Advancing accountability in extractive sector key to growth

Minister of minerals Doto Biteko with TEITI Committee chairman  Ludovick Utouh along with PArliamentary secretary in the ministry of minerals Prof Simon Msanjila and the Permanent Secretary of the ministry of Energy Eng. Zena A. Said at the inauguration of the TEITI reports for the fiscal year 2016-2017 and 2017/2018 on June 26, 2020.

What you need to know:

  • Benefits accruing from exploitation of the rich natural resources such as minerals, oil and natural gas, remained largely secretive or unreported publicly, and often raised suspicion from host communities who felt left behind or even ignored.  

By Jafari Juma

Rising up the levels of transparency and accountability in the extractive sector offers an opportunity for Tanzania and investors to jointly turnaround the story of the extractive industry for the better.

Challenges of corruption and poor governance of the natural resources exploitation has plagued the development of the extractive sector for years at the expense of both the country and its people as well as the investors. 

Benefits accruing from exploitation of the rich natural resources such as minerals, oil and natural gas, remained largely secretive or unreported publicly, and often raised suspicion from host communities who felt left behind or even ignored.  

But that should not necessarily be the case. A new dawn to usher in mutual partnerships and trust could make Tanzania atop notch destination for investors. Transparency and accountability remains a critical impetus to the vision of doubling the contribution of the extractive industry to Tanzania’s GDP in the near future.

Since its establishment, Tanzania Extractive Industry Transparency Initiative (TEITI) has endeavoured to deepen openness, transparency and accountability among key players in the extractive sector.  

TEITI is the Tanzania Chapter of the global Extractive Industry Transparency Initiative (EITI) that set standards of transparency and accountability in Extractive Industry (EI).

Extractive Industry (EI) companies are those companies engaging in the extraction of minerals, oil, and gas.

Some 35 resource rich countries are implementing the EITI and have committed to disclose company payments and government receipts of taxes and revenues from the extractive sector. Tanzania was accepted as an EITI implementing country by the EITI International Board in 2009.

The TEITI-Multi Stakeholder Group (MSG) – comprises of 16 representatives from the government, companies and civil society which oversees implementation of EITI in Tanzania. The TEITI-MSG is supported by the TEITI Secretariat which is responsible for the daily coordination and implementation of activities under the guidance of the TEITI-MSG.


Why TEITI 

TEITI strives to enhance transparency and accountability of payments made by extractive companies and revenues received by the government from the oil, gas and mining sectors. It aspires to enhance public awareness by publishing the payments and the revenues accrued from Extractive Industries.

In Tanzania, the TEITI 11th Report for the Fiscal year 2018/2019 was launched in October 2021 alongside the government’s issuance of a Mining Licence for Kabanga Project to Tembo Nickel Company which expects to invest a total of $412 million, according to a submitted feasibility study.

Minerals minister Doto Biteko says TEITI reports have been of great success, giving the government a chance to know the contribution of the extractive industry in the national economy. He admitted that there were gaps before the establishment of the TEITI. According to the minister, the TEITI reports have shown that transparency is steadily taking root. He said a report will now be compiled on the contribution of the small scale miners after realising that gold mining contribution has risen.

The mining industry has attained major transformation in recent years following a rat of new laws and regulations meant to ensure the country received a fair share of income from exploration and mining activities. Chairman of the Parliamentary Committee for Mining and Energy, Mr Danstan Kitandula, said at the launch of the latest TEITI report that such reports have been key working tools for Parliament. He said transparency reports have been showing how the extractive industry is advancing.   Calls have been made for the spreading of the important work that TEITI is doing so that the lower levels of leadership and the public at large play a part by familiarizing with the laws and regulations that govern the extractive sector.  

With TEITI input, stakeholders can take appropriate action to ensure benefits accruing from natural resources and well governed and contribute fairly and evenly to the development of local communities and the nation. The reports have formed part of a wider debate in the communities as the country looks to deepen economic growth driven by the contribution of the rich natural resources.

TEITI is currently in plans to roll out the 2021/2022 report on levies, taxes and other payables by the mining companies, oil and gas exploration companies during the period 2019/2020.