Fiscal rules—permanent quantitative constraints on government finances—are an important tool to help mitigate the macroeconomic challenges associated with managing natural resource revenues. This paper sheds light on large gaps in compliance and oversight of fiscal rules, and provides policy recommendations on how fiscal rules can be further strengthened.
The weaker price outlook has plunged potential investments in Tanzania’s promising offshore gas sector into uncertainty, and reduced the likelihood that gas will have a major impact on Tanzanians’ well-being. This revised outlook also impacts important policy decisions the government must make about the management of public finances.
The Tanzanian government and a consortium of companies are negotiating a host government agreement that will govern a game-changing liquefied natural gas (LNG) plant and be a significant part of the regulatory framework governing the entire offshore gas sector.
After a decade of private investment in the mining sector, the Tanzanian government reacted to persistently low revenue collection by investing resources in auditing capacity. It created the Tanzania Mineral Audit Agency, an autonomous agency, under the Ministry of Energy and Minerals in 2009. This case study analyzes the role, structure and composition of the agency, and discusses the outcomes in terms of revenue collection and government effectiveness.
Four years after the Extractive Industries Transparency Initiative (EITI) began encouraging contract disclosure through its standard, this report assesses the extent to which governments of resource-rich countries have taken up the recommendation.
In July 2015, Tanzania passed three pieces of legislation which lay the foundations for strong governance of the oil and gas sector. The passing of these acts is a positive step, but there is still much to be done.
The transfer price is the price of a transaction between two entities that are part of the same group of companies. For example, a South Africa-based company might sell mining equipment and machinery to its Ghana-based subsidiary. The price agreed is the “transfer price.”