Between Rhetoric and Reality: Recurrent Resource Nationalism and the Practice of Resource Governance in Tanzania

Abstract

Tanzania has gone through two waves of resource nationalism since independence, with both having significant implications for the country’s evolving approach to governing its resources. This article focuses on the second wave, which began during President Kikwete’s administration (from 2005 to 2015) and was further strengthened under that of President Magufuli (from 2015 to 2021). This article draws on the case of negotiations between the government and Barrick Gold Corporation following mining sector reforms in 2017, which had a negative impact on Acacia Mining Plc, a Tanzania-based subsidiary of Barrick. In drawing on this case, this article analyses the political and economic dynamics associated with resource nationalism and argues that they produce outcomes which contradict the government’s stated intentions as provided for in the 2017 legislation. Whereas the 2017 reforms introduced several progressive provisions relating to the fiscal framework, local content, state participation, resource sovereignty and contract transparency, the agreed framework between Barrick and the Tanzanian government effectively diluted and undermined many of these provisions. In effect, the Barrick case shows greater continuity between resource nationalist reforms under Presidents Kikwete and Magufuli, particularly in the challenges they faced in practice, even though the most recent legislative interventions were seemingly more aggressive, strategic and far-reaching.