Post #141

💡Resource Nationalism Index [ TANZANIA ] As people are going into streets in Tanzania, we decided to look beyond the borders of our region and speak about what Tanzanian resource extraction policies look like through the prism ofour "Resource Nationalism Index" series. Tanzania's main mineral exports are gold, oil and copper. So, how has the Tanzanian government been handling the natural wealth of the nation? 🔸"Process It First" – 6/10 – raw materials are prohibited from exporting, though this does not apply to intermediate products (copper concentrates and doré gold), which can be sold abroad; also, no value addition in relation to crude oil is required by law. 🔸 "Share With the State” – 8/10 – The state does not take any share of mineral production free of charge, however, 20% of gold output must be first offered for acquisition to the Central Bank and local buyers. 🔸 “We’re in Too!” – 9/10 – Some 15% of the shares of new gold and copper enterprises must be transferred to the state free of charge and another 30% of the shares must be listed at The Dar es Salaam Stock Exchange, while all oil projects exist in the form of joint venture, where the state-run TPDC holds a >25% stake. 🔸 “The Money's Yours, the People Are Ours" – 9/10 – The law requires up to 100% of personnel (up to 80% for management and technical specialists) 0enterprises in the of solid minerals sector to be Tanzanian nationals and up to 90% of subcontractors to be Tanzanian companies. For oil extraction the requirements are lower. 🔸“Just Pay Up" – 7/10 – Taxes reach 6% for copper and gold, and 12.5% for oil + extra levies on excessive revenues from high commodity prices. 🔸"You Come – You Build" – 5/10 – Companies are obliged to contribute some 0.25% of their turnover to local community development. 🔸“We’ll Do It Ourselves” – 8/10 – The state has established a system of tax breaks for invetments in local processing and makes investments itself through the state-owned companies STAMICO and TPDC. 🔸“Come Here, You Bast*rd!” – 7/10 – The government has effective control over the country's mineral deposits, though illegal gold mining is a problem. Final score is 7.4 out of 10 — the highest in our observations so far, underpinned by strict yet elaborate policies and effective state control. #Tanzania #ResourceNationalism Devils Below