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Tanzania's untapped wealth; Tanzania is ranked fourth after SA, DR of Congo and Nigeria

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by nngu007, Feb 17, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    Scarcity Amid Plenty


    In terms of mineral diversity and wealth, Tanzania is ranked fourth after South Africa, Democratic Republic of Congo and Nigeria, reports ROBERT K MUGO

    Mining rarely, if ever, gets as much attention as coffee, tea and tourism as a key potential source of revenue for the East African countries. This is despite the fact that the region is known to host significant quantities of several important minerals, including gold, titanium, nickel and diamonds. These minerals, if developed and managed well, have the potential to contribute significantly to the economic development of the region, leading to improved livelihoods for the citizens.


    Of the East African countries, Tanzania is known to be the most well endowed with minerals, with vast quantities of gold, nickel, diamonds, gemstones and coal, amongst other valuable minerals. The country is ranked fourth in terms of the diversity and richness of mineral resources in Africa, after South Africa, Democratic Republic of Congo and Nigeria.


    Mining started in Tanzania well before the colonial period and was mostly in the hands of the private sector in the early years. However, following independence, Tanzania oriented itself towards nationalisation and State ownership of industries. This resulted in the disappearance of foreign investment with subsequent declines in mining investment.


    Tanzania has, however, witnessed a resurgence of mining since the early ’90s. This renewed interest is a result of changes in the political structure and trade liberalization policies beginning in the mid-80s, when President Ali Hassan Mwinyi took over the presidency.


    A number of reforms, supported and funded largely by the World Bank, were made to encourage mining growth. These reforms culminated in the 1997 Mineral Sector Policy, which emphasised the primary role of companies as mining operators, and the government as regulator. The reforms have had a huge impact on the growth of the Tanzania mining sector over the past 15 years. The sector has been one of the fastest growing in the Tanzanian economy, with an average growth rate of 12 per cent per annum.


    Mining has attracted over US$2.5 billion in foreign direct investment (FDI) since 1998. The contribution of the mining sector to GDP has risen from about TSh220 billion in 2002 to about KSh740 billion in 2007. At the same time, the value of exported minerals rose from US$440 million in 2002 to about US$890 million in 2007. A total of nine large large-scale mines are now in operation in Tanzania, with six having come into existence only during the last ten years. These mines employ approximately 9,000 Tanzanians.


    Despite the very significant growth witnessed in the Tanzanian mining sector over the last decade, concerns have been expressed by some stakeholders that the country is not getting its fair share of revenues from mining companies. Media reports about environmental and social issues at some mining sites and concerns by artisanal (small-scale) miners that they are being pushed away to make room for large-scale mining have further served to increase public awareness about the role of the mining sector.


    Minerals by their nature are non-renewable resources. Therefore, once mined and processed they are no longer available (save for recycling). It is important that mineral resources be developed in a way that contributes to sustainable development. So, what can Tanzania, and indeed other East African countries that are looking to develop their natural resources, do to ensure that they escape the so-called Paradox of Plenty or Resource Curse situations where countries endowed with abundant natural resources often tend to be some of the poorest and least stable places (as in the case of the DRC, Sudan and Sierra Leone)?


    For starters, the East African countries should not abandon past and present political, legal, institutional and economic reform efforts geared towards liberalising economies and making it easier for local and international investors to do business in the region. However, reforms need to be targeted and customised to the unique needs of the people and realities of the region, as opposed to being externally-driven. Moreover, there is a need to undertake periodic review of policies that have been in place for a while, so as to ensure they remain valid and appropriate for today’s circumstances.


    In Tanzania, several attempts have been made to review the laws and regulations governing mining sector development. For example, upon his election in 2005, President Jakaya Mrisho Kikwete undertook to effect legal and policy reforms in the mining sector. In 2007, the Tanzanian Government appointed a Presidential commission headed by Judge Mark Bomani to investigate the mining sector and review mining contracts made between the government and mining companies.


    The Bomani Commission made a number of recommendations pertaining to the fiscal regime and other mining sector-related issues. Most of the recommendations have yet to be acted on. Because mining activities do eventually come to an end, it is important that revenues generated by mining projects during their operational periods be used wisely to fund other sustainable long-term economic activities that will continue to exist long after mining ceases. This may include industries and businesses that are un-related to mining, so they can serve as economic engines once mining activities come to an end.


