Tanzania Mining Act of 2010 (Vain Politics)

[Kichuguu]

Kwa sasa hapa sioni mjadala wa maana; kuna mtu nalalamikia interest zake binafsi huko Tanzanietone na wala halalamikii mambo ya kitaifa. Inapofikia mtu anadai kuwa Tanzaniteone iko listed kwenye stock market ya London kwa hiyo watanzania wakanunue stocks zake huo kama vile watanzania wenyewe hawana stock market yao, unaona kabisa mtu huyu ana matatizo fulani na Tanzania. Kama wako listed London, kwa nini hao Tanzaniteone wasiwe listed Tanzania? In fact mimi nitaka kununua stocks kadhaa wakishakuwa listed Dar, siwezi kwenda kuzifuata huko London au New York, ninazitaka hapahapa Dar.

Kama nilivyoandika huko nyuma, sheria hiyo ina mapungufu yanahohitaji kujadiliwa; lakini siyo mapungufu anayopigia kelele Mheshimiwa H.S. kwa sababu sasa hivi baada ya kuwa ameweka post nyingi sana zinazojichanganya zenyewe kwenye topiki hii hihi imefikia kuwa wazi kabisa kuwa yeye ana ishu zake bianafsi kuhusiana na tanzaniteone. Kushindwa kuonyesha mahala ambapo sheria hiyo ina nationalize business au inalazimisha serikali ipwe 50% ni upungufu mkubwa sana katika hoja zake.

 

[H.S]

Siasa iko wapi hapo kwenye maelezo yangu? Na kwa nini unataka kujenga hoja kwa kuchukua sentensi moja bdala ya muktadha mzima wa mchango wangu? Wewe ndiye unataka kuleta siasa hapa. Kwenye makala hiyo umeona kuna sehemu imeandikwa kiwango cha capital cha mwekezaji kwenye gemstones? All in all lazima joint venturing ndiyo ihusika kwenye uwekezaji wowote unaogusa rasilimali zetu hususan madini. Ndiyo msimamo wangu, habari ya kutegemea loyalty ya 4% na kodi mbuzi haukubaliki kwa sasa. Ni wakati wa kuamka.

Lengo lako la joint venture ni nini? Kama kinachokusumbua ni 4% na unataka 10% kwa nini usitunge sheria inayosema unataka 10% kodi?

Kama unataka $10m kwa mwaka kwenye mradi wa Tanzanite kwa nini hizo $10m lazima uzipate as shareholder na sio as mpokea kodi?

Do you know that tax is more powerful than dividend?

Do you know that in a tax system faida ikipatikana lazima kodi ya faida ilipwe lakini in shareholding faida ikipatikana body inaweza kuamua kutotoa mgao?

Do you know in kodi unaweza kukamata mali za mwekezaji lakini in joint venture huwezi kulazimisha dividend?

Do you know in tax you can change the tax code based on what is extracted and not profits and that guarantees you get revenue for anything extracted but in joint venture kama kampuni ikipata hasara huna kitu hata kama madini yamechimbwa?

Kwa nini una msimamo mkali for getting dividends na sio kodi ktk biashara ya Tanzanite, biashara amabayo tayari imeshakuwa established.

The concept of shareholding seems kuwasumbua sana watu ndio maana sheria za namna hii zinapita kwa vishindo BUngeni lakini end of the day njaa iko pale pale.

 

[Kichuguu]

Wachachopinga TanzaniteOne ni kutoa hisa za bure. Kuchukua hisa za bure kwa madai ya kwamba sheria inakupa mamlaka ya kuchukua tu maana yake ni kutaifisha.

'Wakisepa' as TanzaniteOne lakini wakirudi under the ownership of mtoto wa Waziri wewe utakuwa umepata nini amabacho hukipati under TanzaniteOne?

Ni afadhali uongelee hayo mapungufu ya sheria kwa kutoa madaraka makubwa kwa waziri, lakini siyo kupinga sheria inayotaka watanzania wawe na interests nyingi katika madini yao.

