Revenue Transparency in the Extractive Industries in Tanzania

The oil, gas and mining sectors can generate huge revenues for companies involved and host governments. However, experience from different countries suggests that countries that are more dependent on revenues obtained from natural resources tend to grow with a lesser speed than countries that are resource poor. Moreover, the countries that are more dependent on such resources tend to suffer from corruption, weak accountability and weak institutions. In the literature, this phenomenon is summed up under the concept of the “resource curse”. There is a growing recognition among researchers, governments and civil society activists that one part of the solution to the resource curse and its associated problems lies in fostering transparent and accountable management of natural resource revenues to ensure that natural resource wealth is translated into economic growth and development.

=Revenue Transparency in Tanzania= A lack of transparency has been the norm in Tanzania’s extractive industries    and the Tanzanian public has for a long time been discontented with the prevalent opacity, mediocrity and impunity, prompting perception of corruption as senior government officials regulated mineral and gas resources in the country. In February 2009, the Tanzanian Government took a significant step toward enhancing transparency by deciding to join the Extractive Industries Transparency Initiative (EITI). Before then, mining companies were the only source of information and there was nobody to ascertain the veracity of the information. However, even today, the public believes corruption and rent-seeking had significantly influenced the government to entering secretly into Mining Development Agreements (MDAs) and Gas Production Sharing Agreements (PSAs) with extractive companies.

=Tanzania Extractive Industries Transparency Initiative (TEITI)= The Extractive Industries Transparency Initiative (EITI) is a global coalition of governments, companies and civil society organisations working together to improve openness and accountable management of revenues from natural resources.

Tanzania joined EITI in February 2009. Today, Tanzania is a full member of EITI, one of only 21 countries that the EITI Board has declared in full compliance with EITI Standards, meaning that the country has an effective process for annual disclosure and reconciliation of all revenues from its extractive sector. To-date, four annual EITI reports have been published. They cover the period from 1 July 2008 to 30 June 2012.

"Main article: Extractive Industries Transparency Initiative (EITI)"

"Main article: Tanzania Extractive Industry Transparency Initiatives (TEITI)"

=Open Government Partnership= The Open Government Partnership (OGP) is an initiative aimed at enhancing government performance in providing up-to-date official data to the public. Launched in 2011, the OGP provides an international platform for domestic reformers committed to making their governments more open, accountable and responsive to citizens. Tanzania joined the OGP in 2011 and has to-date prepared two action plans to enhance its commitment to global initiatives. Tanzania’s second Action Plan for the OGP covers the July 2014 to June 2016 period. It consists of commitments in five key areas:

1.	Freedom of Information

2.	Open Data

3.	Budget Transparency

4.	Land Transparency

5.	Extractive Industries Transparency

Although the country’s commitment to enacting a Freedom to Information Act by December 2014 attracted major media attention nothing tangible has materialised out of this commitment thus far.

=Transparency International in Tanzania= Transparency International (TI) is a global civil society organisation fighting corruption. The Tanzania Chapter of TI was formed in May 2009. Since then, TI has published different surveys on the state of corruption in the country. According to TI’s 2013 Global Corruption Barometer, Tanzania is one of the 14 most corrupt countries in the world. About 56 percent of the survey’s respondents admitted to having given a bribe to one or more government and non-government institutions, including political parties, religious organisations and the media.

=Publish What You Pay in Tanzania= Publish What You Pay (PWYP) is a global network of civil society organisations calling for an open and accountable extractive sector. The National Coalition of PWYP - Tanzania was established in 2010. PWYP - Tanzania is a resource transparency campaign focusing on oil, gas, minerals, forestry and fisheries. Currently, the PWYP - Tanzania coalition is being revamped. The process is due to be completed by the summer of 2015.

"Main article: Publish What You Pay (PWYP)"

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