Tanzania has achieved a moderate overall score in implementing the 2019 EITI Standard (77 points). The overall score reflects an average of the three component scores on Stakeholder engagement, Transparency, and Outcomes and impact.
On Outcomes and impact, Tanzania achieved a moderate score (75.5 points). The Board commends Tanzania for its important efforts in dissemination of EITI Reports in mining regions, tailoring communication of EITI data to host communities. Tanzania has also introduced data visualisations on its EITI website. Work planning is largely robust and is fully costed but could be more explicit on how EITI aligns with national and sectoral priorities. Tanzania EITI (TEITI) has good routines in reporting on their activities to the government and to Parliament, with EITI Reports providing regular public reviews of the EITI’s impact. There is potential to strengthen the annual public review of EITI outcomes and impact to ensure that there is consistent follow-up on EITI corrective actions and recommendations beyond the EITI reporting cycle. Tanzania was awarded 1.5 additional points for the effectiveness and sustainability of its implementation.
Tanzania achieved a moderate component score on Stakeholder engagement (82.5 points). The government has renewed its commitment to the EITI and has recently agreed to increase staffing of the national secretariat to support implementation. Both industry and civil society constituencies participate fully in all aspects of the EITI process. The multi-stakeholder group (MSG) was disbanded for a period of 14 months due to government regulations decreasing the size of government committees to eight members, which meant that civil society and industry each had their seats reduced by three representatives. The disbanding of the MSG also meant that there was no multi-stakeholder oversight of key EITI outputs in part of the period under review. Despite concerns from certain civil society members about perceived restrictions to civic space, all stakeholders consulted, including from civil society, acknowledge that there has been an overall improvement in government engagement and civic space since the previous Validation.
On the Transparency component, Tanzania achieved a moderate score (73.5 points). The Board commends Tanzania for the continued strong engagement of the Controller and Auditor General in its extractive industries audit. Some weaknesses were identified on the methodology for EITI reporting, but nonetheless there is a solid basis for Tanzania to build on robust audit practices for its EITI reporting. Tanzania is also commended for its continued collection of data on extractive companies’ operating and capital expenditures, as well as disclosures of local procurement of goods and services, to inform local content policies. The Board encourages TEITI to make greater use of EITI data as a basis for assessing whether extractive company contributions are in line with their legal and contractual obligations. Actual extractive contract disclosure remains limited despite the legal basis and public interest in the terms and conditions of the main mining and gas projects. The Board commends Tanzania for its ongoing efforts on beneficial ownership and its progress since the previous Validation. Awareness raising and training on disclosures should improve the actual disclosures and enable the MSG’s scrutiny of the comprehensiveness and reliability of beneficial ownership disclosures.
The Board has determined that Tanzania will have until a next Validation commencing on 1 January 2026 to carry out corrective actions regarding MSG governance (Requirement 1.4), Work plan (Requirement 1.5), Economic contribution (Requirement 6.3), Contracts and license allocations (Requirement 2.2), Contracts (Requirement 2.4), Beneficial ownership (Requirement 2.5), Comprehensiveness (Requirement 4.1), SOE transactions (Requirement 4.5), Disaggregation (Requirement 4.7), Subnational payments (Requirement 4.6), Social and environmental expenditures (Requirement 6.1), SOE quasi-fiscal expenditures (Requirement 6.2), Recommendations from EITI (Requirement 7.3) and Outcomes and impact (Requirement 7.4). Failure to demonstrate progress on Stakeholder engagement, Transparency or Outcomes and impact in the next Validation may result in temporary suspension in accordance with Article 6 of the EITI Standard. In accordance with the EITI Standard, Tanzania may request an extension of this timeframe or request that Validation commences earlier than scheduled.
Corrective actions and strategic recommendations
The EITI Board agreed the following corrective actions to be undertaken by Tanzania. Progress in addressing these corrective actions will be assessed in the next Validation commencing on 1 January 2026:
- In accordance with Requirement 1.5, Tanzania is required to clearly reference national priorities the EITI is contributing to. TEITI is required to allow MSG members to consult the broader constituencies for feedback on implementation priorities and objectives, and to document the MSG discussions on the priorities for EITI implementation, as to ensure that the work plan is a result of constituency deliberation. To strengthen implementation, TEITI is encouraged to reflect on a theory of change and implement a log frame to continuously take stock of progress on the work plan activities and to assess at the end of the year if the activities had the intended outcomes and impacts towards the objectives. The annual TEITI work plan could further strengthen the alignment of EITI implementation objectives with the EITI Principles and reflecting national priorities for the extractive industries, including those from the broader industry and civil society constituencies.
- In accordance with Requirement 7.3, Tanzania should demonstrate the mechanism for following up on recommendations and corrective actions, and to strengthen the multi-stakeholder oversight to ensure that the necessary steps are taken to achieve progress.
