Tanzania

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2009
Latest Data From 2012
Website EITI Tanzania

Overview

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.

Extractive industries contribution

  • 35 %
    to exports
  • 5 %
    to GDP
  • 12 %
    to government revenue
  • NA
    to employment

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. 

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. Read Tanzania's beneficial ownership roadmap below for more information.

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
Gas55.08trillion cubic feet
Gold1,600qmetric tons
Diamonds
Tanzanite

Revenue collection

The extractive industries contribute approximately 12% of total government revenue in Tanzania. Extractive sector revenues increased by 28% from USD 602 million in 2013 to USD 754 million in 2014. This was mainly caused by increased gold production and corporate tax payments. Most of Tanzania’s revenue from extractives are taxes, and one corporate tax payment made by Ophir represented 30% of total sector revenue in 2014.

Initializing chart.

Reconciled revenues by company (Top 5 companies)

Revenue allocation

There is limited information on distribution of payments in EITI Report.  Local authorities collect a levy from oil, gas and mining companies operating in their region (USD 200,000 for license holders or 0.3% of total turnover for non-license holders).

Social and economic contribution

Gas and electricity combined accounted for 1.8% of the GDP in 2014, while mining contributed 3,3% of GDP. Gold was the largest contributer to the country's exports, amounting to 34% of total exports (Tanzania EITI 2013/14 Report).

Mining companies paid almost USD 15,5 million in corporate social responsibility payments in 2014, which was about 2% of total government revenue from the extractive sector.

Innovations

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

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 to include the forestry sector in the scope of EITI Reports, as the sector contributes significantly to the national economy.

Read more in Tanzania EITI's 2015 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 Chair of the Working Group is Judge Mark Bomani. A dedicated EITI law was passed in August 2015 which 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 Standard commenced on 1 January 2017. The country is compliant under the 2011 Rules.