This brief examines the factors that have influenced local content in the Tanzanian mining sector, and some of the challenges and successes of local content initiatives in mining. Local content has gradually gained momentum over the last ten years, both among government bodies, companies, and civil society organizations. We argue that there has been a focus on quantity rather than quality in the reporting of local content, that there is a need for stronger regulation of local suppliers to make them adhere to ethical standards, but also that investment in training and local cooperatives can be beneficial for both corporations and host communities.
In order to develop an Oil and Gas Professionals Data Base (OGPDB) to act as a tool for employment opportunities search, the Ministry of Energy and Minerals invites applications from Oil and Gas qualified Tanzanians.
BG Group, being acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil and Ophir Energy plan to build the onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC). They aim to start it up in the early 2020s. But their final investment decision has in part been held up by delays in finalising issues related to the site.
Tanzania said on Friday it had finalised a land acquisition for the site of a planned liquefied natural gas (LNG) plant and was now working to compensate and resettle villagers to move forward on a long-delayed project.
Huge reservoirs of natural gas have been discovered offshore the southern coast of Tanzania. The country might become a large producer of gas, and a potential exporter of liquefied natural gas (LNG) during the next decades. With this comes the promise of significant petro-revenues and prospects of natural gas-driven structural transformation, bringing with it improved economic and social conditions for the people of Tanzania. However, experiences from other countries suggest that it is challenging to turn natural resource wealth into improved welfare for the majority of citizens. In this brief, we focus on challenges related to the management of government revenues, particularly tax. We argue that continued efforts to expand the non-resource tax base is essential for successful management of the resource wealth.
On 11-12th of November, Dr. Abel Kinyondo (REPOA) and Mr. Fred Matola (National Bureau of Statistic) represented the Tanzania as a future petro-state research programme at a regional dialogue meeting in Entebbe, Uganda. The dialogue sought to explore the potential of achieving inclusive development in the East African region in the face of recent oil and gas discoveries. Discussions focused on the governance of oil and gas sector and examined political, legal and regulatory frameworks as well as civil society initiatives in respect to management and utilization of revenue for the benefits of all citizens. The workshop brought together participants from Tanzania, Uganda, Kenya, Botswana, Ghana, Nigeria, and South Sudan. The event was sponsored by FES, Uganda.
This paper by Ivar Kolstad and Abel Kinyondo suggests that an optimal local content policy in the context of flawed institutions is a more minimal one than those typically pursued by developing countries with recently discovered petroleum reserves. We argue that local content requirements need to be seen as a public expenditure question: such requirements increase multinationals’ costs and hence reduce the taxes that can be extracted from these companies. There are thus opportunity costs in imposing local content requirements, since the forgone taxes could be used in other ways to improve development prospects. Such requirements can also exacerbate key problems of patronage and rent-seeking.
The Friedrich-Ebert-Stiftung (FES) Tanzania is launching the “Tanzania Oil and Gas Almanac & other Tools for Transparency” today,29th of September in Dar es Salaam. The event is hosted in collaboration with OpenOil and the Natural Resource Governance Institute (NRGI).
The event introduces a number of transparency initiatives. Specifically, FES Tanzania, launching its “Tanzania Oil and Gas Almanac”, a Wikipedia and living database for publicly available information around the Tanzanian Oil and Gas sector.
Berlin-based OpenOil has a presentation on the prototype of the “Tanzania Pilot”, a visual demonstration of how much insight is possible by combining many different layers of information on extractive industries in one data package. On the other hand, the NRGI gives a comprehensive analysis of Open Data in extractive industries through looking at a range of NGRI initiatives and projects aimed at promoting accountability and transparency in the field.
For more information visit FES Tanzania website
Four researchers from CMI/NHH and REPOA, Odd-Helge Fjeldstad, Jan Isaksen, Donald Mmari and Ingrid Hoem Sjursen, participated at the 1st Annual Congress of African Tax Research Network (ATRN) made a presentation of the preliminary findings from the project “Managing the resource curse: An experimental study on the effects of expectations about petro-revenue in Tanzania”.
The Project is a joint work with The Choice Lab researchers Alexander Cappelen and Bertil Tungodden.
The conference took place in Cape Town, South Africa, on 2nd and 4th September, 2015 where Fjeldstad and Isaksen chaired the first two parallel sessions of the conference.
Click here to see the conference programme.
In this article Tanzanian law firm Breakthrough Attorneys offers an extensive analysis of Tanzania’s new Oil And Gas legal framework, with the recently entacted Petroleum Act 2015.
Undoubtedly, the future economy of Tanzania depends on extractive industry as means of economic expansion being both a usable resource as well as a commodity for international trade and finance.
Together, oil and natural gas may bring Tanzania unprecedented mobility, help generate electricity, and are used to produce everything from agriculture fertilizers to synthetic clothing to product packaging and countless other items.
For a full article click here
Dr Donald Mmari had an opportunity to comment on BBC on how Tanzania could soon be entering into a new Fairtrade deal to sell gold to the UK — the first of its kind in Africa.
The BBC reporter Tulanana Bohela said that Tanzania’s hope is that Fairtrade standards will help break the cycle of poverty in the country’s richest region and Dr. Mmari had to give his views on the impact of the fairtrade on the local gold brokers.
“Could it force them out of business? Is Fairtrade really a win-win deal? how sustainable is it considering the dominance of large mining companies”? Asked the reporter and below is the link to the programme clip;
More on fairtrade;