Gold mining and trading in Chunya, Tanzania have a long and rich history, dating back to the early days of human civilization..
A Secure Global Channel.
Mineral Rich Chunya
The district of Chunya in southern Tanzania is renowned for its gold mining industry, with significant deposits of the precious metal located throughout the region. The Chunya market is an important hub for the buying and selling of gold, with numerous dealers and brokers operating within the district.
The local government has invested in infrastructure development and electrification projects in recent years to support the growth of the mining industry and improve the living conditions of local residents.
Stability in Governance in Tanzania
Tanzania has a long history of political stability, with peaceful transitions of power and a strong commitment to democracy. The country's government has taken steps to improve the business climate and attract foreign investment, including through the establishment of special economic zones and the reduction of bureaucratic red tape.
Despite concerns raised by some about media censorship and human rights abuses, Tanzania remains a politically stable country with a growing economy and a strong potential for investment opportunities.
The Dealership System
The dealership system in Chunya is an important aspect of the gold mining industry, providing a secure and transparent channel for the buying and selling of gold. The Chunya market is home to numerous licensed and vetted dealers and brokers, who operate within a regulatory framework established by the local government and central authorities.
The market also features a government office with industry-standard assaying equipment and 24-hour armed police presence to ensure the security of transactions. The dealership system is an integral part of the mining industry in Chunya, facilitating the flow of gold from miners to buyers across the globe.
Economic Growth in the Region
From the inception of mineral markets in the Mbeya region, significant achievements have been realised through the establishment of the Chunya mineral market, where monthly gold collections have increased from 25 to 250-300 kilograms since its establishment in 2018. Deputy Minister of Mining, Dr. Steven Kiruswa, made this disclosure during the opening ceremony of the inaugural Mineral Technology Exhibition held at the Sinjirin grounds in the mineral-rich Chunya region. Additionally, he indicated that government revenues in the region have grown from 5 billion Tanzanian shillings to 30 billion, while mining licenses have increased from 150 to 1500 and processing licenses from 4 to 250, with small-scale mining business licenses (brokers) increasing from 0 to 300 and large-scale licenses from 0 to 60 presently.
The mining sector has consistently made a notable contribution to the national economy, with the mining ministry's share of the gross domestic product (GDP) increasing from 4.4% to 7.2% in 2017, and a further rise to 9.7% in the third quarter of 2022. The mining sector's objective is to contribute 10% of the country's GDP by 2025. The government has established 42 mineral markets and 93 mineral purchasing centres throughout the country to bolster the mining business, and the existence of these markets has decreased illegal mineral trade, as the government has improved the business environment for the mining industry.
Dr. Kiruswa commended the Governor of Mbeya, Juma Zuberi Homera, for conceiving and instituting the mineral exhibition, which aligns with the vision of the President of the United Republic of Tanzania, Dr. Samia Suhulu Hassan, of opening up the country. Homera, in turn, praised the Ministry of Mining for its continued efforts to resolve various challenges faced in the region, resulting in an improvement in mineral sector revenue collection.
Mbeya is among the regions endowed with various minerals, with two mineral-rich regions, Chunya and Mbeya, in the area. Each district has distinct mineral prospects, making the region one of Tanzania's most blessed with unique mineral wealth, including gold, silver, copper, and more.