Tanzania is predominantly a mining country with both small and large-scale operations dominated by nine major mines: seven for gold and one each for diamonds and tanzanite. The government joined the EITI as part of a 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. Production of natural gas from large proven reserves has started to ease Tanzania’s chronic power shortage. However, future revenues are severely threatened the lower prices for natural gas and gold.  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.

According to Petroleum Act 2015 and the Mining Act 2010, license holders and contractors in the extractive sector are liable to pay taxes including corporate tax (30%), capital gain tax (30%), withholding tax (10%) and other taxes. Profits resulting from transfer or disposal of rights are also subject to taxes, which are collected by the Tanzania Revenue Authority. In June 2017, the Tanzanian government passed laws with significant implications for extractive sector governance in the country (including the Natural Wealth and Resources Contracts Bill, the Natural Wealth and Resources Bill and the Written Laws Act). One of the most significant implications of the bills is that they empower the national assembly to allow the government to re-negotiate any agreement considered inequitable and containing “unconscionable terms”. Other provisions entitle the government to stakes of at least 16 % in mining companies operating in the country, with the option to acquire up to 50%.

The Tanzania Extractive Industries Transparency and Accountability Act 2015 demands that all new concessions, contracts and licenses are made available to the public.

License

The Ministry of Energy and Minerals grants exploration and development licenses for the oil, gas and mining sectors. The Mineral and Petroleum Acts give the Minister discretionary power over the licensing process. Mining licenses are granted on a first come-first-served basis.

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. 

Tanzania EITI plans to organize a series of activities to review current legal and institutional framework for beneficial ownership and build the capacity of relevant stakeholders for the implementation of beneficial ownership. In February 2016, the Tanzania EITI Committee also commissioned a study for disclosing the beneficial ownership of sixty-eight extractive companies that had participated in the reporting of the 2012/13 and 2013/14 Tanzania EITI Reports.