STRICT measures being taken by the government and appreciation of gold prices at the world market has boosted revenue earned by the country from minerals by 37.7 percent.
Bank of Tanzania has said in its latest Consolidated Zonal Economic report released last week that revenue increased to 1.28trn/- during the second quarter of the year compared to earnings during a corresponding quarter in 2019 when only 932.54bn/- was raised.
The report stated that in general all zones with mining activities recorded value increases, except Northern Zone that performed poorly.
“The improvement was registered particularly in gemstones, salt and gold; with the growth in the value of gold being influenced by a rise in global prices following an increase in demand for gold as a safe haven asset for investors in the wake of outbreak of COVID-19” the report said.
The Lake Zone accounted for the largest share with 83.3 percent of the total value of minerals extracted worth 1.07trn/-, followed by the Southern Highlands Zone with 10 percent worth 128bn/-. The Northern Zone registered meagre value of 18.4bn/- or an equivalent of 1.4 percent of the total value.
The BoT CZE report further added that mining has been flourishing ever since the government endorsed a new controlling system of trading the precious metals by opening mineral centers in every region of the country.
However, the government has already enforced regulations that defend small scale miners from being swindled by thieving mineral dealers.
Meanwhile, the report stated that the value of selected manufactured commodities grew by 6.7 percent to 2.34trn/- compared with 2.20trn/- during the period. “The increase was registered in the South Eastern and Central Zones, partly associated with availability of adequate raw materials and expansion of market outreach,” the report stated.
“The Dar es Salaam Zone accounted for the largest share of the total value of manufactured goods at 52.2 percent, while the Central Zone had the least share of 3.6 percent,” the BoT report added.
The South Eastern Zone registered 463.2bn/- while the Central Zone registered only 84bn/- in value of manufactured goods during the period.
Dar es Salaam led the pack with a 1.22trn/- worth of merchandise while Northern Zone came second with 293bn/-.