Impact of Legal Framework Governing Investment in Tanzania on Ensuring Maximum Benefits for the Country and Its Citizens:
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SAUT
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This study analyses the legal framework governing investments in the mineral and
petroleum sectors in Tanzania. It investigates the mining and petroleum legal regime’s
impact on ensuring that the country and its citizens obtain maximum benefits from
mineral and petroleum investments. The study employed qualitative method; it has
combined both library and Internet research as well as interview. The study intended to
ascertain potential significant impact of the legal framework governing mining and
petroleum investments on ensuring maximum benefits for the country and its citizens.
This study discovers that at different periods, the legal framework governing investment
in Tanzania, particularly investments in the mineral and petroleum sectors, has been
founded with principles of law which do not carry in them the best interests of the
country to guarantee maximum benefits for the country and its citizens. These principles
have affected the aspects of investment law owing potential significance to ensuring
maximum benefits for the country and its citizens, namely; fiscal framework; local
content; employment, training and transfer of technology; compensation for relocation
and resettlement for local population whose land rights have been violated in the course
of investment operations; free carried interest; corporate social responsibility (CSR); and
empowerment. This study recommends for the government to incorporate in its
investment law, particularly laws which govern mineral and petroleum operations,
principles and theories which provide for the right of natural resource rich states and their
people to benefit maximally from their use of resources as a remedial measure. Such are
the principle of Permanent Sovereignty over Natural Resources (PSNR) and the theory of
resource nationalism.
Keywords
investment legal: mineral and petroleum sectors