Tanzania earns Sh1.877 trillion from extractive sector
What you need to know:
- The government has collected Sh1.877 trillion from 44 companies operating in the mining, oil, and gas sectors.
Dar es Salaam. The government has collected Sh1.877 trillion from 44 companies operating in the mining, oil, and gas sectors, with only a minor discrepancy of Sh402.41 million between reported payments and actual revenues for the financial year 2021/22.
This information was disclosed by Minerals minister Anthony Mavunde during the launch of the 14th report of the Tanzania Extractive Industries Transparency Initiative (TEITI) in Dar es Salaam on Wednesday.
Mr Mavunde revealed that the report includes data from 26 mining companies, seven companies in the oil and gas sectors, and 11 service providers within these industries.
According to the minister, the companies reported payments totalling Sh1.878 trillion to the government, resulting in a discrepancy of just 0.021 percent of the total reported revenues.
The minister emphasised that the discrepancy of Sh402 million will be closely analysed to identify the underlying causes. This analysis aims to inform both the companies and the government on corrective measures to prevent similar discrepancies in future reports.
In addition to addressing the discrepancy, Mr Mavunde highlighted that the TEITI report provides comprehensive data in line with EITI International Standards and national regulations.
The disclosed data covers various aspects including production and export statistics for minerals, oil, and natural gas, employment figures in the extractive sector, corporate social responsibility (CSR) contributions, and local participation in the sector.
TEITI Committee chairman Ludovick Utouh explained that the report’s launch is intended to make critical information accessible to citizens and stakeholders.
He encouraged the use of this data for informed discussions aimed at enhancing the contribution of the extractive sectors to Tanzania's GDP.
Dr David Mathayo, chairman of the Parliamentary Standing Committee on Energy and Minerals, praised the government's transparency in reporting revenue comparisons from the extractive sectors.
He urged Tanzanians to review and understand how these sectors impact the nation's economic growth and to use the information to offer informed opinions and advice.
The release of this report underscores Tanzania's commitment to transparency and accountability in its extractive industries, highlighting the government's efforts to ensure accurate and reliable financial reporting in the sector.
