production and sales.
AfriMali Insight’s August 2026 long read examines when such arrangements cross the line from investment into predatory practice.
Drawing on academic literature, policy documents, investigative reporting and documented cases from Shilalo in Mwanza, Handali in Dodoma and elsewhere, the report examines pre-financing agreements, proxy ownership, technical-support arrangements and other mechanisms through which foreign actors may obtain effective control within a sector legally reserved for Tanzanians.
The report also considers the consequences beyond individual mining agreements. Unfair purchasing arrangements can weaken miners’ bargaining power, while opaque ownership and trading structures complicate regulatory oversight and may contribute to mineral smuggling and loss of public revenue.
At the centre of the issue is an implementation challenge. Tanzania already has legislation restricting foreign ownership of PMLs and regulating foreign technical assistance. The question is whether enforcement and oversight are keeping pace with increasingly complex commercial arrangements.
The August long read explores what stronger enforcement, greater transparency, improved access to finance and stronger local mining capacity could mean for a sector intended to create opportunities for Tanzanian miners and communities.
Download the full August 2026 AfriMali Insight publication below.