By Valentine Oforo, Dodoma
EFFORTS by the government to ensure for increased local content in the country’s mining sector have started to fetch the targeted results, thanks to the Mining Commission.
On March this year, the Government through the Mining Commission launched a special digital system to help attract more Tanzanians to take part in the vital sector, but also, to ensure the involved mining companies are rolling out diverse social services through Social Corporate Responsibility (SCR) regulations.
As a result, it has been unveiled that currently, at least 86 percent of indigenous companies are providing services and products in mines, while the remaining 14 percent are provided by foreign companies through a special permit issued by the Mining Commission.
Giving an exclusive interview to this publication yesterday, the Executive Secretary of the Mining Commission, Engineer Yahya Samamba expressed that the number of employment of locals (Tanzanians) in the mining sector has currently reached 97 percent, while the employment of the foreign nationals stands at three percent only.
He expressed that the Commission was continuing working out a series of strategies to heighten the participation of Tanzanians in the mining sector, added: “The vision is to ensure the mining sector pays a great contribution towards the growth of the country's economy and the citizens to benefit accordingly from the available mineral resources,”
Eng. Samamba informed that the Government through the Mining Commission has so far made various improvements to the mining law and its regulations with the aim of ensuring that there is potential increase in the participation of Tanzanians in the sector, while the Government is receiving its statutory taxes along with generating more jobs.
“One of the so far improvements includes the formulation of regulations for the participation of Tanzanians in the Mining Sector (Local Content) which have brought benefits to the mining stakeholders, especially citizens living in the vicinity of mining areas” he expressed.
Explaining over the benefits obtained since the establishment and implementation of the relevant regulations, Engineer Samamba detailed through the set improved regulations, no company is allowed to import goods or services from abroad without obtaining permission from the Mining Commission, the goal being to ensure every Tanzanian benefits from the sector.
He added that in the management of the principles of the participation of Tanzanians in the mining sector, the Mining Commission through the committee for the participation of Tanzanians has continued with its primary responsibility of analyzing the plans submitted by all companies engaged in mining and exploration of minerals, and service providers in the mining sector as required by the Mining Law of 2010 as amended in 2017 and the Regulations for the Participation of Tanzanians in 2018 as well as its amendments.
He detailed, during the first quarter of the fiscal year 2023/2024, Eng Samamba informed that in the period from July to September, 2023, the Commission received a total of 234 plans for the participation of Tanzanians in the mining sector, presented for the first time by various companies for analysis and approval in accordance with the principles of participation of Tanzanians.
He added that among the 234 companies that submitted their plans for the participations of the Tanzanian in their sides, three companies own a license for large mining, five companies own/apply for a license for medium mining, seven companies own/apply for an exploration license and 219 companies are the service providers (Contractors & Subcontractors) for mining license holders.
“We will continue standing at fore to execute a number of initiatives for ensuring for increased participation of the Tanzanians in the sector, these include providing education to companies that own mining licenses, organizing various forums and workshops regarding the implementation of the policy for the participation of Tanzanians in the sector as well as staging numerous exhibitions related to mining technology,” he emphasized.
According to relevant reports, employment for Tanzanians in large mines has increased from 6,668 in 2018 to 15,341 in 2022 with Tanzanians getting various training to build the capacity to work professionally in the sector, the works that were previously handled by foreigners.
Moreover, there has been an impressive increase in domestic purchases, whereby in 2022, a total of 2.22 billion US dollars, equal to 97.4 percent of all purchases by mining companies were made using Tanzanian companies, compared to the 238.71 million US dollars (equal to 46 percent) of all purchases made in 2018.
And, the general contributions of the mining sector to the county’s Gross Domestic Product (GDP) have increased to 9.1 percent from 7.2 between 2021 and 2022 as the sector registered an impressive growth, from 9.6 percent to at least 10.9 percent during the period.
During the 2022/23 fiscal year revenues collections accrued from the mining sector has reached at 678bn/-, whereby the mining market points managed to raise at least 154.4bn/- during the period.
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