YOUTH AND RESOURCE GOVERNANCE IN EXTRACTIVE INDUSTRY

EXTRACTIVE SECTOR IN TANZANIA AND GOVERNANCE SITUATION 

Tanzania’s extractives sector is quite elaborate with active exploitation of mineral resources ranging from Tanzanite, gold, diamond, uranium and iron ore to natural gas and fossil fuel. Gold is the country’s largest non-traditional goods export. Tanzania’s gold exports increased from $1.16 billion registered in the year February 2016 to $1.46 billion (Sh3.2 trillion) in February 2017 according to Bank of Tanzania.

Over the past few years Exploration for oil and gas along the coast has also increased which has seen major oil companies in the region such as Total-France pledging to work with Tanzania’s ministry of energy to undertake exploration in four lakes Tanganyika, Eyasi, Wembere and Rukwa. Furthermore, production of natural gas from large proven reserves has started to ease Tanzania’s chronic power shortage.

According to Tanzania’s vision 2025, the extractives industry presents huge opportunities for spurring economic growth, employment and sustainable development.

However, despite being the country's leading sector in export and Foreign Direct Investment (FDI) earner, there rising concerns that the extractive industry in Tanzania has failed to spur economic growth and create new job opportunities. Although the country is endowed with huge potential of minerals all under active exploitation, its contribution of less than 1% of the country's labor force goes to show how its contribution to overall economic development is still scant.

 Amongst certain stakeholders, there is a feeling that the mining sector could be contributing much more to the national exchequer than it currently is. The legislative and legal regimes around the mining sector, it is argued, seem to lean more towards encouraging foreign investment than to promoting and safeguarding the interests of the wider Tanzanian population

The Problem

Although governments have attempted to cope with the new developments in the extractive sector through development of appropriate policy and legal frameworks, these have not had the effect of transforming it into an engine of growth that many citizens especially the majority youth expect.

More so, lack of transparency and accountability, secrecy in contracts negotiation processes ,licensing, poor management of the resettlement and compensation processes, violation of land rights and minimal public participation in major decision making processes all indicators of poor governance continue to characterise the sector . Only the government and companies (investors) have been negotiating the two sides’ benefits, but for big extent local communities who host the resources or own land where extractions take place have been not involved.

Leaders have continued to meet at high level meetings to sign protocols, treaties, memoranda, roadmaps, licences, Production sharing agreements, and action plans, detailing deeper engagement and development projects with less involvement of the youth yet any decisions made today will greatly impact on them                 

This has brought about an ongoing public debate on whether the government receives a ‘fair share’ from its extractive deals, and whether revenues are being used for the benefit of all citizens. There are also concerns over the harmful impacts of the industry on the environment.

Moreover, the fraught issue of the livelihoods of those people who have been moved from their homes and farms to give way to mining activities remain unresolved. Furthermore, there is little or no evidence to show that the increase in the extraction of the country’s natural resources has actually contributed to a reduction in poverty levels.

Door of Hope to Women and Youth Tanzania (DHWYT)  intends to empower youth to effectively participate and promote good governance in Tanzania’s extractives sector. The overall objective of the proposed project is to empower youth through awareness raising and capacity building to demand for transparency, accountability and public participation in Tanzania’s extractives sector.

Tanzania’s population comprises mostly young people, 65% according to the 2012 population census. The youth thus stand to benefit the most if revenues from the extractives industry are well allocated. Extractives revenues can solve problems like chronic unemployment and provide better quality education and health facilities for young people. Conversely, if these revenues are not well planned for, the youth, as the future generation, will suffer the most. They will also suffer other social, economic and political consequences that often come with the mismanagement of extractives resources a case in point  oil in Africa- For instance increased poverty and income inequality, corruption and a general break down of government systems and the rise of an individualistic state where every citizen struggles on his or her own to survive.

It is thus important that the youth use their huge numbers to speak now and avert a looming resource governance crisis in Tanzania. Youth, in particular, are a very  influential voice not just to fellow young people but also to older people who look up to them for more informed points of view on different issues.

For the Tanzania’s extractives sector to benefit all especially the common people the Youth who form a critical mass need to champion the demand for transparency and accountability in the sector.