By Business Insider Reporter, Lindi
The Lindi Region is undergoing a dramatic economic shift driven by the expansion of its mining sector, which officials now say is unlocking billions in potential revenue, creating thousands of jobs, and spurring investment in supporting industries across the region.
From local employment and infrastructure upgrades to growth in small businesses and regional tax revenues, the economic footprint of mining is steadily reshaping Lindi’s development outlook.
Regional authorities and sector players project that if current momentum continues, mining could generate up to $12 billion in long-term value – with direct benefits cascading across the regional economy.
“Mining is proving to be a game-changer for Lindi,” said Regional Commissioner Zainab Telack during the Lindi Mining and Investment Opportunities Exhibition on June 11, 2025. “Our mineral wealth is no longer a dormant resource; it is becoming an engine for jobs, income generation, and regional economic diversification.”
In 2022/2023, mining activities contributed TSh4.33 billion (approx. $1.7 million) to the regional government’s coffers, a 90.42 percent achievement of the TSh4.8 billion target.
With more projects in the pipeline, authorities anticipate exponential growth in fiscal contributions through royalties, fees, and local taxes in the coming years.
The employment impact is already visible. According to Zanzibar’s Minister of Water, Energy and Minerals, Shaib Kaduara, more than 95 percent of mining jobs in Lindi are held by Tanzanians, including skilled and semi-skilled workers.
This influx of income has boosted consumption, stimulated micro-enterprises, and increased demand for housing, transportation, and local goods.
“Lindi’s people are no longer bystanders in resource extraction – they are part of the value chain,” said Kaduara. He added that large-scale operations like the Lindi Jumbo graphite mine, which will directly employ over 350 people, will further elevate household incomes and support local livelihoods.
Lindi’s mineral wealth – particularly an estimated 17 million tonnes of graphite – positions the region at the center of global demand for energy transition minerals used in batteries and electric vehicles. This strategic importance is attracting both foreign and local investors, prompting upgrades in local infrastructure, roads, and power distribution networks to support mining logistics.
Small and medium enterprises (SMEs) in the region are also experiencing a knock-on effect. The surge in mining-related activity has spurred the rise of local service providers, including catering firms, equipment suppliers, welders, transporters, and construction companies. “We are seeing a growing ecosystem of small businesses feeding off the mining value chain,” noted Telack.
The State Mining Corporation (STAMICO) is enhancing this link by supporting small-scale miners and salt farmers with technical training, drilling equipment, and access to markets. “Our goal is to build local capacity, not just extract resources,” said Dr. Venance Mwase, CEO of STAMICO. “We’re investing in people, in skills, and in value addition that stays in Lindi.”
Dr. Mwase also noted that salt farming – a key economic activity in coastal Lindi – is being integrated with mining development, allowing producers to benefit from improved processing techniques and stable demand channels.
This is expected to bolster income for thousands of households traditionally reliant on subsistence farming and informal trade.
Development economists view Lindi’s mining boom as a regional development case study.
“This is a textbook opportunity for inclusive regional growth if the wealth is reinvested locally – in infrastructure, education, health, and enterprise,” said Dr. Donath Olomi, a development economist. “What’s happening in Lindi could define how Tanzania leverages its mineral wealth going forward.” As mining continues to reshape the economic landscape, Lindi is emerging not just as a mining region – but as a growing economic hub powered by strategic resources, rising incomes, and expanding local enterprise. For a region long associated with underdevelopment, the ground beneath its feet is now a source of lasting change.
