1. Making the Most of the Commodities Boom: Tanzania Vuyo Mjimba

2. The Country Location: Eastern Africa, bordering the Indian Ocean, between Kenya, Zambia and Mozambique Land area 945 000km 2 Population, 40.2m

3. The Economy Import commoditiesconsumer goods, machinery and transportation equipment, industrial raw materials, crude oil. Imports – partnersChina 12%, Kenya 8%, South Africa 7.7%, India 6.9%, UAE 5.9% (2007 Exports – commoditiesgold, coffee, cashew nuts, manufactures, cotton Exports – partnersChina 10.3%, India 9.7%, Netherlands 6.5%, Germany 6.3%, UAE 4.9% (2007 Source: CIA WORLD FACTS BOOK

4. Economic Indicators Growth of the Tanzanian economy: 1965-2004(% Real) 1965-20042.6 1965-19667.8 1967-19852.9 1986-20043.9 1986-19933.2 1994-20054.5 ( Mbelle, 2005)

5. Economic History 1967-19851986-19951996-PRESENT UJAMAA MKUKUTA/MKUZA Socialism: Economic Decline Liberalization Partial Reforms Macroeconomic Stabilization Structural Reforms LIBERALIZATION & PARTIAL REFORMS

6. GROSS DOMESTIC PRODUCTION Source: World Bank, World development Indicators, WDI (December 2008)

7. GROSS DOMESTIC PRODUCTION Source: World Bank, World development Indicators, WDI (December 2008) !! UJAMAA L % PR M & M

8. Allocation of GDP by Sector Source: IMF,USGS and UNCTAD 2009

9. Allocation of GDP by Sector Source: IMF

10. Monetary Policy and Financial Sector 1980-No capital or Money markets 1991 BFIA and LART 1992 Private Banks and NBFIs Bank of Tanzania Act, 1995

11. Inflation. Source: World Bank, World development Indicators, WDI (December 2008)

12. International Trade Source:

13. Savings Source: World Bank, World development Indicators, WDI (December 2008)

14. Foreign Direct Investment Source: World Bank, World development Indicators, WDI (December 2008)

15. Demographics Source: World Bank, World development Indicators, WDI (December 2008

16. National Income Distribution Source: World Bank, World development Indicators, WDI (December 2008) and Earth Trends

17. Minerals in the Economy Gold, Copper, Nickel, Diamond* Gemstone, Iron Ore, Cobalt, Coal and Natural Gas. Calcite, Cement, Phosphate minerals, Silver, Vanadium, Titanium, Platinum Group Metals, Uranium Salt (of all types), Stone, Sand and Gravel.

18. Major Actors MINERALMAJOR ACTOR GOLDBarrick Gold, Geita Gold COPPERBarrick Gold, Xstrata plc GemstoneTanzaniteOne Ltd, Artisinal miners DiamondDe Beers Group Iron OreNDC NickelAlbidon, BHP Billiton CoalTanpower Resources Natural GasOrca Exploration Group

19. Gold Production

20. Country19982002 20052006 WORLD2,500,0002,530,0002,470,0002,460,000 South Africa 465,100398,523294,671272,128 United States 366,000298,000256,000252,000 China178,000192,000225,000245,000 Ghana72,54169,27166,85266,205 Mali20,56256,04349,23055,484 Papua New Guinea 61,64161,37968,48350,000 Tanzania42743,32052,23646,000 Source:USGS (2005)

21. Gold and Gemstones Production Source: USGS and Chamber of Mines South Africa Gold Production

22. Gold Production Rankings Country % Share in World Production World Ranking African Ranking 1998200220052006 South Africa 19%16%12%11%11 United States 15%12%10% 2 China7%8%9%10%3 Ghana3% 102 Mali1%2% 113 PN Guinea2% 3%2%124 Tanzania0%2% 135 Source:USGS (2005 )

23. Gold Reserves Source:USGS, 2006 Mine Production (metric tons gold content) 20052006Reserves Country South Africa7938406 000 USA2562602 700 Tanzania5247850 (2%) World2 4702 50042 000

24. Gemstone Production In thousand carats

25. Country19992004 20052006 WORLD61,10086,20091,80091,300 Botswana17,20023,30023,00024,000 Russia11,50021,40023,400 Australia13,4006,0588,5777,310 Angola3,6005,4906,3007,000 DR Congo4,1206,1806,1005,600 South Africa 4,0105,8006,4006,240 Tanzania 200258185200 Source:USGS (2005)

26. Gemstone Production Rankings Country % Share in World Production World Ranking African Ranking 1998200220052006 Botswana28%27%26% 11 Russia19%25% 26%2 Australia22%7%9%8%3 DR Congo7% 6%74 Angola6% 7%8%63 South Africa 7% 8%52 Tanzania0.3% 0.2% 1611 Source:USGS (2005 )

27. Diamond, Gemstone value chain Source: Baartjes, Mintek 2007 Exploration Production Cut & Polish Manufacture Retail Mine Set up

28. Diamond, Gemstone value chain Baartjes, Mintek 2007 Cut & Polish Rough Sales Rough Dealer Cut &Polish Polished Sales Polished Dealing

29. COPPER USGS,2007 Mine Production 20052006Reserves Country Chile5 3205 400150 000 USA1 14401 22035 000 Zambia43654019 000 Tanzania3.53.2160 (0.03%) World15 00015 300480 000

30. Mineral Policy of Tanzania 1997 OBJECTIVES to stimulate exploration and mining activities to regulate and improve artisanal mining; to ensure that wealth generated from mining support sustainable economic and social development; to minimise or eliminate adverse social and environmental impact of mining activities to promote and facilitate mineral and mineral based products’ marketing arrangements to alleviate poverty especially for artisan and small scale miners; to promote and develop Tanzania as the gemstone centre of Africa Source: Government of Tanzania Mineral Policy

31. Government Role Policy formulation to accommodate the overall and sectoral government policy framework. Advising on legislation, regulation and fiscal matters related to the sector. Revenue collection through royalties, annual rents, prospecting rights and licenses. Monitoring of mining activities. Collection and maintenance of geo-technical data for promotional purposes. Provision of extension services to small scale miners. Administration and inspection of mining activities, and Carrying out research on minerals.

32. Bank credit to private sector (%of GDP) 2000200120022003200420052006 2007 TANZ 4.14.45.56.77.68.910.8 KENYA 25.823.624.223.125.424.524.925.5 SA 69.276.358.463.966.170.177.882.8 S ource:USGS (2005 )

33. Possibilities Gold Copper Gemstone Iron ore

34. Looting and routing World ($138million) USA ($500million) Tanzania ($12million )

35. WHY(NOT) GEMSTONES Sole source of Tanzanite?Reaction of current actors Tanzania mineral policy? Researcher safety Parallels with Botswana

36. THANK YOU