A Study On The Legislation Of Local Content Of Tanzania Mining

Local content generally refers to that when foreign investors invest in the host country,they need to purchase a certain amount of local goods or services,ensure a certain amount of local shares in the foreign investment company,hire and train a certain number of local employees,transfer specific technology to the local,etc.Indigenous component legislation is an important measure taken by resource rich African countries to improve the lives of local people and increase the economic benefits of natural resource exploitation.Tanzania has also carried out a series of legislative reforms in the field of mining to increase local content requirements.In particular,Tanzanian government Announcement No.3 issued in 2018,namely The Mining(Local Content)Regulations,provides specific and unified provisions for the implementation of localization.Tanzania hopes to solve the employment and training problems of Tanzanian citizens,reduce social unrest and violence and realize industrialization through the implementation of localization.First of all,Tanzania's local component of mining legislation stipulates the priority of Tanzania's local companies,goods and services.In mining activities,foreign mining companies need to give priority to local Tanzanian companies,commodities and financial,insurance and legal services.Secondly,foreign mining companies give priority to the employment and training of Tanzanian citizens.Finally,in order to enhance the competitiveness of Tanzania's enterprises,foreign mining companies need to transfer technology to Tanzania.In addition,in order to ensure the effective implementation of Tanzania's local component legislation,establish a local component plan system to ensure the minimum local component content,review and evaluate the local component plan system,and provide strict punishment measures for violations of local component legislation.For Tanzania,the above-mentioned local component requirements are extremely beneficial in overcoming the curse of Tanzania's resources,improving the rights and interests of the Tanzanian people and enhancing the competitiveness of Tanzanian enterprises.However,the implementation of Tanzania's local component legislation is not achieved overnight.In the process of its implementation,due to the inconsistency of local component regulations in different areas of natural resources,the corruption and poor supervision of government institutions,and the suspicion and distrust among stakeholders,all of these have caused potential negative impact on the implementation of local component legislation.In particular,investment disputes with foreign investors have beentriggered.There have been cases that the friction between the Tanzanian government and foreign mining companies is intensified due to the implementation of local component legislation.In order to ensure the legitimate interests of foreign investors,it is necessary to analyze the local component legislation of Tanzania's mining industry from various perspectives.Therefore,in order to cope with the above-mentioned negative effects,higher requirements are put forward for the Tanzanian government and the local component legislation of mining industry.As China's “one belt,one road” initiative is advancing,Chinese enterprises' investment in Tanzania is also increasing.It is also of practical significance to analyze the legislation of Tanzania's local ingredients for China's enterprises.