The late President Magufuli of Tanzania will be remembered as the leader who was ready to “bulldoze” bureaucracy and status quo to promptly create socio-economic changes. With speed and resoluteness, he specifically changed the legal, regulatory, and fiscal frameworks governing the foreign dominated mining sector, all within two years of his presidency.
After South Africa, Tanzania is deemed the number two mining giant in Africa in key minerals like gold, diamonds, and nickel which are mostly concentrated in the north-western part of Tanzania, where global mining conglomerates are active. The mining zone also happens to be the late president’s home area, perhaps advising his familiarity with sector issues and urgency to implement corrections.
Despite the large size of the mining sector in Tanzania, accrual of economic benefits to the country was deemed not significant enough. By 2017 Magufuli had delivered revised mining laws and regulations increasing gold royalties from 4 percent to 6 percent. Further, he introduced 16 percent government ownership of mining companies’ stock without compensation, with the opportunity to purchase a further 34 percent ownership. Exportation of concentrates and unprocessed minerals was banned requiring that value addition processing be done in Tanzania.
Content created and supplied by: Smart_E (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More