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.

Key Words: local content, value addition, mining sector