Tanzania: Mineral Dealers Appreciate Reforms in Mining Sector

STAKEHOLDERS in the mining sector have appreciated the government efforts to revamp the sector for the benefits of all Tanzanians.

Speaking separately to the ‘Daily News’ here yesterday, the players particularly praised President John Magufuli for his relentless efforts to ensure that all Tanzanians benefit from the mineral wealth.

Tanzania Mineral Dealers’ Association (TAMIDA) Chairperson Sammy Mollel said as mineral dealers they are delighted to see the current regime superbly managing the sector through the raft of policies and reforms that have been effected.

“Clearly, the president wants to see the mining sector growing in leaps and bounds as it plays a crucial role in the country’s economy,” said TAMIDA chairperson.

Mr Mollel, referring to a publication on SHOUT AFRICA. com on how Tanzania attained record high mining revenues despite the Acacia conundrum, noted that the country’s economy was highly dependent on the lucrative industry.

He attributed the surge in collection of royalties in different mines in the country to President Magufuli’s fresh breath of air into the sector. “The royalties are now many times higher than what the government used to collect previously when the sector was mismanaged,” he said.

According to Mr Mollel, the newly introduced reforms will restore the United States of America’s trust that once waned as far as the country’s exportation of minerals was concerned.

“Almost 80 per cent of Tanzanite is exported to the US, with the reforms, we hope to have more minerals exported,” he said. Echoing similar sentiments, gem trader, director and shareholder of Tanzanite One Mining Ltd Faisal Juma Shahbhai welcomed President Magufuli’s array of measures to streamline mining and mineral exports.

He argued that the sector is now witnessing positive results, thanks to recent reforms. “The president wants to see all precious gemstones mines in the country benefiting Tanzanians and that is indeed commendable,” explained the Tanzanite One boss.

He said President Magufuli epitomised true patriotism that was amiss in running and managing the country’s mining industry. “It is undisputed that the previous practices were hell bent on hurting the country’s economy; they worked not for the benefit of the nation, knowingly and unknowingly.

But we’ve now seen light at the end of the tunnel as the reforms will work in the best interest of all Tanzanians,” he added.

Since he assumed the country’s top office in November 2015, President Magufuli introduced raft of policies to restore the sector’s old glory. One of the moves included the construction of a wall around the 15 square-kilometre perimeter at Tanzanite mines in Mirerani to curb smuggling of the precious gemstones.

The government also introduced legal amendments, institutional reforms and initiated task forces to renegotiate mining contracts with mining giants like Acacia and Tanzanite One.

The efforts, opposed by a section of mining investors, are now yielding results. A statement posted on government website revealed that for the first time since independence, the mining revenues have surpassed the annual target of 310bn/-, with collections by the end of May standing at 311.33bn/-.

When President Magufuli came into power in 2015, annual mineral revenues were 210bn/-, equivalent to a mere four per cent of GDP. Last year revenues rose to a staggering 301bn/- .

This years’ record could double the 2015 data and the sector’s contribution rose to over five per cent contribution to GDP. President Magufuli’s initiatives have stolen limelight in various media outlets worldwide.

For instance, last Sunday, one of the media publications in Africa-Shout Africa carried an article titled ‘Tanzania Attains Record High Mining Revenue despite Acacia Conundrum’.

Shout Africa is an African news platform that aims at bringing attention to the continent, her people and diaspora in respect to all spheres of human development.


Source link : https://allafrica.com/stories/201906110815.html

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Publish date : 2019-06-11 16:02:04

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