Mining sector yet to benefit Tanzania

Dec 2010
By Elias Mhegera
A serious debate ensued at the Paradise Hotel in the Benjamin Mkapa towers when stakeholders met to discuss the contribution of the mining sector in this country.

The discussion on Tuesday this week was part of the awareness workshop on implementation of Tanzania Extractive Industries Transparency Initiative TEITI; the stakeholders in attendance were from the government, civil society, media and representatives from the mining companies.

Earlier giving the history of TEITI, retired judge Mark Bomani who is the chairperson of the Multi-Stakeholder Working Group (MSG), said that the initiative was part of the process to guarantee transparency in the mining sector.

He reminded the audience that the process was important in Tanzania due to its gold reserve potential being the third country in Africa after Ghana, and South Africa.

He said for that matter the committee was formed in December 2007, and it submitted its first report in May 2008. He said that although Tanzania is not yet a full member but due to the fact that it has minerals, oil, and natural gas, hence the initiative.
The TEITI-MSG is comprised of 16 people, five from the government, five from the mining companies and five from NGOs while the chairperson is the 16 in the team.

Presenting a paper titled “EITI: The Global Context and Reporting Process,” Abdul Omar from the World bank Country Office in Dar es Salaam said the initiative was important recommended in the World Summit for Sustainable Development, that was held in Johannesburg, South Africa, in 2002.

He said the rationale of the initiative was the fact that it is both implementable and adaptable in the Tanzanian environment. He lauded the global initiatives for transparency particularly in maintaining proper auditing in key sectors of the economies in African countries Tanzania inclusive.

He added that it was such initiatives that brought about arrangements like The New Partnership for Africa's Development (NEPAD), The African Peer Review Mechanism (APRM) Tanzania; all these were part of efforts to bring about compliance in expenditures.

Bubelwa Kaiza who is the country coordinator of the Publish What You Pay (PWYP-T), a coalition of companies, and the government, said he is yet to see the benefits of many of the companies through their Corporate Social Responsibility (CSR).

PWYP is a global network of which undertakes public campaigns and policy advocacy to achieve disclosure of information about extractive industry revenues and contracts.

Ambassador Ami Mpungwe who is the chairperson, Tanzania Chamber of Minerals and Energy (TCME), said it was not fair to underestimate the contribution of the investors in the mining sector.

He defended the investors saying they are supporting various projects in this country including education, health, and provision of employment and even buying local foodstuffs from the natives.

This view however was challenged by Deodatus Balile , who is an editor at the New Habari Corporation, who said that there are many companies in this country which constantly report on losses in order to evade taxes but reports from abroad is that they accrue supper profits.
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