Tanzania’s government a step closer to total control over natural resources
Dar es Salaam — Tanzania approved two laws that enable the government to renegotiate contracts with mining and energy companies, as the state seeks a greater share of revenue from natural resources. The bills, which deal with state sovereignty over mineral wealth and contracts containing "unconscionable terms," were approved by parliament on Monday, legislator Peter Kafumu said in a text message. The Tanzania Chamber of Minerals and Energy, the main industry lobby group that has opposed the new laws, said the implications of the bills were "vast." "There are many areas that the three bills touch on," chamber executive secretary Gerald Mturi said by phone on Tuesday from Dar es Salaam, the commercial capital. "The industry is going to be affected big time." Tanzanian President John Magufuli is overhauling the country’s mining industry as the government targets doubling its contribution to GDP to 10% by 2025. In March, he banned mineral exports and ordered an audit to identify loophol...
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