Guidance

Growth Gateway: Investing in critical minerals processing in Africa, case for bilateral partnership with Tanzania (summary)

Published 10 October 2025

Global demand for critical minerals is rising rapidly, driving the need for more diversified and resilient supply chains. Tanzania holds significant reserves of important minerals such as graphite, nickel, and rare earth elements – resources that are vital for the UK’s industrial and green energy ambitions.

Despite this potential, only 20% of Tanzania’s capacity has been explored. Currently, 7 active projects have an estimated annual export potential of £2 billion to £3 billion, with 6 more in pre-feasibility stages.

The Tanzanian government, in collaboration with the private sector, is actively working to develop the mining sector. In 2023, the country attracted around £900 million in foreign direct investment and set a target to increase mineral earnings by 33%. However, to fully unlock the sector’s potential, challenges related to regulation, infrastructure, and environmental, social, and governance (ESG) standards must be addressed.

A UK-Tanzania partnership in critical minerals presents a compelling opportunity. Commercially, it could secure long-term supplies of essential minerals for the UK. Tanzania’s future graphite output alone is projected to be 6 times greater than the UK’s anticipated demand. The partnership could also attract UK investment into mining and supporting sectors like green energy, while opening up export opportunities for UK businesses providing goods and services to Tanzania’s mining industry.

Beyond commercial benefits, such a partnership could strengthen bilateral relations, positioning the UK as a trusted ally in Tanzania’s mining development. It also offers a chance to contribute to Tanzania’s economic growth through job creation, local value addition, and improved ESG practices. With the right collaboration, both nations stand to gain economically and strategically from this emerging opportunity.