Extractive industry governance for sustainable development

 

THE ISSUE
Tanzania is blessed with a vast amount of natural resources including large reserves of gas and minerals. Recent growth in the mining sector has outpaced the rest of the economy while major offshore gas discoveries have massively increased investor appetite in the extractive industry, with the potential seen as a possible catalyst to propel Tanzania towards its development goals.

The rapid expansion of the extractive industries and the large untapped reserves in Tanzania hold great promise, however, they also present risks and challenges to the human development of the country. In the short run, new discoveries may lead to displacement of people from their settlements. Furthermore, the majority of Tanzanians employed in the extractive industries are artisanal and small-scale miners (ASM). Employment in this sector is informal, hazardous and unproductive. 

Transforming the extractive industry into a well-governed, equitable and inclusive industry will contribute to Tanzania’s development goals. This challenge requires well thought-out and evidence-based interventions based on the principles of open, democratic and transparent governance, as well as formalization of ASM.  

THE RESPONSE
The goal of this project is to support the Government of Tanzania in improving the governance of the extractive industry through establishing and strengthening existing institutional frameworks, policies and regulations as a means of achieving a sustainable and inclusive socio-economic transformation. 

The project will seek to improve the well-being and strengthen the inclusion of communities involved with extractive industries. This will be achieved by focussing on three major areas of intervention, namely improving employment opportunities and levels of income, improving access to social services and promoting entrepreneurialism. 

These outcomes will be pursued through activities strengthening the capacities of national, regional and local authorities for policy development, enforcement and planning; promoting strengthened collection and effective use of revenues from extractive industries; improving value chains and access to markets; enhancing skills matching between local workers and extractive companies; and promoting the formalization of the extractive sector. 

MORE INFO
Abbas Kitogo, Practice Specialist (Climate Change & Energy)
abbas.kitogo@undp.org

Find out more about the project by downloaing the project fact sheet. 

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