Following the liberalization of the mining sector in Tanzania in the early 1980s and the removal of currency controls in the early 1990s, the country experienced a mining boom. Small-scale and artisanal miners pegged thousands of claims and large international mining companies invested over $100 million in exploration. With assistance from IBI, Tanzanian government officials and the business community began to recognize the social and economic value of managing the growth and coexistence of both the large and small-scale mining sector. Large-scale mining is capital intensive and brings unprecedented levels of investment, infrastructure development and technology transfer. Small-scale mining is labor-intensive and has generated 550,000 jobs in Tanzania. Recognizing the complementary benefits of the two types of mining, IBI worked with officials to develop a vision and development plan for the mining sector that would generate jobs, transfer technology, and create balanced and sustainable development.

IBI helped Tanzania achieve significant tangible results under this project. The tax component allowed policymakers to simplify and rationalize tax policy while improving administration. Training programs generated new jewelry sector businesses with about 500 full-time employees, and an annual income increase of $500,000 among new and existing jewelry sector companies. Under the mining extension component, IBI helped create 206 new small businesses in the small-scale mining sector and 14 new businesses employing 50 people supplying large-scale mines with goods and services. The project trained 621 small-scale miners employing an estimated 10,000 workers in both environmentally friendly and safer mining practices and techniques.

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