Tanzanians are not aware of gold value addition: Research

Dar es Salaam. Results of a new study show that the majority of community members are ignorant of gold value addition, with 22 out of 36 respondents claiming to be oblivious to it.

According to the findings, community members believe extractive companies are not doing enough to enhance engagement in the gold value chain.

They also believe the government is not doing enough to guarantee that district councils engaged in extractive activities follow the local content policy.

These are part of the research findings on local content conducted by HakiRasilimali and presented yesterday during the breakfast meeting organised by Policy Forum.

Local content policies require linkages to be created through the creation of local employment opportunities, local participation in the mining sector, the procurement of local goods and services, technology and skill transfer, as well as the local beneficiation of mineral products.

The study was conducted at the Nyamongo Gold Mine located in Tarime District, owned by North Mara Gold Mine and the Geita Gold Mine located in Geita Region, under the ownership of AngloGold Ashanti.

The study sampled 60 respondents, targeting nearly 50-50 gender representation with the consideration of occupation, gender, age and levels of education.

The study aimed to examine local content requirements as provided by law and how those requirements are implemented, monitored, and reported in the two regions.

Tabling the presentation, HakiRasilimali programme officer for research and policy analysis Paul Mikongoti said 22 respondents out of 36 said they were unaware about the issue of gold value addition in their respective areas.

“The reasons given suggest that there was a lack of awareness about the concept of value addition and the absence of value addition activities within their vicinity,” he said.

Furthermore, he said 36 community respondents were asked whether they think extractive companies do enough to help communities participate in the gold value chain. 

He said 23 respondents said they don’t think extractive companies do enough, while the remaining 13 said they think extractive companies are doing enough. When asked about the government’s role in ensuring compliance, 23 out of 36 respondents indicated that they didn’t think the government was doing enough, while nine respondents said the government was doing enough, and four others said they did not know.

“This highlights the need for gold mining companies to do more to engage with the local communities and support their participation in the industry through meaningful partnerships and initiatives that support local economic development and job creation,” he said.

“The finding also highlights the importance of community engagement and participation in designing and implementing local content policies,” added Mr Mikongoti.

He said despite research findings suggesting that local government authorities (LGAs) in Tarime and Geita were involved in monitoring local content implementation in their respective areas, methods used during the process vary from one LGA to another.

Some LGAs relied on joint planning of local content projects, joint provision of training, and maintaining a database of service providers and goods suppliers, according to him.

Regarding whether the local content policy provided a competitive advantage to locals, 16 out of 20 respondent service providers claimed that the policy gives them a competitive advantage to win the tender, while three said it does not, and one said he wasn’t aware.

“The study recommends further research and analysis to determine the effectiveness of local content policy in achieving its objectives,” said Mr Mikongoti.

“This could involve a review of the policy itself and an examination of the processes and procedures in place for the policy’s implementation,” he said.

Additionally, the study recommends the need to develop a comprehensive training programme for suppliers to increase their understanding of the issue of local content policy and how it can be leveraged to gain a competitive advantage.