Halafu angalia tena kuwa sheria haisemi tanzanite one waote hisa za bure; hiyo ni distortion kubwa sana ambayo mtu mwenye busara na akili kama wewe usingetakiwa kuwa unaiendeleza bila kutoa facts. Kama waziri analazimisha watoe hisa za bure basi huo utakuwa ni uvunjaji wa sheria na Tanzaniteone wanaweza kumfungulia waziri huyo mashitaka mahakamani. Sheria inawataka walist shares zao kweny stok market ya Tanzania kusudi watanzania wazinunue. Economic benefits kubwa watakazopta watanzania kutokana na makampuni hayo ni kwa wao kununua shares kwenye makampuni hayo.

 

[H.S]

Ni afadhali uongelee hayo mapungufu ya sheria kwa kutoa madaraka makubwa kwa waziri, lakini siyo kupinga sheria inayotaka watanzania wawe na interests nyingi katika madini yao.

Kwani bila ya sheria hii Mtanzania anazuiliwa na kitu gani kuwa na hisa za TanzaniteOne? Umewahi kusikia kuna Mtanzania alitaka kununua kununua hisa za TanzaniteOne kwa idadi anayotaka yeye akakataliwa?

 

[Imany John]

Kwa sasa hapa sioni mjadala wa maana; kuna mtu nalalamikia interest zake binafsi huko Tanzanietone na wala halalamikii mambo ya kitaifa. Inapofikia mtu anadai kuwa Tanzaniteone iko listed kwenye stock market ya London kwa hiyo watanzania wakanunue stocks zake huo kama vile watanzania wenyewe hawana stock market yao, unaona kabisa mtu huyu ana matatizo fulani na Tanzania. Kama wako listed London, kwa nini hao Tanzaniteone wasiwe listed Tanzania? In fact mimi nitaka kununua stocks kadhaa wakishakuwa listed Dar, siwezi kwenda kuzifuata huko London au New York, ninazitaka hapahapa Dar.

Kama nilivyoandika huko nyuma, sheria hiyo ina mapungufu yanahohitaji kujadiliwa; lakini siyo mapungufu anayopigia kelele Mheshimiwa H.S. kwa sababu sasa hivi baada ya kuwa ameweka post nyingi sana zinazojichanganya zenyewe kwenye topiki hii hihi imefikia kuwa wazi kabisa kuwa yeye ana ishu zake bianafsi kuhusiana na tanzaniteone. Kushindwa kuonyesha mahala ambapo sheria hiyo ina nationalize business au inalazimisha serikali ipwe 50% ni upungufu mkubwa sana katika hoja zake.

Nimeligusia swala hilo,kama hatuna pesa taifa lifanye nini! Hapo ndipo state mining cooparation inapotakiwa kutukingia kifua taifa.

 

[H.S]

Halafu angalia tena kuwa sheria haisemi tanzanite one waote hisa za bure; hiyo ni distortion kubwa sana ambayo mtu mwenye busara na akili kama wewe usingetakiwa kuwa unaiendeleza bila kutoa facts. Kama waziri analazimisha watoe hisa za bure basi huo utakuwa ni uvunjaji wa sheria na Tanzaniteone wanaweza kumfungulia waziri huyo mashitaka mahakamani. Sheria inawataka walist shares zao kweny stok market ya Tanzania kusudi watanzania wazinunue. Economic benefits kubwa watakazopta watanzania kutokana na makampuni hayo ni kwa wao kununua shares kwenye makampuni hayo.

Hiyo economic benefit ya kuweza kununua shares tayari ipo. Hata wewe unaweza kununua hisa za TanzaniteOne online.

Kilichompa Naibu Waziri nguvu ya kufanya hivyo ni sheria hiyohiyo unayoitetea. Sheria inasema wazi serikali itapata 'free loader interest'. Naibu Waziri hakukurupuka, kumbuka na Wizara nayo ina wanasheria wake. Do not asume that this is going to be a a straight forward legal recourse. Sheria imeandikwa vibaya mno.

 

[Imany John]

Kwani bila ya sheria hii Mtanzania anazuiliwa na kitu gani kuwa na hisa za TanzaniteOne? Umewahi kusikia kuna Mtanzania alitaka kununua kununua hisa za TanzaniteOne kwa idadi anayotaka yeye akakataliwa?

Mböna unazungumzia t1?
Mbona unalia sana kuhusu mtu badala ya taifa?
Tunaitaji taifa liwe na jicho katika madini zaidi ya hili alilonalo.Kwani akitokea mtanzania akawa na 50% unafikiri taifa litafaidi nini?

