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1. Equitable Sharing of Mining Profits: The Best Deal for Tanzania?

Author:
Thomas Scurfield
Publication Date:
09-2023
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Tanzania’s unique approach to mining taxation, described as an equitable sharing of economic benefits between government and mining company according to a negotiated split, could leave the country shortchanged. Tanzanian citizens have access to the terms of only one profit-sharing deal, a 50-50 framework agreement for Barrick’s gold mines. The rest remain unpublished, despite laws that require the government to disclose deal terms. The Barrick deal predicates government revenues more heavily on mine profitability than a more typical regime, making these revenues more uncertain. This structure also increases the risk that companies may seek to avoid tax payments. Negotiating the split on a project-by-project basis, without any legal guardrails on the approach, increases the risks of corruption and unfavorable deal terms. The Tanzanian government could eliminate these risks by borrowing provisions from other countries that also require a specific government share of mine profits but take a different approach. However, unless the government has identified benefits from its current sharing mechanism that a more typical regime does not offer, it should not pursue a sharing mechanism and instead focus on improving the underlying regime, such as increasing its flexibility with regards to profits and reducing tax avoidance risks. To gain more trust from citizens, Tanzania’s government should explain how the mechanism works in existing deals.
Topic:
Government, Natural Resources, Tax Systems, Mining, Transparency, Contracts, and Energy Transition
Political Geography:
Africa and Tanzania

2. Characterisation of Danish agricultural investments in Tanzania and Uganda

Author:
Rikke Broegaard, Helle Monk Ravnborg, Evelyne Lazaro, Teddy Nakanwagi, and David Tumusiime
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This DIIS Working Paper presents key characteristics of each of the six cases including main crop focus, size and business model, as well as types of investors, their investment approach and the factors that motivate them. It also presents the different objectives that the investors have expressed wanting to achieve. As most of the investments involve private funds, it is reasonable to expect that one important goal is to ensure a viable economy in the investment. However, in addition to an economically sound investment, all of the investors behind these six cases have ambitions regarding ways in which they see themselves - through the investment - as contributors towards a positive societal development in the area of the investment. Thus, the paper presents the different ways the investors see their investments contributing to development in the area. The paper is based on interviews with the investors and field work in the areas of investments.
Topic:
Agriculture, Development, Environment, Poverty, Natural Resources, Food, Inequality, Investment, and Land Rights
Political Geography:
Europe, Denmark, Tanzania, and Africa

3. Surplus or Shortage? The Challenge of Setting a Domestic Supply Obligation for Tanzania’s Offshore Gas BRIEFING20 JULY 2021

Author:
David Manley and Thomas Scurfield
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
One of the priorities of Tanzania’s new president is negotiating a way forward for the country’s long-planned offshore gas project. A key issue in this negotiation is the amount of gas that the government will take in the form of a domestic supply obligation (DSO). To increase the country’s energy supply, it wants a larger DSO than the currently agreed amount of around 8.5 percent of reserves. This report analyzes the implications of a larger DSO for meeting Tanzania’s energy needs, for the offshore project and the government revenues it can generate. It builds on previous NRGI analyses by the authors.
Topic:
Energy Policy, Natural Resources, Gas, Regulation, Legislation, Tax Systems, Commodities, and Revenue Management
Political Geography:
Africa and Tanzania

4. 2021 Resource Governance Index

Author:
Natural Resource Governance Institute
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Decisions about how the oil, gas and mining sectors are governed determine the wellbeing of the billion people living in poverty in resource-rich countries. Where policies and practices ensure informed, inclusive and accountable decision making, natural resources can enable fair, prosperous and sustainable societies, rather than undermine them. The climate crisis, the coronavirus pandemic and dramatic changes in global energy markets have increased the stakes of good governance. Complex decisions about how to enable the political and economic adaptations necessary for a managed phaseout of fossil fuels and responsible increase in production of transition minerals sit at the heart of this dual crisis. Governance of the oil, gas and mining sectors will play a central role in the transition away from fossil fuels and the return to progress against poverty. The Natural Resource Governance Institute (NRGI) produces the Resource Governance Index (RGI) as a diagnostic tool to measure the governance of oil, gas, and mining sectors in select countries and to highlight opportunities for policy and practice reforms at the global, regional and country levels. The 2021 RGI assesses the governance of extractive sectors in 18 countries, including both established mineral and hydrocarbon producers, as well as new and prospective entrants to natural resource production.
Topic:
Oil, Natural Resources, Governance, Gas, Mining, Sustainability, and Inclusion
Political Geography:
Uganda, Africa, Central Asia, Middle East, Mongolia, Colombia, South America, Azerbaijan, Lebanon, Tanzania, Mexico, Senegal, Nigeria, Morocco, Qatar, Tunisia, Peru, Ghana, Guinea, Guyana, and Democratic Republic of Congo

