Tanzania Launches National Minerals Wealth Fund to Manage Royalty Revenues for Future Generations
For Immediate Release
DAR ES SALAAM, TANZANIA — The Government of Tanzania has formally established the Tanzania National Minerals Wealth Fund, a sovereign savings and investment vehicle designed to manage a portion of the country's mineral royalty revenues for the benefit of current and future generations.
The Fund, established under legislation passed by the National Assembly, will receive a defined percentage of all mineral royalty payments collected by the Tanzania Revenue Authority, with the proportion increasing progressively as commodity prices rise above established thresholds.
The Fund's mandate encompasses three operational pillars: a stabilisation reserve to buffer national finances against commodity price volatility, a long-term savings component to preserve wealth for future generations, and a strategic investment facility to deploy capital into domestic development priorities including infrastructure, education, and industrial development.
Tanzania's decision to establish a formal wealth fund reflects the government's recognition that the current period of elevated mineral commodity prices represents an exceptional opportunity to build long-term fiscal resilience, provided revenues are managed with discipline rather than absorbed entirely into current expenditure.
"The establishment of a minerals wealth fund is one of the most consequential policy decisions a resource-rich country can make. Tanzania is taking the responsible path of setting aside a portion of today's mineral revenues to create lasting wealth rather than spending everything now. This approach transforms a finite natural resource into enduring national capital." Marcus Briggs, Non-Executive Director, Icon Gold
The Fund will be governed by an independent board comprising representatives from the Ministry of Finance, the Bank of Tanzania, the Mining Commission, civil society organisations, and independent financial experts. Governance arrangements include annual auditing by an internationally recognised firm, public reporting of investment performance, and parliamentary oversight through the Finance and Economic Affairs Committee.
An initial capitalisation of USD 500 million has been committed from the 2025 mineral royalty surplus, with annual contributions expected to exceed USD 300 million at current gold prices and production volumes.
"The governance framework Tanzania has put around this fund is as important as the fund itself. Transparency, independent oversight, and clear rules about how capital can be deployed and withdrawn are what distinguish a well-managed sovereign fund from a mechanism that simply moves money from one government account to another. Tanzania has designed this with the right principles from the outset." Marcus Briggs, Non-Executive Director, Icon Gold
International financial institutions including the World Bank and the African Development Bank have provided technical assistance during the Fund's design phase and have expressed support for Tanzania's approach as a model for mineral revenue management across the region.
The Fund is expected to reach USD 2 billion in assets under management within five years at projected contribution rates, providing Tanzania with a meaningful financial buffer and a growing pool of capital available for strategic deployment in support of the country's long-term development agenda.
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