Mining suppliers sound alarm over violations of local content

The blueprint envisions “a competitive, assertive, responsible and inclusive private sector that leads socio-economic development”, supported by citizen empowerment programmes and attractive policies for mobilising FDI.

In line with that vision, the government has continued to open up the mining sector to foreign investors, albeit under clear conditions designed to safeguard national interests.

Central among these is compliance with local content legislation, which requires that Tanzanian companies and individuals benefit meaningfully from investment in the country’s mineral resources.

Mining remains one of Tanzania’s most strategic sectors, contributing approximately 10 per cent to the Gross Domestic Product (GDP). Revenue from the industry supports public expenditure in key areas such as education, healthcare and infrastructure, while the sector also generates substantial direct and indirect employment.

Addressing journalists in Dar es Salaam this week, TAMISA chairman Peter Kumalilwa said the association had received reports indicating that some foreign mining firms were sidestepping local content guidelines.

Although he did not name specific companies, he signalled that the association would not hesitate to take action.

“We continue to receive reports that show that some companies are violating local content guidelines. They are awarding tenders to companies not owned by Tanzanians. But when it comes to awarding tenders to Tanzanian companies they are imposing harsh procurement conditions. Such actions are against the law; they are unacceptable,” he said.

Mr Kumalilwa argued that while the government had created a conducive investment climate, it was imperative that Tanzanians remain the primary beneficiaries of the country’s natural wealth.

“This situation cannot be allowed to continue because it disheartens local service providers and suppliers in the mining sector. It dampens their morale in doing business and under such a situation it is difficult to implement fully the local content policy,” he said.

Under existing regulations, services that can be provided locally within mining operations must be reserved for Tanzanian firms and individuals. The policy is intended to promote domestic enterprise, protect jobs — particularly for young people in mining communities — and build technical capacity among local businesses.

He added that effective enforcement of local content requirements would expand economic opportunities, increase foreign exchange earnings and accelerate GDP growth.

“Protecting these interests will promote social development, including the construction of roads, electricity, water and communication infrastructure, which also benefits communities surrounding mining areas,” Mr Kumalilwa said.

He stressed that TAMISA was committed to enforcing compliance without fear or favour, including reporting violators to the relevant authorities.

The chairman also commended the government under President Samia Suluhu Hassan for reforms aimed at strengthening the mining sector and enhancing local participation.

He praised the Ministry of Minerals, led by Anthony Mavunde, and the Mining Commission for what he described as stronger oversight and a demonstrated commitment to empowering Tanzanians. “We are seeing strong oversight of the Mining Commission. Tanzanians are now witnessing major reforms that prioritise local participation and opportunity,” he said.

Mr Kumalilwa noted that, for the first time, the government had officially announced a list of 20 services and products reserved exclusively for Tanzanians in the mining value chain — a move he described as historic in safeguarding domestic interests.

He urged local companies and institutions to seize emerging opportunities in the sector, including prospects linked to industrial development in areas such as Buzwagi in Shinyanga Region, where mining activities have spurred demand for goods and services.