Kama 50% akiwa nayo stamico kuna faida kubwa.

1.akipata gawio anapeleka kwa baba yake ambaye ni serikali.

2.Serikali bado itapokea mrabaha wake wa 3%.

3.Na kodi pia atakula kama kampuni itakuwa imeshafikia muda wa kulipa kodi.

Hapa taifa linakuwa na nafasi ya kufaidika na madini yake.

 

[H.S]

Mböna unazungumzia t1?
Mbona unalia sana kuhusu mtu badala ya taifa?
Tunaitaji taifa liwe na jicho katika madini zaidi ya hili alilonalo.Kwani akitokea mtanzania akawa na 50% unafikiri taifa litafaidi nini?

Kama 50% akiwa nayo stamico kuna faida kubwa.

1.akipata gawio anapeleka kwa baba yake ambaye ni serikali.

2.Serikali bado itapokea mrabaha wake wa 3%.

3.Na kodi pia atakula kama kampuni itakuwa imeshafikia muda wa kulipa kodi.

Hapa taifa linakuwa na nafasi ya kufaidika na madini yake.

unachotetea ni kupata hisa za bure za makampuni yaliyopo ama za kununua?

sina tatizo na kununua ama Stamico kuanzisha mines zake.

Stamico ikianzisha kampuni mpya GDP inaongezeka, Stamico ikichukua hisa zilizopo za bure GDP haiongezeki. GDP ya nchi haikuwi kwa kubadilisha majina ya watu wanaomiliki hisa.

 

[Imany John]

unachotetea ni kupata hisa za bure za makampuni yaliyopo ama za kununua?

sina tatizo na kununua ama Stamico kuanzisha mines zake.

Stamico ikianzisha kampuni mpya GDP inaongezeka, Stamico ikichukua hisa zilizopo za bure GDP haiongezeki. GDP ya nchi haikuwi kwa kubadilisha majina ya watu wanaomiliki hisa.

Katika michango yangu umeona kuna mahali natetea kuwa hisa za Bure, ndugu?

 

[Nguruvi3]

Captivating the fact that this is an improved Mining Act (thus inevitably a lot better than the last one) regardless to the problem of ‘ambiguity’ you deem to have transpired; Should we be worried of the Minning Act itself or the Government’s mal-interpretation of the Mining Act?

AshaDii, what you call mal-interpretation, I call it bamboozle.

Hon Zitto had it that investors and government are confused on mining act. The statement by hon underscores my point that Politicians are busy creating confusion in order to have conducive corruption atmosphere.

In every scandal particularly in mining sector the top government officials are involved.
I hope you can recall Buhemba,Buzwagwi, Bulyanhulu etc which hon Zitto fought for, so far all bigwigs have been exonerated at the cost of poor Tanzanians

The success story of Botswana is based on the discipline and corruption free society rather than piles of Mining act binders. We should not take our eyes off the ball. Our problem is deeply embedded in corruption.
Unless we hold everybody accountable no single Mining act will be a silver bullet.

 

[WOWOWO]

Lengo lako la joint venture ni nini? Kama kinachokusumbua ni 4% na unataka 10% kwa nini usitunge sheria inayosema unataka 10% kodi?

Kama unataka $10m kwa mwaka kwenye mradi wa Tanzanite kwa nini hizo $10m lazima uzipate as shareholder na sio as mpokea kodi?

Do you know that tax is more powerful than dividend?

Do you know that in a tax system faida ikipatikana lazima kodi ya faida ilipwe lakini in shareholding faida ikipatikana body inaweza kuamua kutotoa mgao?

Do you know in kodi unaweza kukamata mali za mwekezaji lakini in joint venture huwezi kulazimisha dividend?

Do you know in tax you can change the tax code based on what is extracted and not profits and that guarantees you get revenue for anything extracted but in joint venture kama kampuni ikipata hasara huna kitu hata kama madini yamechimbwa?

Kwa nini una msimamo mkali for getting dividends na sio kodi ktk biashara ya Tanzanite, biashara amabayo tayari imeshakuwa established.

The concept of shareholding seems kuwasumbua sana watu ndio maana sheria za namna hii zinapita kwa vishindo BUngeni lakini end of the day njaa iko pale pale.

