Petrostate Blog for the Period of 03 June 2019 to 23 June 2019

Research

Tax Reform, Tax Compliance and State-building in Tanzania and Uganda

This article sets out to provide a comparative analysis of the effect of tax administration reform on tax performance and quasi-voluntary compliance in Tanzania and Uganda.

It aims to reveal two findings via the comparison. Empirically, it is claimed that Tanzania achieved better outcomes in terms of both tax performance and quasi-voluntary compliance in general compared to Uganda. Despite the introduction of similar tax administration reform, the tax administrations of Tanzania and Uganda have developed quite differently. Read more here

The complexities of tackling illicit financial flows in practice

The issue of illicit financial flows (IFFs) in the mineral sector of African countries has been the recent focus of African regional and national policy discussions. Research and analysis by institutions like the African Union (AU) and United Nations Economic Commission for Africa (UNECA), aimed at building an understanding of IFFs, is still ongoing. The shocking preliminary results of this analysis have led many resource-rich African countries to blame IFFs for the low tax revenue from the resource sector, citing elements of tax evasion and tax avoidance. Read more here

David versus Goliath: Tanzania’s Efforts to Stand Up to Foreign Gas Corporations

This article presents and analyses how Tanzania, a country on the global “periphery” with a natural resource sector dominated by capital from the Global North, has thus far failed to transform its mineral wealth into sustained economic development. Using Immanuel Wallerstein’s “world systems theory” as the theoretical framework. Read more here

The Global Gas Market – 2019 Edition
According to CEDIGAZ report “The Global Gas Market – 2019 Edition”, 2018 was a remarkable year for the global natural gas market. Global natural gas demand surged 4.7% to 3.850 trillion m³, driven by the US and China. The US was the standout performer, accounting for 45% of the global increase in both the consumption and supply of natural gas. Read more here

Announcement: Share your Articles!

This year we are welcoming interested parties, who would like to have their articles read by a wider audience through our Petrostate Blog to submit your articles to us. The article should reflect issues related to natural resource debate mainly Oil and Gas and Mining. Articles with focus on Tanzania’s Oil and gas sector are highly encouraged. Please adhere to making the articles brief and informative.

Send your articles by replying to this email ( blog@tanpetstate.org)

In The News

The 2019/20 Budget

 On June 13th 2019, the Ministers of Finance from the East African countries presented their budgets. The Tanzania state of the economy together with the budget speechprioritized, improvement in business environment and incentivising the local private sector as was presented bythe Minister for Finance and Planning, Hon. Dr. Philip I Mpango. Agriculture has seen a lot of incentives catering for both inputs and storage. Read more from KPMG.

Photo credit: East African

Tanzania and Zambia to build US $1.5bn oil pipeline

Tanzania and Zambia are set to construct an oil pipeline running from Tanzania’s commercial capital Dar Es Salaam to the Zambian mining city of Ndola at a cost of US $1.5bn. Tanzania Energy Minister Medard Kalemani confirmed the reports and said that the pipeline will be built by both countries to transport refined products between the neighbouring states. While presenting his Ministry’s 2019/20 budget plan…. Read morehere

Construction of Tanzania’s US $30bn LNG project to commence in 2022

The government of Tanzania has announced that construction works on the long-delayed liquefied natural gas (LNG) project shall commence in 2022. Energy Minister Medard Kalemani, said that the government plans to conclude talks with a group of foreign oil and gas companies led by Norway’s Equinor on developing the LNG terminal. Equinor, alongside Royal Dutch Shell, Exxon Mobil and Ophir Energy and Pavilion Energy, plan to build the onshore LNG plant in Lindi region.  Read more here
Exploration on gas and Oil in Zanzibar has come to an end
Chief Executive officer of UAE’s  RAK gas, Nishant Dighe has revealed that phase one exploration has come to an end. What is happening now is the interpretation of data expected to be complete in September. Read more here

Tech firms to check suppliers after mining revelations in Tanzania
Electronics companies, including Canon, Apple and Nokia, are re-evaluating their supply chains following reports they may be using gold extracted from a Tanzanian mine that has been criticised for environmental failures…Nokia and Canon said they would review their supply chains in the light of findings from the Green Blood investigation by the Guardian in collaboration with a collective of journalists led by Forbidden Stories. Read more here

OPINION: Across the global, mining sector continues to tread cautiously
Investors remained unimpressed with the mining sector in 2018 with market valuations for the world’s 40 largest mining companies falling 18 per cent, according to PwC’s recently released Mine 2019 report, and this despite the sector exhibiting steady growth. Read more here

Events

Upcoming Event

Training workshop for Policy Makers and Civil Society on how best can Tanzania harness natural resources for the realisation of its development goals

 The hands-on “learning from practice” 5-day workshop focuses on building the understanding of the institutions (policies, laws and regulations, governance frameworks and oversight institutions) that underpin the governance and development of the extractives sector in line with country’s development goals. The training aims to improve participants’ knowledge not only of policy options and tools to achieve these goals, but also the inherent challenges and opportunities. for more information click here

Date: 26-30 August 2019        Place: Dar es Salaam

The Tanzania Petrostate Programme Blog is produced by the joint programme of three institutions: REPOA and theNBS in Tanzania, and CMI in Norway with support from the Royal Norwegian Embassy in Dar es Salaam. The purpose of the blog is to draw attention to publications and reports on the gas and petroleum sectors, which may be of interest to researchers, politicians and the general public. The blog does not state opinions but merely links to relevant postings on the world wide web with a brief description and/or quotes of the content and opinions stated by authors.

The Petrostate Programme runs a website at http://www.tanpetstate.org/ where the participating institutions and researchers are presented and the aims of the programme, research results and publications are posted. The programme is also gradually building up a Resource Hub  (http://data.tanpetstate.org/where researchers and other users can download important statistics and information pertaining to the petro sector and its effect on the Tanzanian economy and society. The database covers 20 categories including production and sales of petroleum products, environmental issues, poverty, public budgets etc.

The programme and its cooperating institutions are extremely grateful for constructive comments, advice on the blog and website (link below) as well as information on important web posting that deals with the petro sector and its role in Tanzania.

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