The Citizen (Dar es Salaam)
5 September 2008
Former East African Community employees stage a sit-in at the StHouse main entrance in Dar es Salaam yesterday. They were seeking audience with President Jakaya Kikwete over their terminal benefits claims. PHOTO/SALHIM SHAO
The Government has been urged to split the unwieldy Ministry of Energy and Minerals to be able to get the best out of the two vast and distinct sectors.
A top economist, Dr Semboja Haji, who made the call in Dar es Salaam, said that part of the solution to the numerous problems facing the mining sector would be the establishment by President Jakaya Kikwete of a special mining ministry, detaching it from the energy portfolio.
This, he added, would enable improve efficiency and lead to prudent management of the abundant mining resources in various parts of the country. But contacted for comment, the deputy Minister for Energy and Minerals, Mr Adam Malima, disagreed with Dr Haji's call for the separation of the energy and mineral sectors.
"There is no evidence whatsoever to show that the ministry is overwhelmed by its responsibilities. This ministry is as efficient as any others in the Government. Maybe, Dr Semboja should give real examples to substantiate his case," Mr Malima told The Citizen by telephone. He added: "People are entitled to their freedom to express their views and I respect that. But putting mining and energy together in one ministry does not reduce efficiency.
Both sectors have departments and well-trained staff that ensure the smooth running of their various areas." Dr Haji, of the Economic Research Bureau (ERB) of the University of Dar es Salaam, said the mining sector review being undertaken should clearly state a case for the need to set up effective institutions to own and monitor developments in the sector.
Currently, the ministry, which encompasses the huge sectors of Energy and Minerals, is headed by Mr William Ngeleja, who has since his appointment in a Cabinet reshuffle last February, been grappling with the problems of poor contracts with mining firms and electric power producers that he inherited from his predecessor.
Speaking in an exclusive interview with The Citizen, Dr Haji said: "If the aim is to fully develop the mining sector, then there is no way we can combine the huge, sensitive, and beneficial mining activities with those of energy in one ministry."
The economist said the Government had yet to demonstrate serious commitment to the development of the mining sector to exploit the country's rich deposits for the benefit of its citizens.
This would not be possible and, therefore, no tangible results should be expected from those charged with the management of the sector unless the mining industry was separated from mining.
Though he supported the ongoing review of the policies and laws governing the mining sector, Dr Semboja said the Government was to blame for the country's failure to fully benefit despite being richly endowed with mineral wealth. He blamed the shortcomings on poor implementation of policies and strategies.
"I was among the architects of the mining and investment policies and strategies. They are very relevant but since a policy is required to be operational for 10 years before being reviewed, it is high time this was done," he said.
The current policies, he added, spelt out the need to give Tanzanians special incentives while opening up the mining sector to foreign investors.
He posed: "With this in mind, is it true that we do not have enough money to set up a plant to polish gold right from the soils of Tanzania?"
The Government could not blame could blame experts from the World Bank, IMF and their local counterparts for the sector's woes without reviewing its implementation record and bottlenecks.
The World Bank vice-president for the Africa region, Ms Obiageli Ezekwesili, had earlier in the week cited lack of transparency and poor contract negotiations as the reasons for the poor performance by Tanzania's mining sector.
The World Bank, she added, had supported mining sector reforms in Tanzania, in particular, and Africa, in general, "with good intentions".
Replying to a question by The Citizen during a videoconference from Accra, Ms Ezekwesili said the bank hoped to see a more conducive business environment created in Africa. The countries had themselves had a duty to ensure the "implementation is transparent, responsible and productive".
"Mining legislation and policy review is going on in Tanzania and the bank is fully supporting it," said Ms Ezekwesili from Accra, where she is attending the ongoing Aid Effectiveness Conference.
The World Bank, she said, sponsored the introduction of the Investment Act 1997 and the Mining Act 1998, which have failed to enable Tanzania to get a fair return on its minerals.
The shortcomings include generous incentives such as tax holidays and tax waivers to the mining multinationals.
And following a public outcry, the Government last year initiated a review of the mining laws and specific contracts entered into with foreign firms to be completed by the end of next year. This should lead to the revamping of the State Mining Company (Stamico) to enable it get more directly involved in the trade.
Dr Semboja said Stamico should be given the legal mandate to take charge of all the areas that contain minerals.
"When a foreigner comes to invest in the mining sector, Stamico should be contacted and be given a certain percentage of the shares. In that way, Tanzanians will own a stake in the mining sector," he said.
Ms Ezekwesili said the World Bank had supported artisanal mining programmes in Tanzania to enable small-scale miners to be more effective in the sector.
The Accra meeting is a follow-up of the Paris Agenda Conference of 2005 and aimed at looking into ways of ensuring that aid to Africa is more effectively used.
Be the first to Write a Comment!
Copyright © 2008 The Citizen. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
