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Tanzania's shocking vast wealth... As massive poverty continues to rock the majority of Tanzanians

Discussion in 'Jukwaa la Siasa' started by nngu007, Nov 19, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    Nov 19, 2011
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    As massive poverty continues to rock the majority of Tanzanians, the latest data reveal that Tanzania`s wealth in terms of the top five metals out of eleven provable mineral deposits amounting to millions of tonnes.

    It is hard to believe it, but that is the reality in a country where 38million plus population lives in abject poverty, below a dollar per day, while 89percent of the total population survive on a single meal per day.

    According to a geological survey conducted last year by the ministry of energy and minerals, Tanzania has huge reserves in eleven key minerals which include gold, Nickel, Tanzanite, Diamonds, copper, Iron ore, coal, Limestone, soda ash, gypsum and phosphate.

    The five key minerals and their provable amounts in brackets is Gold (2,222tones), Nickel (209million tones), Diamonds (Carat 50.9million), Copper (13.65million tones), and Iron ore (103million tones).

    However since this was just a geological survey undertaken by experts last year, its actual result is approximated to be accurate by up to 70 percent.

    So far, only three types of minerals - gold, diamonds, Tanzanite - are being fully mined by multinational companies which at the end of the day take 97percent, leaving only peanut to the original Tanzanian owners.

    If well managed through sound, people-centered mining policies, the mining sector can catapult Tanzanians to the proverbial promised land in decades and generations to come.

    Comparing these huge deposits and the actual situation of poverty in the country, the message that comes across one`s mind is that Tanzania is in what experts describe as `resource curse`.

    The term `resource curse` refers to the observation that nations with rich endowments of natural resources (oil, metals, timber) often dramatically under-perform economically relative to what one would expect.

    Common sense and simple economics suggest that countries blessed with an abundance of natural resources should live long and prosper.

    Yet over many years, it has been observed that nations rich in oil, gas, or mineral resources have been disadvantaged in the drive for economic progress.

    Why are we poor?

    Perhaps the biggest question that begs an urgent answer is; why are we so poor despite having all these huge minerals deposits?

    It is a question that policy makers and politicians have been avoiding to seek answers for.

    Tanzania like many other African countries is highly blessed with rich natural resources, but its people are swimming in the deep sea of massive poverty.

    But the appalling truth is that instead of financing people`s development, Africa's huge mineral resources were used to fund the brutal civil wars that ravaged millions of people during the past four decades.

    Today in Africa only a few countries like Botswana, Ghana and South Africa have managed to use their natural resources, especially minerals, to facilitate development and welfare to their people.

    This example is vividly manifested in the Democratic Republic of Congo, Sierra Leone, Ivory Coast, Nigeria, Sudan and Angola whereby masters of the wars used natural resources to finance their deadly power struggle.

    However in Tanzania, there wasn`t any civil war apart from the role played by the founding President, (the late) Dr Julius Nyerere, in liberating Southern African countries during the nationalist struggle.

    While it is an undeniable truth that the move to allow the private sector to participate in the mining industry was brilliant one, the truth is that due to poor policies introduced by the third phase government, the whole idea has become a disaster to Tanzanians.

    This is well echoed in the lucrative mining industry which has been mainly benefiting multinational companies, while paying the government a small slice of the cake.

    Last year, for instance, the Minister for Energy and Minerals, William Ngeleja, told the parliament that during the period between 2001 and 2006, Tanzania produced gold worth $2.6 billion (Tshs3.38 trillion), but the government earned only $78 million.

    In simple arithmetic, this is just 3 percent of the total revenues generated from thousands of tonnes of gold produced in the Lake Victoria gold belt. It also shows that the government earned an average of $13 million annually during that period from the multibillion industry whose real investments currently is valued at $2.5 billion.

    According to the available statistics from the mining industry, from June 2000 to December 2006, the two biggest gold mines in the country produced a total of 5,686,710 ounces of gold, which at the current gold price of $600 per ounce is valued at Tshs 4.3 trillion ($ 3.3 billion), but what the nation earned is frightening and a shame.

