Tanzanite Processing in Tanzania: Challenges and Opportunities

This study sought to evaluate factors that hinder processing of rough tanzanite in Tanzania with greater emphasis on availability of raw materials, financial resources, skills, and market. In addition, the study examined the contribution of tanzanite processing activities to employment and revenue. This study used structured interviews to collect information from tanzanite miners, brokers, and dealers. Information was also collected from the Ministry of Energy and Minerals, Tanzania Audit Agency, and the State Minerals Company on the opportunities and challenges facing the industry. The findings suggest that the contribution of processing activities to employment and revenue in the country is still low. The factors hindering the processing of tanzanite locally are diverse, including unpredictable supply of rough tanzanite constrained by poor mining technology, high competition for rough tanzanite, and the small size of recovered stones. Other challenges relate to accessibility to financial resources, processing technology and skills, as well as unreliable markets for cut and polished tanzanite. The study recommends that the government consider establishing a tanzanite cutting and polishing export zone at the Mirelani area to serve as a marketing center for rough tanzanite, accelerate the efforts to establish a special economic zone, and provide tax incentives.