As fay as you are here to protest whatever comes under joint ventures as you already portrayed to your articles hakuna jinsi naweza kubadilisha msimamo wangu. What I am saying let the right of gemstone ownership prevail. Anayemiliki madini aamue hatma ya madini yake na kwa kweli amiliki sehemu ya rasilimali hizo na si kugawa kila kitu.

Joint ventures doesn't mean excluding the state from collecting taxes from the project. Again you are trying to fabricate in order to win proponents. Ninaweza kuwa na miradi mingi lakini mradi mmoja unapohitaji bidhaa/support kutoka mradi mwingine lazima ni kwa kukopoeshana au kwa taratibu za kibiashara. With joint ventures doesn't mean normal tax regulations and procedures are to be overlooked we have to stick on them.

Remember, I am stressing the gemstone/minerals' ownership rights and nothing else. If I have minerals I am the one who is obligated to decide on the destiny and not the so called investors. Joint ventures have been successful to various states, it is just the matter of learning from the success and avoid failures.

Please don't just relies on the negative impacts of joint ventures look on the other side of the coin. And always remember joint ventures is the way we decide to make it for the betterment of the country.

 

[John Mashaka]

John,
Lastly, what greater stipulations which provide investor’s confidence, than the laws in Books? When Investors come to Tanzania they are supposed to know the law’s of the Industries they want to invest and not otherwise. Law’s are not there to be negotiated. Negotiating law is what has fuelled corruption and other red tapes in doing business in Tanzania; I wouldn’t expect for you suggesting a room for investors to negotiate our written laws. Even in common law grandfather country like U.K, law are not negotiated.

It is so unfortunate that you missed my point and even misconstrued it. LAWS can never be negotiated by an investor. If you don’t like the Law you have the option to look for opportunities elsewhere. However before you can invest, there is a negotiation stage in which the government makes offers, concessions and gives incentives. An investor assess the offers, if they don’t like what they hear, they walk away.

Unless you meant to tell me that Investors should simply come in without negotiating with the government !

 

[H.S]

As fay as you are here to protest whatever comes under joint ventures as you already portrayed to your articles hakuna jinsi naweza kubadilisha msimamo wangu. What I am saying let the right of gemstone ownership prevail. Anayemiliki madini aamue hatma ya madini yake na kwa kweli amiliki sehemu ya rasilimali hizo na si kugawa kila kitu.

Joint ventures doesn't mean excluding the state from collecting taxes from the project. Again you are trying to fabricate in order to win proponents. Ninaweza kuwa na miradi mingi lakini mradi mmoja unapohitaji bidhaa/support kutoka mradi mwingine lazima ni kwa kukopoeshana au kwa taratibu za kibiashara. With joint ventures doesn't mean normal tax regulations and procedures are to be overlooked we have to stick on them.

Remember, I am stressing the gemstone/minerals' ownership rights and nothing else. If I have minerals I am the one who is obligated to decide on the destiny and not the so called investors. Joint ventures have been successful to various states, it is just the matter of learning from the success and avoid failures.

Please don't just relies on the negative impacts of joint ventures look on the other side of the coin. And always remember joint ventures is the way we decide to make it for the betterment of the country.

What do you mean when you say you want joint venture? What joint venture did you get out of this law?

 

[John Mashaka]

I am quite disappointed by the attitude of our people (experts) in this thread. The level of understanding is quite shocking to say the least. No wonder we are in the economic mess since the inception of our nation. We must be realistic with ourselves. In today's world, any investment must have a win-win approach.

We love Tanzania than many think. Everything we work on, our focus is an opportunity for Tanzania. But when you read responses as those posted herein, you stop and think if this is the bigger picture of arrogance of our officials yet the country is drowning in the sea of poverty. Quite disappointing!

Don't expect someone to struggle to secure a loan, come to invest then expect to make a loss or just to benefit one side. Or even come in to allow some politicians or public officials to constantly tell them how to run their investments. Of course they must obey the country's Laws, but not being destabilized.

