Implementation of local content regulation: The case study of a foreign-owned mining operation in Tanzania

Résumé fourni par la source

Based on a case study of an anonymous mining company in Tanzania, this study assesses the implementation of the local content (LC) regulations and guidelines in the country. The analysis focused on the key LC aspects of the direct workforce (employment and training), procurement of goods and services, and technological transfer to uncover the extent to which the company implements the LC regulations. Findings show that the share of Tanzanian nationals in the total workforce of the company was as high as 98 per cent, with the wage share of the nationals increasing from 80 per cent (2018) to 84 per cent (2020). The trend is attributable to the company’s investments in its own succession plans targeting skills and employment transfer from foreigners to Tanzanians. The value of local procurement also increased from 85 per cent (2018) to 87 per cent (2020). In 2020 for instance, three out of the top five local vendors (in terms of the value of supplies) were joint ventures between local and foreign companies. Measuring mining companies’ commitment to the regulations on technology transfer remains difficult, mostly because the regulations lack clarity on what exactly technology transfer entails. The study also discusses other challenges confronting LC implementation in the mining sector of Tanzania and the potential policies to address such challenges.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.