How Tanzania Is failing to benefit from Gold Mining

There always been speculations about the Gold mining industry in Tanzania, We've heard stories, we've heard the disturbing figures, we've heard lots...

The Mining sector has been under serious debate before. 2.3 per cent of the GDP, which is projected to account 10 per cent in 2025 as stated in the Development Vision 2025. Tanzania is Africa's third largest gold producer, ...you'd never guess... you'd think we'd milk the money out of the gold ..it is Tanzania's biggest source of foreign exchange aint it?
Get this, Tanzania has one billion ounce of gold to be exploited, at present only four percent is being exploited. So why are we failing to utilize our resources ..they are so vast?
Heres an interesting read to cure curiosity... The Religious leaders of the country wanted to see for themselves why this sector is really failing, an interesting find if you ask  me..  How Tanzania is failing to benefit from Gold mining



 This report was commissioned by the Christian Council of 
Tanzania, Tanzania Episcopal Council and Baraza Kuu la Waislamu Tanzania to address important questions raised by 
the mining industry, what it is contributing to our communities and our economy and what it is not contributing. 
Recently there has been increasing tension and unrest about the mining industry. As religious leaders we wanted to 
see for ourselves and fi nd out the truth of what lies behind this unrest



But How is Tanzania to benefit more from Gold?

Im guessing you've heard of the Bomani Report, See here if you havent
The Bomani Commission, created 2007  to investigate the mining sector, issued its report making numerous recommendations on how Tanzania can increase income from the mining of gold, diamonds, tanzanite and other minerals.
 Finance Minister Mustafa Mkulo had said, “Most mining companies operating in the country are currently exempted from payments, including a 30 percent corporate tax and customs duties.”

When the committee report was issued, chairman Mark Bomani said, “Our committee studied mining industries in other African nations and made recommendations to put Tanzania on a par with these … The panel found that Tanzanian royalties on the value of gold and diamond exports were half those in Ghana and Botswana.”

The committee said that Tanzania should increase royalties and grant fewer tax exemptions for new investors. “Everything in the report is already being implemented in one or other African country,” Bomani claimed. The report also recommends “timely and fair compensation for communities displaced by mining, as well as procedures for repairing environmental damage…Other proposals may result in amendments to current rules that allow duty-free equipment imports, fuel-levy relief and other tax concessions, but the committee rejected a windfall tax on company profits, as this would be difficult to implement.”
This brilliant idea was opposed saying we would chase away investors, and that the only way to increase our Gold rev is to better infrastructure to attract more investors... O_0