For any domestic or international entity planning to provide goods and services to Tanzania’s dynamic mining sector, a thorough and current understanding of the nation’s local content laws is indispensable. As of August 2025, the legal framework is designed to maximize the economic benefits derived from Tanzania’s mineral wealth by ensuring substantive participation from its citizens and local companies. Navigating this landscape requires familiarity with two core legal instruments: The Mining Act R.E. 2019 and the Mining (Local Content) Regulations, which have been subject to several important amendments.
This guide provides a detailed breakdown of the definitions, requirements, and compliance pathways for service providers, incorporating the latest updates to the legal regime.
The Dual Legal Framework
Compliance for service providers is governed by a dual system that establishes distinct but related requirements. The Mining Act sets out the primary obligation, while the Local Content Regulations provide detailed implementation rules and definitions. Both must be understood to ensure full compliance. Mining companies are required to give preference to local entities, but the definition of what constitutes a “local” entity differs between the two sources.
Compliance Under the Mining Act R.E. 2019
The Mining Act mandates that mining companies give priority to a “local company” when sourcing goods and services. The Act explicitly defines a local company as a company incorporated under the Companies Act R.E. 2002 that meets one of the following two criteria:
- It is one hundred percent (100%) owned by a Tanzanian citizen or citizens.
- It is a company operating as a joint venture partnership where Tanzanian citizens hold participating shares of not less than fifty-one percent (51%).
For instances where goods are not available in Tanzania, the Act provides an alternative path. The goods must be sourced from a local company that has formed a joint venture with a foreign company, in which the foreign partner’s stake is limited to twenty-five percent (25%).
Compliance Under the Mining (Local Content) Regulations
The Mining (Local Content) Regulations, 2018, and their subsequent amendments in 2019 and 2022, require mining companies to prioritize an “indigenous Tanzanian company”.
The definition of an indigenous Tanzanian company is multifaceted. Following amendments, it is currently defined as a company incorporated under the Companies Act R.E. 2002 that has:
- At least twenty percent (20%) of its equity owned by a citizen or citizens of Tanzania.
- Tanzanian citizens holding at least eighty percent (80%) of executive and senior management positions.
- One hundred percent (100%) of non-managerial and other positions held by Tanzanian citizens.
For non-indigenous companies looking to enter the market, the Regulations stipulate a clear joint venture pathway. Such a company must incorporate a joint venture with an indigenous Tanzanian company and ensure the indigenous partner is afforded an equity participation of at least twenty percent (20%). The 2022 amendments reinforced this, clarifying that providing goods and services must be done through a joint venture, not merely in association with a local company.
Expanded Obligations Beyond Shareholding
Compliance extends far beyond meeting shareholding thresholds. The regulations, as updated, impose several other critical obligations on all licensees, contractors, and subcontractors to foster deeper local integration. Service providers should be aware of these as they form part of the overall compliance assessment by the Mining Commission.
Key obligations include:
- Submission of Local Content Plans: Companies must prepare and submit detailed annual and long-term local content plans to the Mining Commission for approval. These plans must outline strategies for employment, training, and procurement.
- Mandatory Use of Local Services: The regulations require that all legal and financial services be provided by Tanzanian law firms and financial institutions. Offshore financial services require special approval from the Mining Commission.
- Training and Succession Plans: Local content plans must include detailed programs for training Tanzanians and clear succession plans for any positions held by expatriates.
- Performance Reporting: The 2022 amendments introduced stringent reporting requirements. Companies must now submit quarterly performance reports within 14 days of the quarter’s end and an annual report within 60 days of the year’s beginning. Failure to submit these reports on time can result in significant fines.
Summary of Lawful Compliance Pathways for Service Providers
Synthesizing the Act and the Regulations, a company can lawfully supply goods and render services to the Tanzanian mining sector if it qualifies under one of these three primary structures:
- It is a “local company” as defined by the Mining Act, with either 100% or 51% Tanzanian ownership.
- It is an “indigenous Tanzanian company” as defined by the Regulations, meeting the 20% equity and specific management composition requirements.
- It is a joint venture formed between a non-indigenous company and a local partner, where the Tanzanian partner holds at least 20% equity as per the Regulations.
Given the evolution of these laws, particularly through the 2019 and 2022 amendments, it is crucial for all service providers in the mining sector to conduct thorough due diligence and ensure their corporate structure and operational plans are fully aligned with the current legal requirements.