Tanzania passed sweeping new laws for its extractives sector in 2017 with the objective of getting a larger share of the benefits from its mineral and gas deposits. Among other significant changes, these laws increased taxation of the mining sector.
Across the world, journalists have been key to uncovering malfeasance in the natural resources sector. Media have exposed illicit activities by international oil companies like Royal Dutch Shell in Nigeria. They have shed light on Cameroon petroleum contracts that bring few benefits to locals and to national accounts.
Unlike in the resource-rich country in the film Black Panther, much of Africa’s mining sector is currently dominated by foreign direct investment; its raw minerals are often exported with limited local participation in the sector and tax revenues are eroded.
NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
NRGI is publishing case studies on South Africa, Tanzania and Zambia that describe alternative legal and institutional mechanisms that these countries have put in place to control the price of mineral exports, operational and capital expenditures, and the cost of debt.
While there are potential benefits to increased value addition in Tanzania’s minerals sector, the current policy may or may not achieve the intended impact. There are a number of factors that government officials should consider as they plan implementation of this policy.
With the Open Government Partnership Global Summit coming up 7-9 December in Paris, government reformers and civil society campaigners working on the extractives and land sectors will be pleased to see that contract transparency and environmental disclosure will likely feature in the summit outcome document.