Tanzania World Bank Involvement

Tanzania World Bank Involvement

:From 1994-2000, IDA supported mining sector technical assistance in Tanzania in the areas of mining legislation and regulations, mining fiscal regime, environmental policies and enforcement, divestiture of state-owned enterprises, and strengthening institutional capacity. The foreign direct investment in the mining sector increased to an average of US$250 million per year in 2001-08 from less than US$10 million per year in 1990-99. However, as the fiscal regime was designed to attract investment into a declining, high-risk sector, mining tax revenues were only 4 percent of total fiscal revenues in 2007, and several mining communities were not satisfied with their benefits from the mining operations. Since 2009, IDA has been supporting the government to strengthen its capacity to manage the mineral sector to improve the socioeconomic impacts of mining. In 2010, the government passed a new mining law that increases the rate of royalty paid on minerals from 3 to 4 percent and allows for participation by the government in all future mining projects.