Jukwaa la Uziduaji

Tanzania extractive industries conference –Jukwaa La Uziduaji is the principle space for relevant stakeholders to critically discuss, exchange experiences, and to learn from one another to advance transparency and accountability agendas in extractive industries in Tanzania. The space brings together participants from the government, companies, Civil Society Organizations (CCSOs), academia, Media, local communities and other like-minded individuals from national, regional and international level. For the First time, the CSO-Tanzania Extractive Industries Conference was organized in 2011, whereby HakiRasilimali members led by the Interfaith Standing Committee with other like-minded organizations sat in Arusha to discuss various concerns affecting mining communities as a result of mining operations in Tanzania. This was followed by other conferences in 2012, 2013, 2014, 2016, 2017 and, 2018:- all aiming at contributing to on-going debates on status, trends, and dynamics of the Tanzania Extractive sector.

Jukwaa La Uziduaji (as branding name officially launched by Hon. Angellah Kairuki the Minister of Minerals) is a move towards realizing the vision and the role of different stakeholder’s due diligence in the contribution towards positive social and economic development in the country’s extractive sector as – realised in the country’s five year development plan 2016/17-2020/21 (arising from vision 2025). The plan envisages a system that is grounded in “Nurturing industrialisation for economic transformation & Human development”. Thus, the space also being critical as it fosters and strengthens effective implementation of different policies, including prioritization and integration of existing interventions in the sector, and accelerating broad based discussion on inclusive economic growth for poverty alleviation in Tanzania.

Key Points

(1) Resources of the country are primarily for the benefit of the people of Tanzania in accordance with the constitution. Hence citizens are the ultimate holders of their natural resources and hence should be actively involved in the entire extractive value chain from the decision to extract to the decision on how the revenues will be spent. And the government of Tanzania shall, therefore, remain the custodian acting on behalf of the people.

(2) Parliamentary oversight and independency of committees are crucial to ensuring scrutiny and providing oversight on how the executive manages natural resource wealth in Tanzania.

(3) It is imperious that policy and law enforcement measures will be accompanied by the provision of access to accurate information to Tanzanians and relevant stakeholders like CSOs and private organizations at the right time.

(4) CSOs in the country need to continue to educate citizens and communities about issues related to their development and well-being, aimed at increasing the power and public voice. This role should not be neglected or disrespected, as it contributes to creating a community with understanding and the power to question various aspects of current and private development.

(5) The government needs to look beyond revenue accrued from the extractives and focus on employment opportunities, social benefits, health and make the industry a catalyst to the development of other economic sectors.

THE RATIONALE FOR JUKWAA LA UZIDUAJI

Evidently, Tanzania has not been able, over the years, to turn its natural resources into broad-based and equitable socio-economic development and transformation. Natural resource governance requires robust institutional, legal and policy frameworks for better management of natural resources. These elements are gradually emerging, but have not sufficiently developed to guarantee the expected competencies.

The sector is also associated with extensive social, economic and environmental impact, this could only improve when the government and companies involve stakeholders with a vested interest, such as local communities, Faith-based organizations (Interfaith standing committee), the Parliament, academia, Media among in their planning and decision making throughout the value chain. This is particularly true in the extractive sector in Tanzania as it is associated with extensive social, economic and environmental impacts.

THEMATIC AREA 1: ECONOMIC AND BUSINESS ENVIRONMENT:

(a) Political dynamics in the country:
Investment in the mining, oil and gas in Tanzania is seen as an opportunity for economic transformation and human development towards poverty alleviation whereas for the multinationals it is all about maximising profits. As of recent, the opportunity has been backed by government desire to review the legal framework, whereby new laws, regulations and guidelines have been and continue to be developed and amended. However the practice is faced with challenges of law incoherent, implementation gaps and inadequate institutional coordination and communication.

(b) Geopolitics of the extractive sector:
The development of the extractive sector in particular petroleum sub sector in East Africa, has potential for economic gains, employment opportunities and improvement of social services provisions in the block. However, there potential for risky on security, social unrest and Environmental concerns as the region advances its boldness on the subject matter. Boundary disputes between the DR. Congo and neighbouring countries (Angola and Uganda) have emerged posing serious political and security threats on Lake Albertine. On the other side. The Uganda–Tanzania Crude Oil Pipeline (UTCOP), also known as the East African Crude Oil Pipeline (EACOP), under construction and intended to transport crude oil from Uganda’s oil fields to the Port of Tanga, Tanzania on the Indian Ocean. The pipeline will cross fresh water bodies, terrestrial landscapes, protected environments and has a huge potential to cause social challenges. Methane gas extraction in Rwanda and Burundi from Lake Kivu is rapidly taking shape. Given the above geopolitics of Hydrocarbons in the Great Lakes region, appropriate and coordinated efforts in governance, Oil spill contingency plan, waste management plan, human rights guidelines, security threats, environmental protections and safeguarding nature to limit negative impacts and social rights are critical and shouldn’t be taken for granted.

