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.

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 Minerals grants exploration and development licenses for the oil, gas and mining sectors. The Petroleum Act give the Minister 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.

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.