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The extractive Sector: Realizing Competitiveness and Industrialization for Human Development in Tanzania.

What should we know about Jukwaa La Uziduaji?

Since 2010, Civil Society organisations working in the mining, oil and gas sectors in Tanzania have been organising an annual national dialogue initially dabbed as Tanzania Mining Indaba but since 2019 changed to “Jukwaa La Uziduaji”.

Jukwaa La Uziduaji has been organised aiming at bringing together crucial extractive sector stakeholders and their respective blocs (i.e., Civil Society Organizations, government officials, parliamentarians, media, companies, communities, and development partners) to effectively engage in in-depth discussions on the issues that impact the extractive sector using the 360-degree lens, sharing experiences, as well as contemplating on how to form strategic collaborations.

In all Jukwaa La Uziduaji sessions, several deliberations have been made vital, among them being a continued call for having consultative frameworks between the CSOs and the government, Parliament, and Companies to improve the extractive sector governance. Other key outcomes were government commitments to work on the community-related issues to reduce vulnerability triggered by the extractive’s investments, such as Land compensation delays and improved respect for human rights and women’s rights.

Why Jukwaa La Uziduaji 2022?

Tanzania is endowed with vast deposits of minerals ranging from metallic, industrial and energy-generating resources ranked among others the most diverse in Africa and globally. The exploration boom of the critical minerals is expected to position Tanzania at the centre and a potentially meaningful change towards achieving a just transition to green energy technologies.

Notably, to realise competitiveness and industrialisation for Human Development 2025, the Tanzania Development Vision 2025 calls for, among others, the utilisation of domestic resources in a manner that “builds adaptive capacity for promoting economic activities that enjoy comparative and competitive advantages” that are free of external economic shifts and shocks. Further, the government is committed to the FYDP III to promote natural resource-based industrialisation, which the extractive sector has much to offer. Thus, it is vital to have an informative and meaningful dialogue with CSOs, governments, parliament, industries, Academia, and other related stakeholders on how best extractive sectors contribute to realising competitiveness and industrialisation for human development.

To address the above, the tagline for Jukwaa La Uziduaji 2022 is Positioning the Extractive sector in Realizing Competitiveness and Industrialization for Human Development.” With a purpose to create a sustainable model for growth fuelled by civil society’s effective engagements in efforts to achieve Tanzania’s development vision (human development been the goal).

What are Jukwaa la Uziduaji 2022 dialogues targeting?

1. Critical Minerals and energy transition in Tanzania: Building a just transition and securing lasting socio-economic benefit.

Firm reductions in greenhouse gas emissions are needed to address the climate crisis and achieve the Paris Agreement targets of net zero by 2050. At the national level, Tanzania’s debate over energy transition and its implications for the country has stalled. Moreover, the potential contribution that critical minerals could make to Tanzania’s economic development in the energy transition context is well known in some circles, but it has not received much attention.
Understanding the energy transition concepts and what it means for Tanzania is limited, and dialogue on Tanzania’s participation in the just energy transition is low. On the other hand, the so-called critical minerals are yet to be identified. This could be due to a lack of public understanding of some of these minerals’ strategic, essential nature and role in defining the global future.
Civil society in Tanzania has played a significant role in shaping the extractive and development discourse. Unfortunately, society’s knowledge and engagement in the energy transition is limited, and work on critical minerals is adequate. To enable the extractive industry stakeholders in Tanzania to participate in the discussion of critical minerals and energy transition, it is vital to utilise platforms such as the Jukwaa la Uziduaji.

The objective of the session

This dialogue session aims to increase knowledge and understanding of the critical minerals and just energy transition and how Tanzania can build resilience and secure lasting benefit from its minerals.

Questions to ponder

  • How can we ensure that everyone in the community has the same understanding of just energy transition and critical minerals (CM)?
  • How far are we willing to go to capture critical minerals world demand and the current investment boom in Tanzania?
  • How can we have a fiscal regime that captures critical minerals for the energy transition while ensuring its implementation?

2. Geopolitics of the extractive sector: How can Africa leverage its potential and manage country expectations?

The agenda 2063 places the extractive sector at the heart of Africa’s structural (industrial) transformation, whereby countries’ policy priorities to harness their natural resource potential are paramount. This structural transformation is needed to ensure socio-economic development, further improving Africans’ well-being. It depends on solid regional integration, effective management, and utilisation of African natural resources, particularly the extractive sector.

Remarkably, the Africa Mining Vision as a continental flagship framework calls for effective management of Africa’s natural resources for Africa’s development and structural transformation. The vision includes a knowledge-driven African mining sector, an integrated single African market, research and development and mutually beneficial partnerships between the state, the private sector, civil society, local communities, and other stakeholders.

In line with the above and with the recent discovery of the minerals in Africa that are said to be critical in facilitating the just transition to green energy technologies, it is a prime time for Africans to critically discuss and review the regional position and frameworks that govern the natural resources and partnership between states. The focus should be more on identifying challenges from the existing frameworks/mechanism that countries should address to stimulate their extractive sector for sustainable development outcomes, where possible, having a well-defined role of the regional integration bodies such as the Africa Union (AU), South Africa Development Corporations (SADC) and East Africa Community (EAC) in supporting ongoing reforms.

Subsequently, East African partner states face significant governance challenges, yet no regional framework or approach governing the extractive sector exists. The EAC’s regional efforts to promote investment in the extractive and mineral processing industries face several challenges, including a lack of comprehensive information on the region’s mineral resource potential and weak regulatory frameworks and policies. There is a need for a regional framework/strategy for partner states’ market integration in the entire extractive value chain (mostly on value addition activities).

