Tanzania is abundantly endowed with mineral resources. Much has been said and written about what needs to be done to realise the full potential of these resources. While this debate continues, one category remains largely overlooked — Rare Earth Elements (REs). Rare earths are a group of 17 metallic elements essential for the manufacture of many modern technologies. They have become indispensable to today’s world, being used in the production of electric vehicles, wind turbines, smartphones, and advanced defence systems.
With its vast and high-quality mineral deposits, Tanzania is well positioned to become a significant player in this strategic sector. However, realising this potential requires deliberate policy action, investment, and institutional preparedness. Currently, China leads the global supply of REs and has used this dominance to its strategic advantage. In 2010, it temporarily halted exports to Japan during a diplomatic dispute, causing global prices to soar. Earlier this year, when the United States imposed a 135% tariff on Chinese goods, China responded by restricting RE exports — leading to a swift policy retreat by the US. Tanzania’s greatest comparative advantage lies in the Ngualla Rare Earth Project in the Songwe Region. Considered one of the largest and highest-grade undeveloped deposits of neodymium and praseodymium in the world, Ngualla could position Tanzania among the top global suppliers once production begins.
The deposit is estimated at 18.5 million metric tonnes of rare earths, with potential revenues of USD 16.2 billion over the mine’s 24-year lifespan. To unlock this potential, Tanzania should prioritise fast-tracking project implementation through transparent licensing, reliable infrastructure and investor-friendly regulations. Four key strategies could support this vision:
1. Move beyond raw exports. Establish a rare earth processing facility capable of handling Tanzanian concentrates and feedstock from neighbouring countries, positioning Tanzania as a regional processing hub.
2. Develop human capital and technology partnerships. Rare earth extraction and separation demand specialised chemical and metallurgical expertise. Tanzania can collaborate with countries such as China, Japan, and Australia — which have advanced RE technologies — to build local capacity through training, scholarships, and joint research.
3. Ensure policy stability and investor confidence. Global investors need assurance that contracts will be honoured and that regulatory frameworks remain predictable and transparent.
4. Strengthen regional cooperation. By collaborating with other African nations — including Malawi, South Africa, and Angola — Tanzania could help establish an African Rare Earths Corridor to coordinate exploration data, logistics, and investment promotion.
In conclusion, Tanzania’s journey towards becoming a major global supplier of rare earths depends on a balanced strategy: accelerating Ngualla’s development, promoting local refining, building technical expertise, maintaining policy consistency, and advancing regional cooperation. With these measures in place, Tanzania can transform its rare earth wealth into a cornerstone of industrialisation and a vital pillar of the global clean-energy economy.
