Key Points:
- Introduction
- Stricter Joint Venture Requirements
- Submission of the joint venture agreement is required
- Deemed approval of the revised local content plan resuscitated
- Supplies exclusively by indigenous Tanzanian companies to be listed
- Sole source procurement threshold introduced
Introduction
On 12th September 2025, the Government of Tanzania published the Mining (Local Content) (Amendment) Regulations, 2025 under Government Notice No. 563 of 2025. These amendments revise and strengthen the existing Mining (Local Content) Regulations, 2018, with the aim of deepening indigenous participation, promoting local enterprise development, and improving regulatory compliance in the mining sector.
Stricter Joint Venture Requirements
A key change is the tightening of joint venture (JV) requirements for non-indigenous companies. A foreign or non-indigenous company that intends to supply goods or services to contractors, subcontractors, licensees, or the State Mining Corporation must form a joint venture with an Indigenous Tanzanian Company (ITC) that is 100 % owned by Tanzanian citizens and operates in the same line of business.
The Indigenous Tanzanian Company (ITC) must hold at least 20 % equity in the joint venture (JV), unless the goods or services are on a list reserved exclusively for Indigenous Tanzanian Companies (ITCs). This replaces the earlier regime where local companies could be partially foreign-owned, thereby boosting local ownership and participation.
Mandatory Submission and Approval of Joint Venture Agreements
The amended regulations now require that joint venture agreements be submitted to the Mining Commission for approval before operations commence. These agreements must clearly outline the Indigenous Tanzanian Companies’ (ITCs) role, equity share, and technology/skills transfer strategies. This reinforces oversight and protects local partners.
Local Content Plan Reforms
The structure and approval process for local content plans have been revised. Local content plans must now include Banking Services Sub-Plans and Procurement Sub-Plans, expanding the scope beyond traditional employment and services plans. If the Mining Commission fails to notify a decision on a revised plan within 50 working days, the plan is deemed approved, enhancing regulatory certainty and reducing delays.
Reserved Goods and Services for Indigenous Companies
A new provision (Regulation 13A) mandates that the Mining Commission publish a list of goods and services that may be supplied only by 100% Tanzanian-owned companies. The list is published in the Government Gazette, on the Commission’s website, and in nationwide media. This creates exclusive opportunities for local firms in specified sectors.
Sole Source Contract Threshold
The rules for reporting sole-sourced contracts have been updated. Contractors and related entities must notify the Mining Commission in writing only if a proposed contract or purchase order is sole-sourced and exceeds the Tanzanian Shilling equivalent of USD 10,000. This reduces the compliance burden by focusing oversight on economically significant transactions.
Enhanced Reporting and Pre-Tender Requirements
The amendments also adjust reporting and disclosure requirements to include:
- Quarterly forecasts, which must include detailed information on contracts or purchase orders projected for the year or quarter.
- Prior to issuing an Expression of Interest (EOI) for procurement, entities must provide key tender details to include scope of work, evaluation criteria, and submission days, with a minimum 7-day submission period.
Conclusion
The 2025 amendments are designed to strengthen regulatory oversight, increase local ownership and benefits, and promote technology transfer and capacity building among Tanzanian companies. By tightening joint venture standards, broadening local content plan requirements, and reserving specific goods and services for indigenous suppliers, the Government aims to ensure that the nation’s vast mineral wealth delivers tangible economic growth and employment for Tanzanians.
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