Tanzania
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 2017/2018 and was published in June 2020.
Extractive industries contribution
- 35 %to exports
- 5 %to GDP
- 1 %to government revenue
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 has provisions for all new concessions, contracts and licenses to be made available to the public.
License
The Ministry of Energy and the Ministry of Minerals grant exploration and development licenses for the oil, gas and mining sectors. The Petroleum Act gives the Minister of Energy discretionary power over the licensing process althoug agreements can only be awarded after a tendering process and after prior approval from government. Mining licenses are granted on a first come-first-served basis.
License registry
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 2017/2018 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.
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.
Commodity | Reserves | Unit | Significance |
---|---|---|---|
Gas | 57 | trillion cubic feet | |
Gold | 1,600q | metric tons | |
Diamonds | |||
Tanzanite |
The extractive industries contribute approximately 5% of GDP in Tanzania. Extractive sector revenues were about US$314m . Mineral royalty was the largest revenue stream in fiscal year 2017/2018 (46.62% of government revenues from extractives), while corporation tax was the second largest contributer (21.50%).
Initializing chart.
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.
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 (2017/2018) includes some information on beneficial ownership.
- Tanzania EITI Reports disclose local tax payments and social contributions.
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.
The TEITI National Coordinator is Maryam Mgaya.
Timeline
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 third Validation commences on 1 April 2022.
Tanzania 2017/2018 EITI Report
The EITI Report covers Tanzania#s extractive sector in the period from 1 July 2017 to 30 June 2018. It was published in June 2020.
Tanzania 2016/17 EITI Report and Supplementary Report
This EITI Report covers Tanzania's extractive sector in the period from 1 July 2016 to 30 June 2017. It was published in December 2019. The supplementary report was published in June 2020.
TEITI Annual Progress Report 2017
The report covers all activities implemented from January to December 2017. It provides progress made during the period under review, with a view of updating stakeholders and general public on progress towards implementation of the TEITI work plan. TEITI Annual progress report for 2017 is produced in compliance with requirement 7.4 of the EITI Standard. The implementation of TEITI’s Workplan during January - December 2017 helped advance the goal of deepening transparency in the administration of Tanzania’s extractive industries.
2015 - 2016 Tanzania EITI Report
This is the Eight EITI Report for Tanzania and it covers the period from 1 July 2015 to 30th June 2016.
International Secretariat


Social and economic contribution
The extractive industry contribution to total GDP was 4.80% and 5.08% in 2017 and 2018 respectively. An employment survey from 2016 indicated that the extractive sector contributes about 1.4% of the formal employment in Tanzania.