Clauses in a contract many a times provide room for re-negotiation. Unfortunately mining require massive capital, which takes decades to fully recoup. You cannot renegotiate a contract five years later on the basis of giving 50% of your investment to the government. Only communist types of government do that. Or those that infuse lot of initial (start-up) capital into the company. Agree or not the 2010 Mining LAW is prohibitory. It intends to safeguard Tanzania's rare stones, and if that is the case, the government rather not renews any contract. It should let all the investors go

The government would be better off to say that we do not want investors in our gemstones until we develop our own domestic capacity. Unfortunately such stringent LAWS have huge impact on the entire industry in the long run. Like I said, some of these Laws along with corruption and bureaucracy discourage us from courting big investors into our country

United States safeguards its natural resources. Laws are very strict; however, they benefit the investor, the community and the government. From what I am reading, some of us are touting nationalism without understanding the true meaning of NATIONALISM. Instead of arguing in the manner we are, we should have tried to explore alternatives, meanwhile we are standing to be on the losing side, locking out Direct Capital Inflow

Our attitude will soon backfire. I will not be surprised to see Tanzania on the International Court of Arbitration

 

[Zitto]

John Mashaka

It is Win win WIN - Win ya Investors, win ya Serikali and WIN ya wananchi. Win Win ni pale penye pande mbili, hapa tuna pande tatu. That was the thrust of Bomani Report which the government didnt really understand. I kindly ask you re read my article about who really owns our resources. It is basic but very fundamental for this discussion.

 

[Zitto]

Clauses in a contract many a times provide room for re-negotiation. Unfortunately mining require massive capital, which takes decades to fully recoup. You cannot renegotiate a contract five years later on the basis of giving 50% of your investment to the government. Only communist types of government do that. Or those that infuse lot of initial (start-up) capital into the company. Agree or not the 2010 Mining LAW is prohibitory. It intends to safeguard Tanzania's rare stones, and if that is the case, the government rather not renews any contract. It should let all the investors go

There is nowhere in the law where govt is obliged to take 50% from anybody. The contention here is on TanzaniteOne renewal of licence. The law says gemstone mining licence is given only to Tanzanians. Then, if huge capital needed foreigner allowed to own up to 50% of the entity. Now
TanzaniteOne must find a best way to issue its 25% of shares currently not owned by Tanzanians and one of the best way is to float it at DSE (preferable way for transparancy due to disclosures). The other best of the best is Botswana model. But on Botswana Model the govt has to think of taking over all licences in Mirerani and have one company like Debtswana with investor havng 50% and govt 50%. These matters must be discussed with between govt and TanzaniteOne.
The law is very clear. If a minister directed a private company to do something that minister is erring. Nationalisation is actually against the constitution of Tanzania (nationalisation with compansation is allowed)

 

[H.S]

I am quite disappointed by the attitude of our people (experts) in this thread. The level of understanding is quite shocking to say the least. No wonder we are in the economic mess since the inception of our nation. We must be realistic with ourselves. In today’s world, any investment must have a win-win approach.

We love Tanzania than many think. Everything we work on, our focus is an opportunity for Tanzania. But when you read responses as those posted herein, you stop and think if this is the bigger picture of arrogance of our officials yet the country is drowning in the sea of poverty. Quite disappointing!

Don’t expect someone to struggle to secure a loan, come to invest then expect to make a loss or just to benefit one side. Or even come in to allow some politicians or public officials to constantly tell them how to run their investments. Of course they must obey the country’s Laws, but not being destabilized.

Clauses in a contract many a times provide room for re-negotiation. Unfortunately mining require massive capital, which takes decades to fully recoup. You cannot renegotiate a contract five years later on the basis of giving 50% of your investment to the government. Only communist types of government do that. Or those that infuse lot of initial (start-up) capital into the company. Agree or not the 2010 Mining LAW is prohibitory. It intends to safeguard Tanzania’s rare stones, and if that is the case, the government rather not renews any contract. It should let all the investors go

The government would be better off to say that we do not want investors in our gemstones until we develop our own domestic capacity. Unfortunately such stringent LAWS have huge impact on the entire industry in the long run. Like I said, some of these Laws along with corruption and bureaucracy discourage us from courting big investors into our country

United States safeguards its natural resources. Laws are very strict; however, they benefit the investor, the community and the government. From what I am reading, some of us are touting nationalism without understanding the true meaning of NATIONALISM. Instead of arguing in the manner we are, we should have tried to explore alternatives, meanwhile we are standing to be on the losing side, locking out Direct Capital Inflow

Our attitude will soon backfire. I will not be surprised to see Tanzania on the International Court of Arbitration

I have been accused of not wanting to see Tanzanians own shares of TanzaniteOne when the fact og the mstter is thst snyone with internet access can buy the shares. Attitude is a huge problem.

