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Opinion: How The Late President Magufuli Bulldozed Bureaucracy

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.

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Africa Magufuli South Africa Tanzania

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