President John Magufuli assured the public last week that he has already signed the bills in to laws, which means the country’s natural resources are now secured and protected than ever.
The new laws facilitate the protection of natural resources and safeguard Tanzanians’ welfare in the sector. The two laws that have direct impact to the country’s natural resources include the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable terms) Act, 2017 and the Natural Wealth and Resources (Permanent Sovereignty) Act 2017.
The laws are expected to drive major changes in the sector and hopefully Tanzanians should expect economic changes in the country. Some ‘wananchi’ who were interviewed by the ‘Business Standard’ said the new laws mark the bright dawn in Tanzania mining sector’s history.
They said it is high time now Tanzanians benefit from their natural resources after decades of shoddy deals. University of Dodoma (UDOM) lecturer, Paul Loisulie said the new laws have been enacted by considering the interest of both investors and the public and that whoever accepts to invest in the area must be a follower of the win-win situation ideology.
Mr Abdalla Zangwa, a gemstone dealer in Kariakoo said the new laws have opened curtains for the government and Tanzanians in general to benefit from their natural resources.
He said the new laws ‘mean business’ for both sides. “The government will be able to know the amount of minerals that are obtained across the country from mining sites, it will get its royalty and other related taxes, in other words, the country and wananchi in general are now going to benefit from the business,” he said.
Another new law, the Natural Wealth and Contracts (Review and Rene gotiation of Unconscionable terms) Act, 2017 enables the Parliament to review all contracts that are entered between companies and the government.
Under this law, Tanzanians through their representatives in the House will be able to review all contracts related to natural resources. For some years, members of the public have been complaining of bad contracts.
However it has been difficult to review them and come up with common consensus. With this new law, there will be the review of contracts and probably those, which do not benefit the country and Tanzanians in general will be put aside for further actions.
The new law is set to give the MPs powers to effectively exercise advisory functions that are stipulated under Article 63(2) of the Constitution, which states that the National Assembly may review any arrangements or agreement made by the Government relating to natural wealth and resources.
Also the new law shall be implied in every arrangement or agreement that the negotiation are concluded in good faith and fairly and, at all times, observe the interests of the People and the United Republic.
The new law also gives powers to the National Assembly to devise the procedure under the Standing Orders of the National Assembly for reviewing any arrangement or agreement made by the Government over natural wealth and resources.
Moreover, with this new law, Tanzanians will see the principle of permanent sovereignty over natural wealth and resources affording fair and equitable treatment to the parties.
On ‘the Natural Wealth and Resources (Permanent Sovereignty) Act 2017’ , basically, the law enables Tanzanians to have permanent sovereignty over all natural wealth and resources while the ownership and control over natural wealth and resources shall be exercised by, and through the Government on behalf of all Tanzanians.
The new law also state categorically that it shall be unlawful to make any arrangement or agreement for the extraction, exploitation or acquisition and use of natural wealth and resources except where the interests of Tanzanians are fully secured and approved by the Parliament.
Moreover, the law makes it compulsory for the government to obtain stake in the business. The new mining laws require the government to own at least a 16 percent stake in mining projects.
Thus any authorisation granted for the extraction, exploitation or acquisition and use of natural wealth and resources, arrangements shall be made or given to ensure that the government obtains an equitable stake in the venture and Tanzanians at large.
Also with this new law, no raw resources shall be exported for beneficiation outside Tanzania, this include banning the exportation of mineral concentrates.
Also the new law states that all earnings from disposal or dealings obtained from natural wealth and resources shall be retained in the banks and financial institutions established in Tanzania. The new laws have also increased the royalty from four percent to six percent.
This will enable the government to benefit more from mining related business. Moreover, all companies that operate in natural resources, public corporate responsibility is no longer an option but compulsory.
This will enable people who live nearby mining site to benefit from the business. The law also requires disputes arising from extraction, exploitation or acquisition and use of natural wealth and resources to be adjudicated by judicial bodies or other organs established in the country and in accordance with laws of Tanzania.
In other words Tanzania will now no longer be forced to go to the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
The two natural resources laws have marked a new dawn in the natural resources sector. It is obvious that with the new laws and regulations, Tanzanians will be able to benefit from the business.
Some ‘wananchi’ who commented on the enactment of the new laws said Tanzanians will now realise the benefits of mining activities in the country. Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi said Tanzania has become the first country in Africa to come up with laws that strongly protect the country’s natural resources.
The Chairman of the joint committee formed to go through the bills after they were tabled in the House early this month, Mr Doto Biteko said for the business to go smoothly, the government will be required to immediately form regulations so that the new laws could come into operation as soon as possible.
Mr Biteko also wants the government to strengthen various institutions that oversee the function and performance of the natural resource sector.
Apart from passing the laws, the government is also pushing for the mandatory listing of mining companies on the Dar es Salaam Stock Exchange (DSE) as part of measures aimed at increasing transparency and spreading wealth from the country’s natural resources.
SOURCE: DAILY NEWS
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