Despite the widespread presence of tin in Kagera Region, the economic benefits bypass Tanzania and its citizens.
Small-scale and artisanal miners (ASMs) who are the main pillar of the tin mining sector in the area are supported on the fringes by a rapidly spreading illegal market that favors illegal traders and smugglers operating without being apprehended.
Underground traders operate along the border of Mulongo between Tanzania and Rwanda, where unlicensed traders stock tin ore for greater profit on the other side of the border.
As a result: Tanzania loses significant tax revenue, while impoverished miners in Kyerwa District remain trapped in cycles of exploitation and poverty.
The Tanzanian national budget has repeatedly faced revenue shortfalls due to inadequate revenue collection. For example, in the fiscal year 2022/2023, the government approved a budget of TZS 41.84 trillion, but only TZS 41.48 trillion was collected, resulting in a shortfall of TZS 360 billion.
This amount, estimated at approximately USD 1.83 billion, is lost annually through various channels of Illicit Financial Flows (IFFs), especially smuggling of various minerals including tin, which is a resource contributing 10.1% to the national income.
In a statement issued to the media on July 28, 2024, the Minister of Minerals, Hon. Anthony Mavunde, explained that the Ministry initially aimed to collect TZS 882.121 billion from the mineral sector for the fiscal year 2023/2024, according to the 2010 Mining Act. However, actual revenue collected was TZS 753.815 billion, falling short by TZS 128.306 billion compared to the target. (Source: Policy Forum)
The Head of the Minerals Department in Kagera Region, Nobart John, stated that legitimate sales through the Kyerwa Tin Market amounted to 495,929.60 kilograms, generating TZS 22.6 billion. However, unregulated trade could be much larger, leading to illegal flow of funds that undermine national accounting and regional development.
Eight suspects were arraigned at Kyerwa District Court for economic sabotage involving 310 kilograms of tin minerals.Tin is a highly demanded metal used for manufacturing solder in electronic devices, coating containers to prevent rust, and in alloy mixtures like bronze.
In Kagera Region, tin relies heavily on small-scale and artisanal miners working in tough conditions with minimal equipment.
These miners often sell tin ore at low prices to middlemen, due to lack of processing facilities and formal markets.
Tin Mineral Buying CenterThis situation limits their benefits and deprives them of the opportunity to realize higher profits, despite the high international demand for tin.
Middlemen and illegal traders are said to use fake scales and forged permits to exploit miners, undervaluing the mineral, and avoiding taxes. This not only deprives TRA (Tanzania Revenue Authority) of essential tax revenue but also impedes community development in mining areas.
Illegal Activities Begin at the Mine Site
Small-scale miner Nuriath Kateme, working in Nyaruzumbula with over ten workers, says they still face difficulties even after many years of work.
Nuriath Kateme-Small scale Miner.“We sell tin for TZS 25,000 to 30,000 per kilogram, which is not enough even to pay workers,” Kateme said. “If we had processing equipment and access to government loans, we could increase our income and sell at better prices. We need a price of TZS 50,000 to 60,000 per kilogram to survive.”
Along the Rwanda border at Mulongo, sellers are said to pay up to TZS 80,000 per kilogram, providing strong motivation for illegal smuggling.
Feliciana Rugabandana, a resident of Mulongo Village, said that tin prices for local miners have increased since 2018, but illegal buyers offer nearly twice the local prices.
“Besides low prices, miners are deducted TZS 12,000 per kilogram, and it is unknown where that money goes. There is no transparency in this process,” Rugabandana stated.
Corruption and Smuggling Collaboration
Community leaders say illegal trade is facilitated by corruption at various levels.
Ramadhani Issa, chairperson of Nyamafurila village, said reports of illegal mineral smuggling are regularly submitted to authorities, but enforcement remains weak.
Ramadhan Issa-Chair Person of Nyamafurila“Some leaders collaborate with illegal traders,” Issa said. “Our communities face serious problems.
We have been without water for many years. Women and children walk more than ten kilometers to fetch water. Health clinics lack sufficient staff, and schools lack basic infrastructure.”
Over the past decade, confirmed investments in the area have been minimal only three classroom blocks and 12 toilets have been built leading Issa to accuse these as significant losses due to illegal financial flows.
Nyaruzumbwa Primary School which was Built in 1953Dickson Makoro, the Government Prosecutor for Kyerwa District, said Tanzanian authorities have filed two cases involving eight suspects since January 2025. The charges are based on the Anti-Corruption and Organized Crime Act, relating to smuggling and unlicensed sale of minerals.
In one case on February 11, 2025, minerals worth TZS 18 million were confiscated. Another case in August involved minerals valued at TZS 5.7 million. The estimated financial loss to the government from these two cases alone is over TZS 23 million only a small part of the total losses caused by illegal trade.
Dickson Makoro- Goverment Prosecutor at KyerwaLegal Framework and Weak Enforcement
Tanzania has strict laws regarding mineral resources, but enforcement remains challenging.
Haruna Shomari, the District Chief Prosecutor for Ngara, noted that smuggling minerals without permits known as "unothoraside" violates several laws, including Section 18(4a) of the Mineral Act (Cap 123 of 2019) and the Anti-Corruption and Organized Crime Act (Cap 200 of 2002).
Haruna Shomari-District Chief Prosecutor at Ngara“These laws prescribe severe penalties: not less than 20 years imprisonment, hefty fines, and confiscation of assets,” Shomari said.
The problem is not the laws or legal loopholes but a lack of integrity and awareness among miners and traders.
TRA acknowledged the presence of illegal trade networks in the area. Rwegoshora Rwekaza, TRA officer in Kagera, confirmed some cases of unlicensed smuggling may involve local staff.
“Operating mineral trade without permits is an economic crime. It causes significant loss of revenue,” Rwekaza stated.
Economic Challenges for the Nation
Illegal tin trade is not only a regional issue but a major concern for the national economy. By undermining formal markets and tax systems, this illicit flow of funds contributes to revenue loss and hampers infrastructure development and social services.
Before the establishment of the Kyerwa main market in 2019, thousands of kilograms of tin were
taken from miners and stolen. Official figures show that 2,371 kilograms valued at TZS 45 million and 5,894 kilograms worth TZS 112 million were stolen at different times.
By Angela Sebastian
The project received support from the Thomson Reuters Foundation as part of its global work aiming to strengthen free, fair and informed societies. Any financial assistance or support provided to the journalist has no editorial influence. The content of this article belongs solely to the author and is not endorsed by or associated with the Thomson Reuters Foundation, Thomson Reuters, Reuters, nor any other affiliates.
