Good morning!The Chanzo is here with a rundown of major news stories reported in Tanzania over the weekend.
Tanzania’s foreign affairs ministry remains a hot seat but stability matters
The heart of the government. This is how President Samia Suluhu described the Ministry of Foreign Affairs on July 26, 2024, during the swear-in session of new appointees following a mini-reshuffle of the cabinet.
The reshuffle saw the Former Minister of Foreign Affairs and East African Cooperation, January Makamba dropped together with his two deputies. Ambassador Mahmoud Thabit Kombo was sworn in Friday, July 26, 2024, as a new minister with two deputy ministers Cosato David Chumi and Dennis Lazaro Londo.
Unlike the previous administrations, the Ministry has not had any Minister who has stayed in the ministry for more than a year since President Samia Suluhu came into power marking a historically highest turnover rate. Between 2021 and 2024, five ministers have already served the Ministry something that analysts have warned might end up hurting the Ministry’s efficiency.
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Tanzania agrees to pay Indiana Resources sh. 237 billion over ICSID disputes
Tanzania and an Australian-based company Indiana Resources Limited have settled for USD 90 million equivalent to Sh. 237 Billion for the unlawful expropriation of the Ntaka Hill Nickel Project, a nickel sulfide project in Lindi. So far Tanzania has already paid USD 35 Million.
This was revealed today July 29, 2024, in a statement by Indiana Resources which explains that the company has taken the offer from Tanzania which is less than the original amount awarded by the International Centre for Settlement of Investment Disputes (ICSID) which was about USD 109 Million to save time and cost in pursuing annulment and/or arbitration proceedings and enforcement activities.
Tanzania will be required to complete the remaining amount in two installments, USD 25 Million by October 25, 2024, and USD 30 Million by March 30, 2025.
The disputes between Indiana Resources and Tanzania emanate from the changes in the Tanzania mining laws in 2017 and 2018. On January 10, 2018, through its (Mineral Rights) Regulations 2018, the country declared that all retention licenses issued before the date of publication of the Regulations were canceled and shall cease to have legal effect.
This affected the Indiana Resources retention license for the Ntaka Hill Nickel Project, exploration for and development of nickel sulphide deposits in Lindi, Southern Tanzania with the company estimating a total value of up to USD 217 Million.
Retention licenses allowed companies to own some areas with minerals without developing in cases there were technical constraints, adverse market conditions, or other economic factors. Tanzania’s government had argued that the practice was exploitative as companies would hold large pieces of areas, adding them to their books without developing or allowing for the country to receive any benefit.
The haste nature of which regulation was implemented ended up costing the country significantly in arbitration as many companies such as Indiana Resources argued that they had suffered significant commercial losses due to Tanzania’s decision which equates to unlawful expropriation.
Government announces five-point strategy to respond to child kidnapping reports
The Ministry of Home Affairs announced yesterday July 28, 2024, a five-point strategy in response to the recent reports on child kidnapping and disappearance across the country.
The strategy involves cross-ministries initiatives to raise awareness on child protection which will involve the Ministry of Home Affairs, the Ministry of Constitution, the Ministry of Community Development, the President’s Office, Regional Administration, and Local Government (PO-RALG). Also, the Police will increase the intensity of patrol in various areas, and priorities will be given to any tips to the authorities regarding child protection.
Moreover, the Police will increase the pace of the investigation of the cases, as well as cases around child abuse will be fast-tracked in the justice system. This was revealed yesterday by the Press organized by the Ministry of Home Affairs regarding the incidents which have continued to dominate Tanzania’s airwave.
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Foreigners illegally using small-scale mining licenses to face the law
Minister of Minerals, Anthony Mavunde, has announced a special operation targeting small-scale mining license holders who enter into informal agreements with foreign nationals and allow them to work under their licenses.
Speaking to the press on July 28, 2024, in Dodoma, Mavunde stated that small-scale mining licenses are exclusively issued to Tanzanians per Section 8(2) of the Mining Act, Chapter 123.
“It is prohibited for license holders to bring in foreigners without formal contracts and permits as required by law. Strict actions will be taken. We will conduct a special operation through RMOs (Regional Mining Officers), and if this issue is occurring in your region to the extent that the Minister or Deputy Minister has to intervene, you will be held accountable,” emphasized Minister Mavunde.
Section 8(3) of the Mining Act, Chapter 123, clarifies that a small-scale mining license holder can only enter into an agreement with a foreign national for technical assistance not available domestically, and such agreements must be approved by the Mining Commission.
Mavunde highlighted that significant negative impacts result from not adhering to Section 8(3), including small-scale miners losing jobs, their invested capital, and developing resentment towards the government.
Additionally, Mavunde condemned fraudulent activities in the mining business and the smuggling of minerals by a few individuals, which hinder the government’s goals.
“The Ministry will continue to take strict measures against all those involved in mineral smuggling. There are untrustworthy regional officials aiding revenue losses. I will provide the Secretary-General with their names for immediate action; we cannot tolerate this,” he said.
These statements come amidst complaints from various mining areas about Chinese nationals purchasing mines without proper procedures, causing various negative effects on the local small-scale miners and the communities relying on these mines.
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