Tanzanite Processing in Tanzania: Challenges and Opportunities

Wilfred E. N. Mbowe, Nicas Yabu and Moto Lugobi

Applied Economics and Finance, 2016, vol. 3, issue 3, 236-257

Abstract: 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 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 contribution of processing activities to employment and revenue in the country is still low. The factors hindering processing of tanzanite locally are diverse and they include unpredictable supply of rough tanzanite, which is constrained by the use of poor mining technology, high competition for the rough tanzanite and small size of recovered stones. Other challenges are related to accessibility to financial resources, tanzanite processing technology and skills, as well as unreliable markets for cut and polished tanzanite. The study recommends that the government could consider the need to establish a tanzanite cutting and polishing export zone at Mirelani area, where tanzanite is mined. This would serve as marketing centre for rough tanzanite. The efforts to establish a special economic zone in the area could be hastened to enable ease access to market information, and promote processing activities locally facilitated by predictable supply of rough tanzanite. In addition, the government might provide tax incentives by reducing multiplicity of taxes payable to central and local governments as well as waive import duties on start-up equipment for both mining and processing activities.

Keywords: Gemstones; Gemstone processing; Tanzanite; Mineral Policies; Mining in Tanzania (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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