Key message: National and Regional collaboration with all stakeholders are key to making Tanzania and the East African Extractive Industry successful.


THEMATIC AREA 2: EMERGING AND CROSS-CUTTING ISSUES IN THE EXTRACTIVE SECTOR IN TANZANIA:

(a) ASM in Tanzania: Artisanal and Small-scale mining activities has for many years been considered, theoretically, as the gate-way for community development. Especially in communities where there are deposits of mineral resources. However, the sector has faced political neglect with poor or no policy and operational structures to support the assumed socio-economic vibrancy.

(b) Gender and Extractives: Is it a missing discussion? Extractive operations have legal, social, economic and environmental impacts on communities which affect women and men differently. Experientially, women and girls are exposed to greater risks associated with extractive operations while they receive little or no benefit. Men appear to be the sole recipients of the benefits. The benefits to men have realised through employment and property compensation while the costs, such as family or social disruption and environmental degradation, are shouldered by women”. Some of the negative effects of extractive industries on women and girls include: In Tanzania, women have been seen to participate directly as service providers rather than extractive operators.

(c) Emerging issues on the ground in extractive-FDI receiving areas: Health and Environment: Burning of fossil fuels is responsible for about one-half of the rise in average global temperatures and close to one-third of sea level rise, resulting from the carbon dioxide and methane emissions from mining, oil and gas production as well as their extraction and production processes. This means that more heat means more energy, which increases the power of tropical storms and the amount of water vapor dumped upon nearby coastlines. At the same time, higher sea levels mean more dangerous storm surges. Experts are now thinking that global warming could be intensifying storms and climate impacts on the health of the biodiversity. Despite the global observation, mining, oil and gas production in Tanzania is seen as a drive towards economic development thus, what do the impact and emerging discussion on climate change impact developing countries such as Tanzania?

ThEMATIC OBJECTIVES:

(1) To assess factors contributing to the cycle of poverty among artisanal and small-scale mining communities and subsequent environmental consequences.

(2) To discuss the engagement and contribution of women in the extractive industries value chain. With an expectation to increased community participation, particularly women and vulnerable groups, in consultations, dialogue, negotiations, and advocacy to advance their rights related to the extractive industries.

(3) To understand the Government targets to reduce carbon emissions and the expansion of alternatives such as renewable energy will impact the economics of extraction of fossil fuels, limiting the potential economic benefits.

THEMATIC AREA 3: ACCESS TO INFORMATION AND CONTRACT TRANSPARENCY

Deals in mining, oil and gas sectors may be worth billions of dollars over a span of time. Yet in most resource-rich countries like Tanzania, there is surprisingly little systemic and systematic guidance for ensuring transparency in allocating and managing the rights to explore and exploit natural resources. For a while now, contract disclosure for the exploration and exploitation of natural resources has remained CRITICAL and an unreciprocated mystery. Being an EITI compliant country since 2012, Tanzania’s implementation of the EITI Standard and the TEITA Act of 2015 have so far been important tools enabling stakeholders, especially policy makers to oversee governments’ management of extractive contracts to enhance transparency and accountability.

Thematic Objective:
To inform the conference about the importance of moving beyond contract discloses to open contracting. Open contracting processes and procedures in the extractive sector empower “MWANANCHI” to fully participate in the decision-making processes positively. This will have an impact on revenues generated, subsequently impacting in their livelihood. This can succeed only when the investment plans and government businesses are carried out openly.

OVERALL EXPECTED RESULTS

(1) Informed policy dialogues and concrete interventions for increased and effective participation of HakiRasilimali members and stakeholders in the sector.

(2) Proactive engagement of duty bearers to disclose reports, resource contracts and beneficial ownership of companies licensed to carry activities in Tanzania.

(3) Enhanced participation of civil society organizations in ensuring accountability mechanisms for extractive industries in alignment with regional and international frameworks.

(4) Strengthen synergy among stakeholders for effective governance and management of natural resources in Tanzania.