THE government has formed a nine-member team to investigate the scale of mineral trade in the country in a move aimed at streamlining the sector and increasing foreign currency.

The team will study activities of all mineral dealers and establish a number of issues, among them if they remit back money in the country in foreign or local currencies.

Through the relevant ministry, the team has alrerady conducted extensive audit that has helped reduce the number of dealers from 700 in 2022 to 150 in 2023, eliminating those who do not qualify to provide the service.

While the sector’s contribution to the economy increases steadily, the government has noticed several loopholes used by dealers which deny the government a lot of money in forex.

Speaking during a meeting with the dealers here yesterday, Minister for Minerals Anthony Mavunde said most mineral dealers in the country sell abroad in foreign currencies but deposit shillings in the local banks.

He said mineral laws and regulations demand that dealers or sellers of minerals outside the country should deposit foreign currencies in the local banks.

The minister expressed concerns that while the government has opened doors for any capable persons in the country to participate in mineral trading, some of the dealers misuse the freedom.

“Unlike some countries, Tanzania has allowed anyone willing and capable to participate in mining business and investments but it is unfortunate that some people are not willing to adhere to the set requirements” he said.

He called on the dealers to support the government’s efforts in streamlining the sector by sticking to the law by selling outside the country and depositing back in foreign currencies and later exchange into local currency for local dealings.

According to the minister, mining sector has been on the high growth contributing 9.1 percent to the GDP up from 6.8 percent in the last financial year. He said between July 2022 and July 2023, gold export reached 2.24trn/-.

Mavunde noted that the sector contributes to 56 percent of the total exports, adding: “The government depends a lot on exports that earn the country foreign currency which is needed for buying goods and services outside the country.”

He explained that in 2022, transactions done by local dealers reached over $ 905.6 million whereby diamond dealers contributed $18.1 million as rare minerals reached $ 29.1million.

He added that the government plans to award the dealers who contributed to the noted achievements during the mining forum scheduled for October, 2025.

Deputy Chairperson of the Tanzania Mineral Dealers Association (TAMIDA) Leopald Kimaro said there are several issues that need to be addressed by the government in supporting operations of the dealers.

He thanked the government for the efforts in strengthening the sector, saying: “No ministry or sector has recorded such steady growth within such a short time.”