Experiences from mining and consequences for the petroleum sector
Many resource-rich African countries have recently drafted local content policies for their petroleum sector. Using Tanzania as an example, this paper argues that previous experiences in the extractive industries are a central factor for public sentiments and debates on resource nationalism and local content in the petroleum sector. The paper focuses on the shifting local content policies in the mining sector over the last two decades and presents some of the initiatives that mining companies have taken to increase the local content. The 2010 Mining Act has weak and unbinding requirements on local content. National statistics show that there has been no increase in the local purchase of goods and services and that the percentage of expats in the sector has been relatively stable over the years. As in other African countries, local content is subject to elite capture and patronage, but support to cooperatives is one way of involving local communities in a positive manner. Discontent with the contribution of mining to the national economy entailed a heated debate on local content policies for the petroleum sector, but the legislation that were put in place in 2015 ended up being relatively ‘soft’, due to the fear of losing investors.
This paper discusses whether and to what extent resource-rich developing countries should introduce local content policies, i.e. requirements to include local inputs in petroleum extraction activities of multinational corporations. We argue that local content needs to be seen as a public expenditure question, since local content requirements increase multinational costs, and hence reduce the taxes […]
This paper shows that in Tanzania, economic growth contributes to job creation and employment opportunities, however, it does very little to curb income inequality. Using official data from various local sources compiled by the National Bureau of Statistics…
This paper identifies some major drivers of per capita public health expenditure growth in Tanzania using nationally representative annual data between 1995 and 2014. It used a Bayesian model based on Markov Chain Monte Carlo (MCMC) simulation. The empirical…
Poverty reduction has been a difficult milestone for Tanzania to achieve despite recording remarkable economic growth over the past decade. This is because the attained growth is not inclusive, in that sectors contributing to this growth employ fewer people. Given the fact that agriculture continues to employ the majority of people in Tanzania, efforts to […]