Examining The New Local Content Regime in the Mining Sector in Tanzania

Abstract

This paper examines the new local content regime in the mining sector in Tanzania. It analyses the new approach taken by Tanzania in implementation of local content policies. The article argues that local content policies and laws adopted in Tanzania aim at ensuring that the government obtains more benefits from extraction of mineral resources beyond the traditional taxes and royalties paid by holders of mineral rights. Thus, local content policies ensure value addition in the mining sector and maximization of economic benefits from the sector through the use of non-fiscal measures such transfer of technology, the generation of value-added in domestic supply sectors, the creation of local employment opportunities, and increasing local ownership and control and local processing of mineral products before exports. This article concludes that effective implementation of local content regime in Tanzania will generate additional benefits to the economy beyond taxes and royalties paid by holders of mineral rights. Keywords: local content, value addition, mining sector