STRAIGHT TALK : Many resources, but still donor dependent nation

What you need to know:

  • These resources are scattered in forests, in lakes, in the ocean and on land. God has provided this country with natural gas, iron, minerals and huge fauna and flora species that it should have been heaven on earth.

There is no doubt that Tanzania has been endowed with immense resources. So, abundant that it can easily be stated that it can stand as one of the richest countries in the world.

These resources are scattered in forests, in lakes, in the ocean and on land. God has provided this country with natural gas, iron, minerals and huge fauna and flora species that it should have been heaven on earth.

To many of us, this country should have been a donor country if all those resources were properly harvested and strategically marketed. Unfortunately, this is not the case and the citizenry has hardly enjoyed benefits accrued from the resources.

On the contrary, Tanzania has been a huge recipient of donor handouts and sometimes under conditions that are no good to the political status of the country. This I believe is not acceptable and it should be stopped in due time. The country was shocked this week, when President John Magufuli revealed a very disturbing approach to allow final processing of gold smelting to be done out of the country and in effect fatally to the country. However, this was not new. The bad smell of this investment venture has been known to some Tanzanians, but they either kept quite or just looked at the other side. Tanzania was being eaten right, left and centre.

Many committees to investigate such trends have been formed with many pages of reports being provided, but not any time that emphatic steps have been taken, so much that it has encouraged others to do the same knowing they will only be shamed by being named, but nothing happens to their people.

Some believe that those involved economic sabotage through mineral dealings are not punished because they are close to the epic centre of power and hence they are protected.

President Magufuli’s action is supported by many, but not to that extent. Questions are still on air, but there are no satisfactory answers. Asking the minister of Mining and Energy, Prof Sospeter Muhongo, to step down is just a political campaign to try to cleanse the government, which has long been informed of the trend. He is a sacrificial lamb.

Actually, asking him to step down, while this has been happening for years, may mean to absolve all other ministers and key executives, who have overseen the ministry. But also this decision will not be of great benefit if the government will not implement what has been recommended to end the trend and respect its contractual obligations with foreign investors.

The euphoria should not end with a negative note by being taken to international arbitration bodies for violating contractual obligations as provided for in contracts because the government wilfully and freely entered with those companies probably with the right to process mineral concentrates outside the country.

I believe the government is prepared to face any legal challenge that will emanate from this action, which seems to be popular with some people, taking into account that there are some cases that the government has found itself on the wrong side due to lack of due diligence.