【Tanzania】Global Gem Markets Shift as Tanzania Reasserts Ownership of Tanzanite Trade

Editor’s Note

This article examines Tanzania’s strategic move to assert greater national control over its lucrative tanzanite gemstone trade. The initiative, part of a broader reform agenda, aims to secure more value from this finite resource for the country.

A National Asset Under New Protection

The government of Tanzania has launched a bold campaign to reclaim full control over the global Tanzanite trade, a strategic economic and political move aimed at protecting and maximizing the value of one of its most treasured resources. Under the leadership of President Samia Suluhu Hassan, this initiative forms part of a broader agenda to end decades of underperformance and exploitation in the country’s mining sector.
Tanzanite, a rare, striking violet-blue gemstone, was discovered in 1967 and is found nowhere else on Earth but in the Mirerani Hills of northern Tanzania, near Mount Kilimanjaro. Despite its uniqueness and rising global demand, much of the wealth generated from Tanzanite has historically bypassed Tanzania, instead benefiting foreign middlemen, smugglers, and traders in countries like India and the United States.

Why Tanzanite Matters

Often touted as being 1,000 times rarer than diamonds, Tanzanite’s global significance is tied to both its beauty and scarcity. The gemstone is believed to have a limited lifespan, with experts estimating that the current deposits could be exhausted within the next 20 to 30 years. Despite this rarity, Tanzanian miners, local dealers, and the government have long received just a fraction of its final retail value, which can exceed thousands of dollars per carat.

Reforms and the Fight Against Smuggling

To combat these economic leaks, the Tanzanian government has introduced sweeping reforms designed to ensure that Tanzanite’s value is retained within the country. One of the most critical changes was the construction of a 24.5-kilometer security wall around the entire Mirerani mining area in 2018. The wall, equipped with surveillance and entry points, has significantly reduced illegal mining and gemstone smuggling, once rampant in the area.
In addition to physical security, the government has banned the export of raw Tanzanite weighing more than one gram. This law requires all Tanzanite to be cut, polished, and certified in Tanzania before being exported, ensuring that value addition and the jobs and revenue it creates stays within national borders.

Empowering Local Industry

The reforms go beyond enforcement. Tanzania has invested in building the local gemstone processing industry, training artisans, and creating infrastructure to support in-country polishing, grading, and certification. Institutions like the Tanzania Gemological Centre (TGC) in Arusha have been instrumental in training Tanzanian gemologists, cutters, and jewelry makers.
Moreover, the establishment of regional mineral trading hubs across the country has allowed small-scale miners and traders to sell their gemstones through legal and transparent channels, further reducing the influence of black-market networks.

A New Global Marketing Strategy

In recent years, Tanzania has also developed a proactive marketing strategy to reposition Tanzanite as not just a luxury item, but a national symbol. The government is actively engaging with international jewelers, trade expos, and certification bodies to ensure Tanzanite is branded and sold globally as a uniquely Tanzanian product.
The country is also working to reclaim its branding power from foreign interests who have dominated Tanzanite retail under Western-owned labels. This marketing pivot includes promoting Tanzanian-made jewelry and showcasing homegrown artisans at global trade events.

Economic Gains and Community Impact

Early signs of success are evident. Since the new policies were enforced, smuggling has decreased by more than 80%, according to official reports. Tanzanian miners are earning higher profits from fairer prices, and job opportunities in gem processing and jewelry design are increasing. Revenue generated from Tanzanite is also being reinvested into community development, including education, healthcare, and infrastructure in mining regions.

International Pushback and Challenges

Tanzania’s firm stance has not gone unnoticed. Some foreign markets, particularly in India’s gemstone-cutting industry, have expressed concern about the impact of restricted raw Tanzanite supply and increased sourcing costs. Critics argue that overregulation could shrink demand or drive buyers elsewhere.
Nonetheless, Tanzanian authorities remain undeterred. Minister of Minerals Dr. Doto Biteko has stated that protecting Tanzanite is a matter of sovereignty.

“We are not saying the world cannot access Tanzanite. We are saying that Tanzanite must benefit Tanzanians first,”

he emphasized in a national address.

A Model for Africa?

Tanzania’s approach is gaining attention beyond its borders. As African countries rethink their roles in global supply chains, Tanzania’s Tanzanite reforms could become a blueprint for responsible, sovereign resource management. The shift from raw export to in-country beneficiation marks a turning point in how African nations leverage their natural wealth.
The Tanzanite model suggests a future in which African resources are no longer exported cheaply and returned as high-priced luxury goods, but are instead transformed locally, creating employment and national pride.

A Sparkling Future

As Tanzania continues to reassert ownership over its mineral wealth, the Tanzanite trade stands as both a challenge and an opportunity. If well-managed, it could become a cornerstone of economic empowerment, helping to fund national development and position Tanzania as a serious player in the global luxury gemstone market.
In reclaiming Tanzanite, Tanzania is not just securing a rare gem; it is reclaiming its voice, value, and future.

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⏰ Published on: May 27, 2025