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Optimal local content for extractive industries: How can policies best create benefits for Tanzania?

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  • Mia Ellis
  • Margaret McMillan

Abstract

Tanzania is rich with natural resources, which have significant potential to contribute to the country's economic development. Several laws recently passed in Tanzania are dedicated to establishing linkages between foreign firms in natural resource extraction and the local economy. This paper documents this legislation and the institutions set up to enforce and monitor these laws. Effectiveness of local content legislation and the potential for firms in the mining sector to contribute to local development are then evaluated using a combination of qualitative and quantitative evidence.

Suggested Citation

  • Mia Ellis & Margaret McMillan, 2018. "Optimal local content for extractive industries: How can policies best create benefits for Tanzania?," WIDER Working Paper Series wp-2018-133, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-133
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    References listed on IDEAS

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    2. Kegomoditswe Koitsiwe & Tsuyoshi Adachi, 2017. "Linkages between mining and non-mining sectors in Botswana," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(2), pages 95-105, July.
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    4. Silvana Tordo & Michael Warner & Osmel E. Manzano & Yahya Anouti, 2013. "Local Content in the Oil and Gas Sector," World Bank Publications - Books, The World Bank Group, number 15930.
    5. Adedeji, Abdulkabir Niran & Sidique, Shaufique Fahmi & Rahman, Azmawani Abd & Law, Siong Hook, 2016. "The role of local content policy in local value creation in Nigeria's oil industry: A structural equation modeling (SEM) approach," Resources Policy, Elsevier, vol. 49(C), pages 61-73.
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    Cited by:

    1. Jambo Ramadhani & Emmanuel Maliti, 2023. "Implementation of local content regulation: The case study of a foreign-owned mining operation in Tanzania," WIDER Working Paper Series wp-2023-77, World Institute for Development Economic Research (UNU-WIDER).
    2. Pedersen, Rasmus Hundsbæk & Mutagwaba, Willison & Jønsson, Jesper Bosse & Schoneveld, George & Jacob, Thabit & Chacha, Maisory & Weng, Xiaoxue & Njau, Maria G., 2019. "Mining-sector dynamics in an era of resurgent resource nationalism: Changing relations between large-scale mining and artisanal and small-scale mining in Tanzania," Resources Policy, Elsevier, vol. 62(C), pages 339-346.

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