Tanzania

EITI Status Meaningful progress
Joined EITI in 2009
Latest Data From 2016
Latest Validation 2019
Website EITI Tanzania
Last updated 1 July 2020

Overview

Tanzania is predominantly a mining country with both small and large-scale operations. The mining sector is diversified with gold, diamonds and tanzanite mining. The government joined the EITI as part of wider reform efforts to make the sector more competitive and maximise the benefits from mining.

The past few years have seen a big increase in exploration for gas and oil along the coast. The country currently produces natural gas from proven reserves from Mnazi Bay and Songo Songo Island. With significant offshore gas discoveries, the country is planning to become an exporter of liquefied natural gas (LNG) in the future. However, future revenues are severely threatened the lower prices for natural gas. Furthermore, there are ongoing public debates  on whether the state receives a ‘fair share’ from its extractive deals, and how revenues are being used to the benefit of citizens. Tanzania's latest EITI report covers the years 2016/2017 and was published in December 2019.

Extractive industries contribution

  • 35 %
    to exports
  • 5 %
    to GDP
  • 1 %
    to government revenue

Beneficial ownership disclosure

Progress on implementing beneficial ownership disclosure

In 2015 Tanzania enacted an EITI law that requires all extractive companies in the country to disclose their beneficial owners. In preparing for beneficial ownership transparency, TEITI has also produced an inception report, reviewing the legal and institutional framework for beneficial ownership transparency. Tanzania also published an evaluation report from their participation in the beneficial ownership pilot. In 2019, the government published Tanzania Extractive Industries Transparency Act Regulations which provide further legislative basis for beneficial ownership disclosure in the extractive industries. Tanzania's 2016/2017 EITI report collected some information on beneficial ownership although there is still low compliance by companies.

We are committed to the EITI process because it is aligned with our policy of promoting transparency and accountability in the management and use of our natural resources. It is critical for promoting sustainable development and poverty eradication in the country.
Jakaya Mrisho Kikwete, former President of Tanzania

Production

Tanzania is Africa’s fourth largest gold producer and accounts for 1.3% of total global production. Tanzania is also the only country in the world which produces tanzanite. Gas production is concentrated in the south in the Songo Songo and Mnazi bay fields.

Natural resources

Tanzania is a mineral-rich country with resources such as gold, diamonds, tanzanite and coal. Tanzanian soil also contains iron ore, base metals, uranium and gemstones. Recent oil and gas exploration activities have proved that there are offshore gas reserves in the south of the country. So far, no crude oil discovery has been made.

CommodityReservesUnitSignificance
Gas57trillion cubic feet
Gold1,600qmetric tons
Diamonds
Tanzanite

Revenue collection

The extractive industries contribute approximately 1% of total government revenue in Tanzania. Extractive sector revenues has declined in the last years, with USD 228 million having been collected in fiscal year 2015/16, down from USD 754 million in 2014/15. Mineral royalty was the largest revenue stream in fiscal year 2015/2016 (36% of government revenues from extractives), while corporation tax was the second largest contributer (29%).

Initializing chart.

Reconciled revenues by company (Top 5 companies)

Revenue allocation

In Tanzania, transfers of extractive revenues to sub-national entities are not made separately from other revenues. Revenues from all sources are put in a consolidated account from which the government provides allocations to spending entities including subnational levels of government. Legislation in Tanzania, however, provides for direct payments to subnational governments through what is termed a service levy.

Social and economic contribution

The extractive industry contribution to total GDP was 4.8% in 2016 and 2017. It is estimated that 1.4% of GDP is accounted for by the extractive informal sector. Overall, the extractive sector contributes about 1.4% of the formal employment in Tanzania. In 2016, the extractive sector 35,900 people (Tanzania EITI 2016/2017 Report).

 

 

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • Tanzania has piloted beneficial ownership disclosure, and the latest EITI Report (2016/2017) includes some information on beneficial ownership.

  • Tanzania EITI Reports disclose local tax payments and social contributions.

Implementation

Tanzania EITI (TEITI) aims to maximise the monetary, social, and environmental value of mining and more recently gas, by deepening extractives transparency and improving revenue collection. TEITI is encouraging the government and companies operating in the extractive sector to establish an open contract and license registry. The MSG is also considering including the artisanal and small scale mining sector in the scope of EITI Reports, as the sector contributes significantly to the national economy.

Read more in Tanzania EITI's 2017 Annual Progress Report »

Governance

On 17 November 2009, the Deputy Minister of Energy and Minerals officially inaugurated Tanzania’s EITI Multi-Stakeholder Working Group. The Working Group consists of five members each from government, companies, and civil society. The TEITI Chairperson is Mr. Ludovich Utouh. A dedicated EITI law was passed in August 2015 and its Regulations were passed in 2019. This legislation institutionalises the role of the Multi-Stakeholder Working Group and legally enforces timely and accurate reporting by companies and government agencies covered by EITI Reports.

Timeline

 

Validation

Tanzania's Validation against the 2016 Standard commenced on 1 January 2017. Tanzania was found to have achieved meaningful progress in implementing the EITI Standard in October 2017.

Tanzania’s second Validation commenced on 1 January 2020 following an extension request approved by the Board in October 2019. The EITI International Secretariat assessed the progress made in addressing the 18 corrective actions established by the EITI Board following Tanzania’s first Validation in 2017. On 16 June 2020 the Board decided that Tanzania has made meaningful progress with considerable improvements in implementing the 2016 EITI Standard.

Tanzania's progress by requirement

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