Tanzania offers an established operating environment.
Tanzania provides one of the most attractive investment environments in Africa following its embrace of open-market economic policies starting in the mid 1990’s. Privatisation of state industries, investment incentives and a liberalised foreign exchange controls have all contributed to its success in attracting foreign investment in the last twenty years. Given the country’s rich endowment of mineral resources principally gold, diamonds, gemstones and more recently nickel and uranium, mining has been one of the main sectors to have benefited from Government reform and investment incentives.
Key economic factors that make mining investment attractive in Tanzania are:
- Globally competitive tax and regulatory regime for mining investors.
- Accelerated and simplified handling of investment proposals.
- Technical staff trained in various disciplines associated with mining.
- An abundant supply of labour.
- A peaceful working environment free of confrontations, ethnic strife and labour disputes.
- Well-established mining services industry.
Overview of Tanzania
Tanzania is located in eastern Africa along the Indian Ocean and bordered by Kenya, Uganda, Rwanda, the Democratic Republic of Congo, Burundi, Zambia, Malawi and Mozambique. Tanzania includes the islands of Mafia, Pemba and Zanzibar. The administrative capital, Dodoma, is situated near to the centre of the country and Dar es Salaam (the financial and economic centre) is located on the coast. Tanzania measures 945,040 km2, with a population of approximately 52.5 million people.
Infrastructure and accessibility in Tanzania are reasonable. There is an international airport at Dar es Salaam and Kilimanjaro as well as non-international airports in some regions and numerous other airstrips at regional centres throughout the country. Power and water supplies are generally relatively poor and significant investment is required to improve this situation. Tanzania has experienced a relatively stable political environment since the mid-1980s with elections and transitions progressing peacefully. The legal system is based on English common law. Despite a number of economic reforms over the years, Tanzania remains one of the poorest economies in the world, depending heavily on agriculture, forestry, and fishing, which, together account for approximately 29 per cent. of GDP and approximately 34 per cent. of all exports. Gold accounts for approximately 21 per cent. of all exports.
Natural resources in Tanzania include hydro-electric potential, coal, iron, gemstones, gold, uranium, natural gas, nickel, diamonds, crude oil potential, forest products, wildlife and fisheries. Agriculture produce includes coffee, cotton, tea, tobacco, cloves, sisal, cashew nuts, maize, livestock, sugar cane, paddy, wheat and pyrethrum.
The country has one of the highest levels of exploration in Africa due to its overall prospectivity, political stability and investor friendly policies. Gold presently attracts the majority of the investment and the Lake Victoria Goldfields (where Imweru and Lubando are located) hosts some of the country’s major gold mines.
More detailed information on the Tanzanian Government policy in regard to minerals, relevant legislation and regulation can be found on the Ministry of Energy & Minerals (Tanzania) website https://mem.go.tz/. General Information on Tanzania can be accessed through the Tanzanian Government website: http://www.tanzania.go.tz