 

[Kobello]

I am quite disappointed by the attitude of our people (experts) in this thread. The level of understanding is quite shocking to say the least. No wonder we are in the economic mess since the inception of our nation. We must be realistic with ourselves. In today's world, any investment must have a win-win approach.

We love Tanzania than many think. Everything we work on, our focus is an opportunity for Tanzania. But when you read responses as those posted herein, you stop and think if this is the bigger picture of arrogance of our officials yet the country is drowning in the sea of poverty. Quite disappointing!

Don't expect someone to struggle to secure a loan, come to invest then expect to make a loss or just to benefit one side. Or even come in to allow some politicians or public officials to constantly tell them how to run their investments. Of course they must obey the country's Laws, but not being destabilized.

Clauses in a contract many a times provide room for re-negotiation. Unfortunately mining require massive capital, which takes decades to fully recoup. You cannot renegotiate a contract five years later on the basis of giving 50% of your investment to the government. Only communist types of government do that. Or those that infuse lot of initial (start-up) capital into the company. Agree or not the 2010 Mining LAW is prohibitory. It intends to safeguard Tanzania's rare stones, and if that is the case, the government rather not renews any contract. It should let all the investors go

The government would be better off to say that we do not want investors in our gemstones until we develop our own domestic capacity. Unfortunately such stringent LAWS have huge impact on the entire industry in the long run. Like I said, some of these Laws along with corruption and bureaucracy discourage us from courting big investors into our country

United States safeguards its natural resources. Laws are very strict; however, they benefit the investor, the community and the government. From what I am reading, some of us are touting nationalism without understanding the true meaning of NATIONALISM. Instead of arguing in the manner we are, we should have tried to explore alternatives, meanwhile we are standing to be on the losing side, locking out Direct Capital Inflow

Our attitude will soon backfire. I will not be surprised to see Tanzania on the International Court of Arbitration

Your post reflects the mindset that is loosing its grip after 30 years of increased loans, capital flow and grants from developed nations and foreign investors. Since 1993, We've been soft and very welcoming to the private sector, especially the multinationals that you were fighting against in a few of your articles that I happened to read.

The problem is not the attitude. it's the global awakening (more like the wind of change) , especially from the less developed countries with much needed natural resources. From South America to the balkans and Asia Pacific, now Africa ..... people are starting to realize that the financing game is not as beneficial. Especially when you look at at the macro economic level.

There's no investor who will look at the normal village dweller from Nyamongo. They really don't give a damn about those people and it's ashame that there's still people who think that we need investment from outside.

We do't need investment from outside, we don't need loans and we definately don't need grants from China or NORDIC countries. What we need is a whole new set of "THOUGHT". A thought that we can do it by ourselves, together as a country and if we fall ,then we fall together. We can wait.

I have hopes for Tanzania, very big hopes. Tanzanian youth is the most patriotic and well informed when it comes to world politics compared to other nations, I know this. All we need now is a revolutionary leader that we can rally behind, and not these so-called philanthropists roaming arround wall street floors.

Just imagine, we need 10billion dollars just to break even as a nation. At the same time we are sitting on over a trillion $ worth of natural resources that so far, we havent seen even 1% of it coming our way. It's time to stop this, we can wait.

 

[H.S]

There is nowhere in the law where govt is obliged to take 50% from anybody. The contention here is on TanzaniteOne renewal of licence. The law says gemstone mining licence is given only to Tanzanians. Then, if huge capital needed foreigner allowed to own up to 50% of the entity. Now
TanzaniteOne must find a best way to issue its 25% of shares currently not owned by Tanzanians and one of the best way is to float it at DSE (preferable way for transparancy due to disclosures). The other best of the best is Botswana model. But on Botswana Model the govt has to think of taking over all licences in Mirerani and have one company like Debtswana with investor havng 50% and govt 50%. These matters must be discussed with between govt and TanzaniteOne.
The law is very clear. If a minister directed a private company to do something that minister is erring. Nationalisation is actually against the constitution of Tanzania (nationalisation with compansation is allowed)

Can you please explain the benefit of this requirement?

