Dar es Salaam. As Tanzania is witnessing increased discoveries of natural resources, stakeholders in the extractive industry have cautioned the government to ensure inked contracts benefit the general public. 

They are of the view that partnerships and investment contracts should increase efficiency and benefit both sides; investors and the government on behalf of its people.

Their caution comes following reports that many countries blessed with abundant natural resources including oil and gas as well as minerals have failed to benefit its people due to poor supervision.

They said most countries have ultimately ended up plunging into civil war as well as endless conflicts in what is referred as resource curse.

Extractive industry stakeholders shared the caution during a workshop gathering experts in the sector organised by the Natural Resources Governance Institute (NRGI).

Repoa Executive Director, Donald Mmari said investment capital required for extraction activities is extremely huge to be afforded by most countries without involving investors.

“Investors bring in capital, while countries offer resources. We are therefore required to be careful when striking the deals in order to benefit both sides involved in the contract,” said Dr Mmari.

He said the country should see how the sector is interconnected with others and ensure investment multiple effects is realised in many other sectors.

Furthermore, he said Tanzania needs to see how to strengthen its economy using resources harvested in the extraction industry. 

“There are resources that are depleted after a few years of extraction meaning that they should be converted to other resources that will significantly contribute to the country’s economic growth before depletion,” he said.

“There are countries that have failed to properly use such resources while others have benefited, which should be a lesson to Tanzania,” he cautioned.

Natural Resources Governance Institute (NRGI) manager for East Africa, Moses Kulaba said there was a need for proper supervision of tax collection in the extractive industry.

“The sector is rapidly growing making it important for the country to increase its revenue collection in order to benefit its people,” he said.

“Climate change could adversely affect the sector’s growth, therefore placing the need for government’s preparation that will guarantee its growth and prosperity for the benefit of general public,” he added.

For his part, assistant mineral commissioner Ally Samaji said the government was putting in effort to increase citizen participation in the extractive industry.

“The move will place generated revenues in the hands of citizens instead of making them observers. We want more Tanzanians recruited in the sector and increase their understanding of what happens in order to improve efficiency,” he said. By Elizabeth Edward, The Citizen