Policy Research
Policy Research
Rethinking Mining Policy for Tanzanians
Mining remains one of Tanzania’s most promising sectors for economic growth and national development. Yet, the policy and legal reforms introduced after 1985 aimed at liberalizing the economy and attracting foreign investment have disproportionately favored multinational corporations at the expense of local communities and small-scale miners.
These reforms marked a decisive shift from Tanzania’s post-independence socialist model to a market-oriented framework. While foreign direct investment increased, the resulting regulatory environment granted sweeping privileges to large-scale investors, often sidelining Tanzanians especially those living in mining-affected areas. As a result, communities continue to face land dispossession, environmental degradation, exclusion from decision-making, and limited opportunities to benefit from the wealth of their natural resources.
Through policy research, critical challenges have been identified, including
- Displacement of artisanal and small-scale miners without fair consultation or compensation.
Large-scale mining operations often acquire land traditionally used by artisanal and small-scale miners, forcing them off their sites without prior notice, proper dialogue, or adequate support. This undermines livelihoods and disrupts the informal local economy that supports thousands of Tanzanians. - Limited local employment and lack of meaningful participation in large-scale mining operations.
Despite promises of job creation, many large mining companies hire workers from outside the communities or even from abroad, offering only low-paying or temporary roles to locals. Opportunities for skill development, career advancement, and decision-making participation remain limited for Tanzanian citizens. - Opaque revenue systems, where royalties and taxes are directed to central government with minimal returns to local authorities.
Mining revenues are often collected at the national level, but little of it trickles down to the local or district governments where mining takes place. This centralization limits local development opportunities and undermines the ability of communities to benefit from the resources extracted from their lands. - Environmental harm such as pollution, deforestation, and loss of livelihoods.
Mining operations contribute to significant environmental degradation—contaminating water sources, destroying forests, and degrading arable land. These effects often go unmonitored or unaddressed, directly impacting farming, fishing, and pastoralist communities who depend on natural ecosystems for survival. - Costly international arbitration cases, which expose Tanzania to financial losses due to weak legal frameworks.
In disputes with mining corporations, Tanzania has repeatedly faced lawsuits in international tribunals. Due to inadequate legal protections and poorly negotiated contracts, the state often incurs large financial penalties—diverting public funds away from essential services like health, education, and infrastructure. - Weak community protections, with inadequate consultation or compensation for land loss, environmental impact, or cultural disruption.
Communities affected by mining are rarely involved in decisions that impact their land and way of life. Environmental and social impact assessments are either not conducted or not disclosed transparently. As a result, families lose access to ancestral lands and cultural sites, often without being informed, engaged, or justly compensated.
This research forms the basis of ongoing advocacy for more just, inclusive, and transparent mining policies that prioritize:
- Equitable distribution of mining revenues.
- Stronger protection of community rights and environmental standards.
- Legal and regulatory reforms that hold investors accountable.
- Local participation in decision-making and benefit-sharing mechanisms.
By strengthening voices and mobilizing causes, the aim is to ensure that Tanzania’s extractive industries serve the people not just corporate interests. A just and inclusive mining sector is not only possible, but essential for eradicating poverty, advancing human rights, and achieving sustainable national development.