    One possible way to ensure that revenues generated from the exploitation of non-renewable resources such as minerals do not all go into general government revenue, but that a portion is invested for other economic activities, is to set up a permanent savings and or investment fund. Such a fund typically receives a portion of the royalties or taxes collected by the government, to be used as a saving for the future, for use in diversifying the economy or for other purposes as may be deemed to be appropriate. Some examples of such funds include the Norwegian Oil Fund and the Alaska Permanent and the Alberta Heritage Fund (Canada).

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    [h=2]HERE'S WHAT TANZANIA OFFERS INVESTORS[/h]
    • Over 800,000 kilometers of varied geological terrains with potential mineralresources.
    • Ongoing exploration work resulting in discovery of resources in excess of 45 million ounces of gold, 1.5 million tones of nickel and 50 million carats of tanzanite.
    • An Archaean shield environment with a number of classical Canadian and Australian type greenstone gold lode deposits, many capped by tropically weathered enrichment zones.
    • An extensive Proterozoic terrain containing lode and near surface gold deposit types, now attracting exploration attention in South America, West Africa and elsewhere.
    • Potential for epithermal gold deposits in the faulted younger rocks on the coastalplain.
    • A world-class diamondiferous kimberlite at Mwadui and more than 200 other kimberlites, many of which are yet to be thoroughly evaluated.
    • Scores of occurrences of high value coloured gemstones, such as emerald, ruby, tsavorite, sapphire, tanzanite, and alexandrite.
    • A wealth of other opportunities in minerals, including coal, iron, tin, graphite, evaporates, kaolin, limestones, dimension stones, phosphates and gypsum.
    • Recent history of production decisions by well-financed, international companies.
    • Ample inventory of unexplored mineral ground.
    • A comprehensive, systematically archived data base on geoscientificinformation and mineral resources.
    • Minimal competition at present from large multinational mining firms.
    • Globally competitive tax and regulatory regime for mining investors.
    • Accelerated and simplified handling of investment proposals.
    • Technical staff trained in various disciplines associated with mining.
    • An abundant supply of labour.
    • A peaceful working environment free of confrontations, ethnic strife andlabour disputes.
    • Well-established supporting services.
     
  2. nngu007

    nngu007 JF-Expert Member

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    We Offer, We Make them Rich and they Leave... New Ones are Coming we do the same... Over and Over againe... but Us we Majority we remain Poor except our loud leaders knows where to follow the falling cents and claim as theirs

    Those who claim where our leaders some are now claiming to live overseas happy forgotten where did they swindle damn Money...
     
  3. M

    Mkandara Verified User

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    Hii habari kidogo inanitatiza..
    Kama kinachozungumziwa ni Mining hiyo Nigeria inaingia vipi hapa badala ya Ghana?.. na kama swala ni mchanganyiko na Mafuta Je, Libya imesimama wapi?
     
  4. J

    JokaKuu Platinum Member

    #4
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    ..how about ANGOLA??
     
  5. Dotworld

    Dotworld JF-Expert Member

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    Mkuu, ulichoongea ndio ukweli kabisa na inasikitisha sana - lakini pia sisi kama wananchi pia ni sehemu ya tatizo - badala ya kuchukua hatua tunawatazama na kubakia kulalamika tu - bila kulazimisha changes kila kitu kitaendelea kuwa hivi hivi - hebu tuwe sehemu ya mabadiliko kwa ajili ya nchi yetu na vizazi vijavyo
     
  6. nngu007

    nngu007 JF-Expert Member

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    In Reference to Natural Resources we can beat Angola My Friend... Did U see Botswana the best Country in Africa either???
     
  7. nngu007

    nngu007 JF-Expert Member

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    Ni kweli ... Mabadiliko yetu, nilidhani yataanzia Juu kwenda chini, lakini woote walioko juu wa Serikali wa Upinzani wote to tosheleza na nipe kikombe; inaniuma sana nikisema itatoka chini kwenda juu, sababu hapo ndipo tutaona utofauti wetu baada ya ukombozi toka chini hapo ndio tutajiona zaidi kweli wewe ni zambarawe haufai hapa mimi ni karanga nafaa juu ya mti huu n.k - kwahiyo - kiongozi wa mabadiliko toka Juu kwenda chini hajazaliwa...
     
  8. nngu007

    nngu007 JF-Expert Member

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    Du you know Nigeria has Oil, Gas, Bouxite and best Alluminium in the world?

