Investment in the Mining Sector: Revisiting the Challenges and Prospects in Tanzania

Abstract

This article analyses the legal and regulatory frameworks regulating investment in the mining sector. The article notes that the Tanzanian mining sector has undergone various policy and legislative developments geared towards ensuring that the mining sector contributes greatly to national development. This article finds challenges in creating an investment-enabling environment as stipulated in the Mineral Policy 2009. The article advances the argument that Tanzania’s mining legal regime poses various challenges which affect the government’s ability to strike a balance between its interests to maximise revenue and protect the interests of the investors. In that regard, the article concludes that there is a need for amendments to essential laws governing mining investments in Tanzania to ensure that the rules align with Tanzania’s contractual commitments with the investors. As such, it recommends that the legislative changes to ensure the balance between the need to maximise benefits from natural resources and the protection of investors following the obligations that Tanzania has freely agreed to under international agreements cannot be overemphasised.