GIG-OS ENGLISH: Tanzania's maneuvers to leverage the greatest impact from gold

Tanzania's maneuvers to leverage the greatest impact from gold

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Oftentimes African countries pass unnoticed regardless of the great importance of its resources. What is the role which Tanzania could play in the future worldwide? How did gold mining help for the country's economy be in good shape?

Find out the data compilated by Global InterGold!

Since the current president Jakaya Mrisho Kikwete was elected ten years back, Tanzania's eagerness for economic progress in the country saw good results at last. For the time being, the the big picture of Tanzania is that of a country which helps drive the economy successfully.

One of the country's main cash cow is the mining sector – the Southeast nation is Africa's third-largest gold producer besides its richness in precious stones such as diamonds, rubies, gemstones, sapphires and emeralds. Several reports state mining contributes an average of 3% of GDP, of which gold would be the strongest player with nearly 90% of the exports value.

Besides its natural resources, the climate, political stability and its geographic location which enables convenient export of the goods have come the wherefore of the investors' attraction. Many companies mainly from the UK, but also from India, China, USA, the Netherlands, Canada, Germany... have opened up investments in diverse fields.

Recently, the World Bank has lent $45 million to keep boosting the gold mining sector, including domestic small.-scale industries in rural areas existing prior to the arrival of multinationals. According to a report of 2013 by the International Institute for Environment and Development, this small-scale activities employs 10 times more people than large-scale ones.

According to Philippe Dongier, director of Tanzania's World Bank, these funds will help the ongoing Sustainable Management of Mineral Resources Project which aims to keep managing the sector and improve the regulatory framework.

The expectations surrounding the investment in gold mining are high given this industry already played a key role in the past. High gold prices boosted the gold mining industry which held sway over the Great Recession of 2009 in Kilimanajaro's home. Since then, the economy gained momentum in the international scene and in the gold market.

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