    While mineral production has increased in Tanzania in the past few years with export per year estimated to be nearly $900 million (Tshs1.17 trillion), the contribution of the mining sector to the Gross Domestic Product (GDP) remains very minimal, accounting to 3 percent.

    According to the National Economic Survey report released in 2006, the growth rate of mining and quarrying sector increased from 15.4 percent in 2004 to 15.7 percent in 2005, whereby the increment was attributed to new investments in Tulawaka gold mines in Biharamulo District, Kagera Region.

    The report further states that, the contribution of the sector to GDP, which is the total value of goods and services produced in a country during a year, increased from 3.2 percent in 2004 to 3.5 percent in 2007.
  2. nngu007

    nngu007 JF-Expert Member

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    So the truth is that due to poor policies introduced by the third phase government, the whole idea has become a disaster to Tanzanians.

    Now we know the reason why we don't stop the investors from taking Cakes, while the government is left with just a small piece to freed 48m people?
  3. Ndahani

    Ndahani JF-Expert Member

    Nov 19, 2011
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    For the majority to benefit, the best way I think is to increase agricultural output and improve agro processing. Watu wengi wanaajiriwa kwenye kilimo,lakini hakina tija

    RAJ PATEL JR JF-Expert Member

    Nov 19, 2011
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    Tanzania is among the so called "Never-to-Develop Counties" in the world
  5. Ndahani

    Ndahani JF-Expert Member

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    Kwa akili hii tuliyonayo nakubaliana kabisa na wewe
  6. nngu007

    nngu007 JF-Expert Member

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    Agric? all them lands foreigners are fighting as if there is no END? and our Government of CCM just OK it...
  7. i411

    i411 JF-Expert Member

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    Na wachangiaji wakubwa wote humu wakaikimbia hii wakaenda kuchangia zile zinazoponda ccmi na cdm, halafu ndo wanasema wanatafuta suluhicho la umasikini wetu ........
  8. P

    Paul J Senior Member

    Nov 19, 2011
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    we should not expect the natural resources that we have will benifit the majority poor tanzanians under short sighted, poor leadership and corrupt government officials! The system is completely rotten and we should not expect perfume out of it! We all have witnessed the reasoning capacity of our leaders particularly when it comes to global issues where our economy is being compromised with highly developed countries our current povert compared with our past poverty! Such reasoning can never and will never solve the poverty problems that we have! Mwalimu Nyerere once upon said; anatokea mtu mjanja anamkuta mjinga akiwa na dhahabu kubwa, anamwambia ndugu yangu hiyo si dhahabu, hii ya kwangu ndo dhahabu, tubadilishane uchukue ya kwangu nami nichukue ya kwako! Mjinga huto anampatia mjanja huyo dhahabu yake na mjanja anampatia lichupa tu alafu mjinga anatoka akishangila! These are the type of leaders we have today! They will say I am abusing them but the truth is that receiving 3% out of 97% is the proof and measure of that ignorance and stupidity! Still they are calling themselves leaders, call your self muderers because inocent citzens are critically suffering because of your poor decicion making! Think critically you leaders, to be honest you will never escape the judgement even if you repent seven times seventy because paying five times the loss that you have caused to innocent Tanzanians by accepting 3% out of 100% for the natural resources that God gave every creature that was born in the land of Tanzania you will never afford!
  9. babukijana

    babukijana JF-Expert Member

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    najuta kuwa mtanzania
  10. Goldman

    Goldman JF-Expert Member

    Nov 19, 2011
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    all we need is a serious minded leader who is not afraid of anyone who supported him, Zambia during Mwanawasa reign they increased tax on copper, now Sata is going to do the same, why we cant do that?
    in Botswana there are some diamond mines which are completely under government control. How did they manage? They took loan and employed experts from abroad in areas where they lack, those experts are paid salary thats all! and the government take all, its simple it can be done easily.
    Most of times I do wonder how can we have so many leaders but they seem to be all stupid! We can develope I see it can be done, why we are the only one who sees that we can develope but we are not!
    Do people change once they are in leadership! How can they all change!
  11. Njowepo

    Njowepo JF-Expert Member

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    Kwenye miti hakuna wajenzi