Posted on :Thursday , 27th July 2017
Tanzanians should prepare to reap more benefits from the mining sector now that the government plans to amend the Mining Act, 2010 in a bid to accommodate regulations that will enforce local content.
The move by the government will see more locals benefitting from the inflow of Foreign Direct Investments (FDIs) in terms of skills development and building competitive supply chains in the sector.
Launching stakeholders' roundtable discussion on local content development in the the sectors of agriculture and mining hosted by the Science Technology Innovation and Policy Research Organisation (Stipro), the National Economic Empowerment Council (Neec) acting director of local content, Ms Esther Mmbaga, said the situational study in the mining and gas sectors conducted last year revealed that the law lacked strong local content provisions.
"The study discovered that there were no local content regulations in place and a specific institution for monitoring implementation of local content in the sector. Although local content issues are not directly stipulated in the Agricultural Policy, some local content interventions are being implemented in most agricultural investments in engaging and empowering local communities," she said.
She said 55 coordinators have been appointed among government Ministries, Departments and Agencies (MDAs) to ensure policies, legal frameworks, strategies, plans and contracts take on board issues of local content and monitor implementation before providing figure on the number of Tanzanians participating and benefiting from FDI inflows.
Stipro executive director Bitrina Diyamet said a previous study discovered that inclusion of local content was active in the oil and gas subsector but inactive in the other sectors including agriculture and mining.
"Investors are not using local raw materials citing poor quality as a reason. But, most Tanzanians are unaware on their presence as most investors establish themselves in particular areas alone. Hopefully, the discussion will help to deliberate what should be done," she said.
Prof Honest Ngowi of Mzumbe University, who moderated the discussion, said the government, the private sector and investors should complement weaknesses identified by providing service providers with the ability to serve the companies, develop citizen's skills to increase their employability and provide financial empowerment if Tanzanians are to benefit from FDI inflows.