Tanzania is blessed with various types of minerals ranging from Gold, gemstones, Tanzanite, Ruby, Diamond, Tanzanite, copper Iron just to mention a few.
Tanzania mining industry has contributed 8.5% to its GDP with US$ 960mn in 2017 compared to only 3.09% and a value of US$ 880m in 2016. This rapid markert growth indicates investment is required so can come in and give it a go.
The demand for this mineral is huge and they can be sold to the different places across the globe. Forexample the large quantities of gold produced in Tanzania is exported to South Africa and India India, Switzerland and Australia,
Business Opportunities For Mineral Export In Tanzania
Now, we have seen the market of mineral export in Tanzania, let’s discuss the opportunities in mineral export
1.Metallic minerals. Include gold, iron ore, nickel, copper, cobalt, and silver
2.Gemstone Include Diamond, Tanzanite, ruby, sapphire, married, spinel, alexandrite, tourmaline, zircon, aquamarine, tsavorite, spessartite, rhodolite, demantoid, garnet etc.
3.Industry minerals. Include limestones, soda ash, gypsum, sal;t and phosphates
4.Fuel Minerals that are coals and uranium
5.Construction minerals include aggregates, gravel, sand and dimension stones
Set Up Your Mineral Export Business In Tanzania- Step by step guide
To start your mineral export business you should first register a limited liability company with business registration and license agency (BRELA). This is an agency empowered by the government to register all business in Tanzania. Afterwards, you will register with tax authority.
2.Get Your Export Permit
Once you have registered you a limited company with BRELA, the next step is to a get a permit for mineral export from the ministry of minerals. The export permit vary on the type of mineral you want to export
Here is the government fee for export dealer license based on different kind of minerals you intend to export.
- Gemstone USD 2000
- Metallic mineral license usd 500′
- Industrial mineral license usd 500
- Broker license $ Tzsh 200,000
3.Give your business professional feel.
Once you have got an export permit based on your demand, then you should set a reputable website for your business. Your register internet domain name and get professional emails that go like this firstname.lastname@example.org.
Some customers do not want to deal with business that looks untidy or those use emails associated with “Gmail” or “ yahoo” because they looks are unprofessional.But set up an international standard website give the customers confidence that you are the right person to do business with.
Also Read.How To Become A Contractor In Tanzania
4.Export Your Products.
Once you have sign the sales and purchasing agreement with your buyer the next step is to export your materials to buyers
Risk Associated With Mineral Export Business
Every good business its setback must be the potential risks in minerals export business are:
- Meeting with buyers who have insufficient fund for the business.
- Lack of experiences in the market lead to overquote or underprice and in most cases, dealers can buy the wrong specification of the minerals.
- A large number of untrustworthy exporter this make difficult for buyers to trust you.
- Wastage of time making too long conversation with the customers who do not. have money to buy or they just researching the business.
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