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Budget analysis for the Ministry of Minerals and the Ministry of Energy in the implementation phase of FYDP III 2021/22- 2025/26
A Five-Year Development Plan is nearing its final year, marking the last phase in the government’s efforts towards achieving Tanzania’s Development Vision 2025 goals. The plan has a policy thrust of leveraging the natural resources sectors, particularly minerals and energy, to drive competitiveness, industrialization, and inclusive growth. Regarding this, HakiRasilimali undertook the budget analysis to assess how the Ministries of Minerals and Energy have managed budget planning in line with national goals for resource-based industrialization and inclusive growth.
The analysis employed a comprehensive methodology of assessing five years of budget books, official reports, and sectoral data. The findings revealed several challenges, and the key twelve concerns have been presented, such as underperformance in revenue collection, ineffective sectoral budget planning, surge in mineral smuggling, gender concerns based on local employment data, inadequate support to small-scale miners, and strategic project delays, like LNG, etc. Additionally, insufficient management of geoscientific data and corporate social responsibility initiatives emerged as recurring concerns.
To address these issues, the report provided several recommendations, including but not limited to strengthening extractive sector governance in several aspects, such as budgeting, revenue collections, and enhancing robust measures for curbing mineral smuggling practices. It also calls for full-time negotiation teams for LNG projects. Moreover, the report strongly emphasises effective and efficient extractive and revenue management to improve governance of extractive activities and ensure that the sector contributes not only to economic growth but also to inclusive development and long-term sustainability.
