Tanzania soars in gemstone production
Gemstones production in Tanzania has recorded an increase nearly nine-fold in the last four years. Minister for Minerals, Mr Doto Biteko attributed the trend to a vastly improved mining environment.
Gemstones production increased to 23,564.5 tonnes last year, from the 2,554.9 tonnes recorded in 2016. This is according to the latest data by the National Bureau of Statistics (NBS). Mr Doto Biteko observed that the favourable environment which is now attracting more small-scale miners increased the production. Additionally, he also attributed the trend to the removal of value-added tax and withholding tax on some minerals.
“Strict control of mineral smuggling has also helped a lot as small-scale miners now see the value of regulated mining, and the government’s plan is to strengthen this so that more people can engage in mining,” he said.
Unfriendly tax regime
Mr Biteko explained production was low in previous years because miners were harassed, an unfriendly tax regime and rampant smuggling of minerals – all of which discouraged investments in the sector. The government expects to increase mineral production in the coming years due to a number of mechanisms that have been put in place by the government in improving the sector. He mentioned some of them as improving the Tanzania Gemological Centre (TGC). A plan has also been put in place to bolster the Gemological Centre in training students on how to add value to gemstones, including polishing them.
“By doing so, it will help increase employment – and also give our gemstones a higher value in the market,” said the minister.
