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

Abstract

This paper examines the new local content regime in themining sector in Tanzania. It analyses the new approachtaken by Tanzania in implementation of local content policies.The article argues that local content policies and lawsadopted in Tanzania aim at ensuring that the governmentobtains more benefits from extraction of mineral resourcesbeyond the traditional taxes and royalties paid by holders ofmineral rights. Thus, local content policies ensure valueaddition in the mining sector and maximization of economicbenefits from the sector through the use of non-fiscalmeasures such transfer of technology, the generation ofvalue-added in domestic supply sectors, the creation of localemployment opportunities, and increasing local ownershipand control and local processing of mineral products beforeexports. This article concludes that effective implementationof local content regime in Tanzania will generate additionalbenefits to the economy beyond taxes and royalties paid byholders of mineral rights.Key Words: local content, value addition, mining sector