The Objectives of this session

  • To dialogue on key identified challenges of the existing regional frameworks/initiative in the extractive sector (Gap analysis).
  • To critically discuss the potentiality of the partner states and control mechanisms for an integrated single market economy.

Questions to Ponder

  • How does resource wealth affect African domestic political systems?
  • How do African domestic political dynamics affect policy choices?

3. From transparency to enhanced accountability in the extractive sector: Lessons for/from EITI process in Tanzania.

Tanzania’s accession to the Extractive Industries Transparency Initiative (EITI) in 2012 demonstrated its commitment to progressively transforming the sector and contributing to sustainable development. The government has been embarking on a series of reforms for 20 years to increase the gift of the industry to economic growth. While plausible achievements have been reported, there is room for further reforms. Recent validation reports revealed meaningful progress but pointed to prevailing gaps in contract transparency, beneficial ownership, and systemic disclosures. The session provides a unique opportunity for learning about a country’s trajectory to inform effective extractive sector governance pathways in the African context.

The objectives of the session

  • The overall objective of the session is to track and learn from the progress of extractive sector governance in Tanzania based on the periodic EITI member countries’ performance ratings.
  • To enhance CSOs’ engagement in the EITI-related process and accountability mechanism.

4. Permanent Sovereignty and investment: How can Tanzania balance optimisation of government revenues and attraction of investments?

A competitive fiscal regime should be measured on whether the fiscal authority is neutral, economically efficient, stable, transparent, clear, and simple, plus how much it encompasses equity and sharing of risk. While attaining a balance between revenue maximisation and investment attraction is not easy, it is imperative that fiscal reforms not only affect the country’s interests but also allow the investors to recoup their costs and profit from their investments. Instituting fiscal reforms for political expediency and motivation can be disruptive and should be avoided. Thus, it is vital to have an informative and meaningful dialogue with technocrats, CSOs, and decision-makers on the same.

The objective of the session

This session will focus on enhancing a multi-stakeholder dialogue on how Tanzania can strike a balance between optimisation of government revenues and attraction of investment, the implications of Natural resources, Permanent Sovereignty to the economy, sustaining competitiveness and other governance issues as a prerequisite for achieving developmental outcomes is vital to be discussed.

Questions to ponder

  • Is the current mining fiscal regime adequate to secure Tanzania’s interest and attraction of investment and sustain competitiveness?
  • Breaking from the past, what are the government’s vision and strategy to ensure the interest of Tanzanians are secured and attained in promptly oil and gas projects (LNG and EACOP precisely)
  • We are lagging in implementing oil and gas projects given their prior timeframe; how does the government plan to manage citizens’ expectations? And sustain competitiveness with countries like Mozambique

5. Community Vulnerability in the extractive sector: Human rights and access to justice

Most studies revealed that communities that live in the areas that are occupied or adjacent to the extractive activities seldomly benefit from the proceeds industries. Most of them live in abject poverty, and women notably bear the most significant risk of the negative social, economic, and environmental impacts of extractive activities in their communities¹.

It has been argued that instead of mining/extractive industries uplifting the socio-economic poverty of many surrounding communities from poverty, these industries have continued to subject them to socio-economic vulnerability and abject poverty. This includes loss of land, environmental degradation, food insecurity, social disruption, forced evictions, unfair compensation, and domestic violence.

Despite violating human rights in extractive industries, most local communities surrounding extractive sectors are unaware of the judicial and quasi-judicial grievance mechanisms to access their remedies. For state-based grievance mechanism is also a barrier for the victims of human rights to access remedies due to its efficiency, availability, and effectiveness. The barrier to accessing the grievance mechanism may lie in restrictions on who can bring a complaint; or in restrictions on the range of companies against which a complaint can be brought and the means of communicating those complaints to the local communities.

The objective of the Session

This dialogue session aims to raise awareness of human rights issues and access to remedies.

Questions to ponder

  • What are grievance mechanisms and their types?
  • To what extent are the community aware of their rights and remedies in case of their rights violated?
  • What is the traditional community grievance mechanism? Do we have a conventional community grievance handling mechanism in Tanzania? If yes, to what extent does this mechanism fruitful to the community in accessing justice?
  • Do we have NAP -BHR to address the possible remedies in case the community’s rights are violated?
  • Do we have resettlement guidelines for the community compensation, especially when their land is taken? If so, why still are local communities dissatisfied with the compensation?
  • Does the extractive industry have human rights due diligence in their operations?

6. Gender and Extractive: What is an Ideal framework?

In the Extractive Sector, the progressive economic transformation gaps remain in that women’s participation and representation remain limited in the sector’s value chain. Women face barriers such as lack of capital to engage in artisanal mining, inadequate capacity to negotiate for better deals in the industry, sexual harassment, and discrimination during employment. Their participation and control of essential segments of the extractive value chain, such as leadership and shares in Medium and large-scale extraction, are limited.

The sector is expected to drive economic growth. However, it has only taken on board a few women and youths in the supply chain. This is due to the enormous capital required for initial investment and the patriarchal nature of the sector, making women not benefit in the same manner as men, increasing gender inequalities. Therefore, to ensure that women are not left behind and lose a lot from extractive operations, their participation and benefit sharing across diverse groups need to be debated to intensify knowledge and advocacy to promote women and other vulnerable groups in the extractive sector value chain in Tanzania. This session will explore interlinkages between gender-related development priorities and investments in Tanzania and recommend capacity, policy and legal reforms that will allow influential women’s participation and representation within the extractive sector.

The objectives of the Session

  • To discuss the ideal Interlinkages frameworks between gender-related development priorities and investments.
  • To brainstorm on the recommended ideal legal framework reforms that allow women’s participation and representation in the Extractive Sector.

 ¹GAGGA,2018 The Impact of extractive Industry on Land, Environment and Women’s rights on East Africa.

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