If an investor comes in with $500m and does not find Tanzanian investors willing, able and interested to invest $500 he should not be allowed to invest, why?

Hypothetically, if his $500m can generate $50m in earnings annually what is wrong with demanding what we consider our fair share of the $50m every year without Tanzanians having to come up with $500m?

Kama tunajua muwekezaji kawekeza $500m, na tunajua anapata faida ya $50m kwa mwaka, kwa nini tushindwe kupiga hesabu tujue atuachie kiasi gani (kama kodi sio dividends) ili pande zote ziridhike na badala yake tunaweka requirement ya Mtanzania amiliki nusu ya hisa zote?

Mradi A, nusu unamilikiwa na mgeni na nusu unamilikiwa na Mtanzania.

Mradi B, 100% unamilikiwa na mgeni.

How do the two situations change how much revenues the government gets? How do the two situations differ in terms of GDP?

 

[H.S]

There is nowhere in the law where govt is obliged to take 50% from anybody. The contention here is on TanzaniteOne renewal of licence. The law says gemstone mining licence is given only to Tanzanians. Then, if huge capital needed foreigner allowed to own up to 50% of the entity. Now
TanzaniteOne must find a best way to issue its 25% of shares currently not owned by Tanzanians and one of the best way is to float it at DSE (preferable way for transparancy due to disclosures). The other best of the best is Botswana model. But on Botswana Model the govt has to think of taking over all licences in Mirerani and have one company like Debtswana with investor havng 50% and govt 50%. These matters must be discussed with between govt and TanzaniteOne.
The law is very clear. If a minister directed a private company to do something that minister is erring. Nationalisation is actually against the constitution of Tanzania (nationalisation with compansation is allowed)

Can you please explain the benefit of this requirement?

If an investor comes in with $500m and does not find Tanzanian investors willing, able and interested to invest $500 he should not be allowed to invest, why?

Hypothetically, if his $500m can generate $50m in earnings annually what is wrong with demanding what we consider our fair share of the $50m every year without Tanzanians having to come up with $500m?

Kama tunajua muwekezaji kawekeza $500m, na tunajua anapata faida ya $50m kwa mwaka, kwa nini tushindwe kupiga hesabu tujue atuachie kiasi gani ili pande zote ziridhike na badala yake tunaweka siasa ya lazima Mtanzania amiliki nusu ya hisa zote?

Mradi A, nusu unamilikiwa na mgeni na nusu unamilikiwa na Mtanzania.

Mradi B, 100% unamilikiwa na mgeni.

How do the two situations change how much revenues the government gets?

Kama studies zinaonesha mradi wa uchimbaji gemstone utampatia mgeni 15% annual return na sheria inasema hawezi kumiliki hisa bila ya Mtanzania, kama akiamua amkopeshe Mtanzania afanye hiyo shughuli kwa interest ya 15% ina maana hiyo return in mining ataipata tu hata kama sio mwanahisa, kimsingi atakuwa amewekeza katika madini lakini sio mwanahisa wa kampuni ya kuchimba madini.sasa hapo sheria imemzuia vipi mgeni kufaidika bila ya kuhangaika na ukiritimba na 'sheria za kisiasa' zilizojaa nchini? In fact kwa mpango huu, Watanzania sio lazima na wao wawekeze 50% kwa sababu percentage ya funding and dividends will be dictated by negotiation, mtu anaweza kutafuta 10% ya capital required and he is in business na mgeni bila ya kuipita DSE lakini sheria inamlazimisha Mtanzania tafute 50% or else anapoteza fursa ya kuingia ubia na muwekezaji mgeni. Sasa huko ndio kumsaidia Mtanzania ama kumkwamisha?

It is pretty clear that leo hii mgeni na Mtanzania wanaweza kuingia ubia wa biashara in gemstone mining bila ya 50/50 requirement. Kuna faida gani ya kuwa na sheria ambayo ni kama mlango wenye masharti magumu wakati kuna milango mingine 12 isiyo na masharti magumu?

What is the benefit of this law so far besides kuwapa wapiga kura 'matumaini'?