    And they do have a lot of Natural GAS
     
  9. M

    Mkandara Verified User

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    Beside Oil, nchi za west kama Ghana ina vyote hivyo hata Egypt na Angola ndio maana nashndwa kuelewa Nigeria imeingia vipi..Utajiri wa natural resources kwa Africa huwezi hata kupanga ila najua kweli Tanzania tupo juu..
     
  10. nngu007

    nngu007 JF-Expert Member

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    Egypt has only GAS which is not enough... Egypt wealth is SUEZ Canal... nothing else they don't have Natural Gas; they do have a very dirty GAS costs a lot to purify; The Problem is all those country have been explored more than 100 times; Tanzania they have not explored that much and everytime they find something and no ammount it is way too much...

    Angola was triple explored by Russia and they did not want to stay they let it go easly but they never let go CUBA their GAS and OIL is Clean and a lot than Angola

    Egypt the same so SUEZ canal is bring food on the table for Egyptians and not Natural Resources...
     
  11. M

    Mkandara Verified User

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    Bro, You don't get do U? Egypt has Natural gas and Oil along with Nigeria.. They have more natural gas than Nigeria as Nigeria has more Oil tha Egypt...Ain't talking of countries wealth at all..Nigeria wealthy depends on Oil which bringing 98% of their total income..So?..

    Come again - Egypt has Dirty gas? guess U don't have any clue about gas deposits - Egypt is ranked 12 in the world gas producing Countries, has the highest gas deposits in Africa.
     
  12. nngu007

    nngu007 JF-Expert Member

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    They can have it but not enough for exports and earn forex



    • Sources & Uses
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    ‹ COUNTRIES[h=1]EGYPT [​IMG][/h]
    GLOSSARY › FAQS ›

    [h=2]Country Analysis Brief ›[HR][/HR][/h]
    • Egypt is a significant oil producer and a rapidly growing natural gas producer. The Suez Canal and Sumed Pipeline are strategic routes for Persian Gulf oil shipments, making Egypt an important transit corridor for world energy markets.
    • Egypt is now reliant upon oil imports to meet domestic energy demand.



     
  13. M

    Mkandara Verified User

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    nngu007,
    The arguement here is Nigeria being ranked above Other countries such as Angola, Ghana and Egypt on untapped wealth. That's where am at, and right now you want me to believe they they don't have enough to export while ranked 12 in the world above all African Nations yet U have chosen Nigeria adding Natural gas as (untapped)wealthy. Do we (Tanzania) has enough to export?..I can't argue more.. plse check this out as well - Bofya
     
  14. nngu007

    nngu007 JF-Expert Member

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    -- I did send U the same article... Egypt is now reliant upon oil imports to meet domestic energy demand.
     
  15. M

    Moelex23 JF-Expert Member

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    Mkuu Mkandara, hapo kinazungumziwa Diversity, ( Different types kama Tanzanite, diamond, uranium, gold nk) ambayo Mwenyezi mungu ameturehemu kupita kiasi na utajiri ambao tungeweza kabisa kuufanya uwe shortcut ya development ya Tanzania.

    Tanzania ni NCHI TAJIRI SANA, Oil na natural gas in the next 10yrs tutakuwa tunaproduce ya kutosha kuuza EAC yote, ukichanganya na ardhi nzuri yenye rutuba na eneo kubwa la kutosha, mbuga za wanyama, kuwa na landlocked countries kama Burundi, Rwanda wakati sisi tuna bandari kama DAR< TANGA< MTWARA.

    Kwa kweli Tanzania kama tukipata kiongozi imara kama KAGAME, tutarealize potential yetu na utajiri wetu.

    God Bless Tanzania
     
  16. s

    saddam Member

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    nakubaliana na hoja nimesoma kwenye the east african mwezi jana,ukweli DRC kama ingekuwa tapped it would have been the richest country on earth because it has almost everythin ikifuatiwa na brazil kuanzia madin, mafuta na udongo wenye rutuba, about Egypt kumbukeni its bare desert ina mafuta kidogo sana udongo haufai pia japo ina gas but the quality is very poor but they do not have valuable minerals!!! Angola has oil and diamond nothing else significant Nigeria has everything only diamond is no there.the truth tanzania is a sleeping giant only few high way robbers(politicians) know how to make richness out of this.
     
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