Acacia injects Sh1.6tr into economy, report indicates - The Citizen

Acacia injects Sh1.6tr into economy, report indicates

Tuesday July 3 2018

Acacia Mining truck at Buzwagi Mine

Acacia Mining truck at Buzwagi Mine PHOTO/ACACIA 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. Acacia contributed $712 million (Sh1.61 trillion) to the national economy last year, a recent independent report released by Ernst and Young (E&Y) has said.

The report, titled ‘Acacia Mining plc Total Economic and Tax Contributions in Tanzania, 2017’, concludes that during the year Acacia’s businesses purchased $434 million (Sh984 billion) of goods and services from suppliers located in Tanzania, 67 per cent of total spend on goods and services in 2017.

Of this amount, approximately $120 million (Sh271 billion) of goods and services were purchased from businesses in the direct locality of the three mines in the country’s Lake Zone.

Despite facing several challenges during the year, in 2017 Acacia contributed $712 million (Sh1.61 trillion) to the national economy, which represents around 1.5 per cent of Tanzania’s total gross domestic product (GDP), says E&Y report. This compares with a total contribution of $724 million (Sh1.64 trillion) the previous year.

The 2017 contribution is comprised of $200 million (Sh453 billion) by the businesses, an indirect contribution via suppliers of $304 million (Sh689 billion) and induced contributions of $208 million (Sh471 billion).

The report shows that the