5. A World in Transition: the Rise of Populism and the Fall of Multilateralism? (Full Issue)

Author:
Emily E. Fox, Richard Aidoo, Marten Brienen, Carlos de la Torre, Alexander B. Makulilo, and Joel Martinez
Publication Date:
04-2017
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
For the Journal’s 19th issue, we explore modern populism across the world. Richard Aidoo looks at the landscape of anti-Chinese populism in the context of Africa’s resource scramble, while Alexander B. Makulilo takes an in depth look at the siren song of populism in Tanzania. Marten Brienen and Carlos de la Torre hone in on populism in Latin America, exploring its early 21st Century evolution and its relationship with democracy respectively. Additionally, the Journal is proud to publish an interview with Ron Boquier and Raul Castillo, both of whom are active supporters of human rights in Venezuela, a county was a harbinger of recent global populist sentiment. Outgoing editor Joel Martinez speaks with Boquier and Castillo on the roles of the United Nations and United States in helping to advance democratic reform in the country.
Topic:
International Relations, Human Rights, Politics, Natural Resources, Law, Democracy, Populism, Multilateralism, and Capital Flows
Political Geography:
Africa, China, Asia, Latin America, and Tanzania

6. Fishermen’s wives: On the cultural origins of violence against women

Author:
Vincent Leyaro, Pablo Selaya, and Neda Trifković
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We study the roots of violence against women, and propose that it partly originates in cultural norms that derive from (a) characteristics of the traditional subsistence problem in different societies, and (b) differences in the sexual division of labor for solving that problem in each society. We construct this hypothesis on economics and anthropology research showing the potential of traditional livelihoods to shape persistent cultural norms at the local level, and arguing that this concept can be extended to explain outcomes at the domestic level. We test our main hypothesis by examining differences in the incidence of domestic violence across areas with different historical livelihoods in modern-day Tanzania, where we observe a large degree of spatial variation in both attitudes and actions of violence against women. Using rich individual survey and high-resolution georeferenced data, we find systematically less violence against women in traditionally sea-fishing areas vis-à-vis traditionally lake-fishing, agricultural, and pastoralist ones. Our results are consistent with anthropological accounts of the idea that women in sea-fishing societies tend to be comparatively more independent in decision-making, and to acquire skills that are complementary to demands in non-agrarian sectors. We interpret this as evidence for direct mechanisms helping to sustain egalitarian gender norms in general, and less violence against women in particular. By exploiting sub-national variation, this research allows us to move beyond studying the socio-economic and institutional determinants of violence against women, and to analyse the formation of specific cultural traits that explain where and why some women tolerate less violence against them.
Topic:
Natural Resources, Culture, Women, Violence, and Fishing
Political Geography:
Africa and Tanzania

7. How Should Donors Respond to Resource Windfalls in Poor Countries?

Author:
Alan Gelb, Anton Dobronogov, and Fernando Brant Saldanha
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Natural resources are being discovered in more countries, both rich and poor. Many of the new and aspiring resource exporters are low-income countries that are still receiving substantial levels of foreign aid. Resource discoveries open up enormous opportunities, but also expose producing countries to huge trade and fiscal shocks from volatile commodity markets if their exports are highly concentrated. A large literature on the "resource curse" shows that these are damaging unless countries manage to cushion the effects through countercyclical policy. It also shows that the countries least likely to do so successfully are those with weaker institutions, and these are most likely to remain as clients of the aid system. This paper considers the question of how donors should respond to their clients' potential windfalls. It discusses several ways in which the focus and nature of foreign aid programs will need to change, including the level of financial assistance. The paper develops some ideas on how a donor like the International Development Association might structure its program of financial transfers to mitigate volatility. The paper outlines ways in which the International Development Association could use hedging instruments to vary disbursements while still working within a framework of country allocations that are not contingent on oil prices. Simulations suggest that the International Development Association could be structured to provide a larger degree of insurance if it is calibrated to hedge against large declines in resource prices. These suggestions are intended to complement other mechanisms, including self-insurance using Sovereign Wealth Funds (where possible) and the facilities of the International Monetary Fund.
Topic:
Economics, International Trade and Finance, Natural Resources, and Foreign Aid
Political Geography:
Uganda, Kenya, Tanzania, and Ghana

8. Tanzania and Statoil: What Does the Leaked Agreement Mean for Citizens?

Author:
David Manley and Thomas Lassourd
Publication Date:
08-2014
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The leak in July 2014 of an important addendum to a production sharing agreement (PSA) between Norwegian national oil company Statoil and the government of Tanzania has ignited a debate on whether Tanzania “got a good deal” from granting these extraction rights for a block now expected to produce large amounts of commercial natural gas. The debate demonstrates a public appetite for explanations from the government on the country’s management of its nascent oil and gas industry. Potentially at stake are billions of dollars of potential revenues that could boost socio-economic development in Tanzania if it becomes possible to extract these gas resources. An NRGI financial analysis suggests that the deal is not out of line with international standards for a country that had no proven offshore reserves of natural gas at the time when the original contract was signed. Thus claims that the addendum is on its face grossly unfair to Tanzania appear to be premature. The outgoing managing director of Tanzania’s national oil company TPDC gave an estimate of the government’s take of 61 percent, a figure that our own model determined to be plausible under a reasonable set of assumptions. There are some caveats to this result which we explain in the body of the main briefing.
Topic:
Corruption, Natural Resources, Tax Systems, Accountability, and Revenue Management
Political Geography:
Africa, Tanzania, and Sub-Saharan Africa