- In accordance with Requirement 7.4, Tanzania is required to publish annual reviews of activities, outcomes and impacts of EITI implementation. The annual self-assessment must be subject to review and input from all constituencies prior to publication. To strengthen implementation, Tanzania is encouraged to publish the expenditures of the previous year alongside the assessment of progress on the previous year’s work plan.
- In accordance with Requirement 1.4, the government should ensure that all constituencies are treated as equal partners in all aspects of the EITI process, including the MSG’s decision-making. To strengthen implementation, civil society and company constituency are encouraged to adopt constituency guidelines which specify the manner the constituency nominates candidates for MSG representation.
- In accordance with Requirement 6.3, Tanzania should ensure that there is a public understanding of the extractive industries’ contribution to the national economy by including overall government revenues and stating the share of extractive revenues to total government revenues. Tanzania should publish total export values and the extractive share alongside each other to allow a public understanding of the sector’s contribution to the economy. Tanzania should publish the contribution of the small-scale mining sector to government revenues as soon as the data is available.
- In accordance with Requirement 2.4, Tanzania is required to disclose any mining, oil and gas contracts, concessions and licenses that are granted, entered into or amended from 1 January 2021. Tanzania is encouraged to publicly disclose any mining, oil and gas contracts, concessions and licenses, including those awarded or amended prior to 2021, to comply with the TEITA Act of 2015. The multi-stakeholder group is expected to update the publication plan for disclosing contracts with a clear timeframe for implementation, addressing any barriers to comprehensive disclosure. Tanzania should provide a list of all active contracts, concessions and licenses (including annexes, amendments and riders), indicating which are publicly available and which are not. For all published contracts and licenses, it should include a specific link or reference to the location where the contract and/or license is published. If a contract or license is not published, the legal or practical barriers should be documented and explained. Where disclosure practice deviates from legislative or government policy requirements, an explanation should be provided.
- In accordance with Requirement 2.2, Tanzania should provide information on the method for reaching the conclusion of non-trivial deviation in the allocation and transfer of licenses. Tanzania should identify and publish the licenses and identity of licensees transferred in the period under review.
- In accordance with Requirement 2.5, Tanzania is required to disclose the beneficial and legal owners of all companies holding or applying for extractive licenses. To achieve this target, Tanzania should establish an enabling legal and regulatory framework for the public disclosure of beneficial ownership information of all oil, gas and mining companies that includes all data points listed in Requirement 2.5. In particular, these disclosures should ensure that the identity of politically exposed persons and the identity of shareholders and their share of equity in all companies holding mining and petroleum rights in Tanzania. While government agencies currently collect this information, Tanzania should strengthen data assurance and reliability processes to ensure that reported data is accurate, comprehensive and up to date through the publication of regular assessments that highlight significant gaps and weaknesses in collection and disclosure. Tanzania’s MSG should name those entities that have failed to disclose all or parts of the required beneficial ownership information. Tanzania is encouraged to systematically publish BO information through a public register.
- In accordance with Requirement 4.5, Tanzania’s MSG should provide a clear assessment of the reliability and comprehensiveness of company payments and government revenues in light of discrepancies found during reconciliation.
- In accordance with Requirement 6.2, Tanzania is required to provide evidence of the MSG’s discussions on the definition of QFEs and document its review of SOE expenditures in order to conclude whether any SOE expenditures could be categorised as “quasi-fiscal”. Where SOE expenditures are categorised as “quasi-fiscal”, they should be comprehensively disclosed in accordance with Requirement 6.2.
- In accordance with Requirement 4.1, Tanzania must ensure that all extractive industry revenues are disaggregated by revenue stream to allow detailed public understanding of the contribution of the extractive industries to government revenues, and to understand the coverage of reconciled payments. Tanzania should ensure that all government revenues from material companies’ payments are comprehensively and reliably disclosed in a disaggregated manner. Tanzania is encouraged to consider applying a higher materiality threshold for selecting companies and revenue streams in the scope of reconciliation and continue disclosing additional data through unilateral government disclosures.
- In accordance with Requirement 4.7, Tanzania should ensure that a comprehensive list of all revenue streams that are levied on a project level is disclosed and ensure that all material revenues from the extractive industries are disaggregated by project, where the revenues are levied on a project level. If multiple agreements are substantially interconnected, the multi-stakeholder group must clearly identify and document which instances are considered a single project.
- In accordance with Requirement 4.6, Tanzania is required to comprehensively disclose all material direct subnational payments by extractives companies to local government entities, with appropriate quality assurances in accordance with Requirement 4.9.
- In accordance with Requirement 6.1, Tanzania is required to ensure public disclosure of all material social and environmental expenditures made by extractive companies and to specify whether these expenditures were made to non-government beneficiaries. To strengthen implementation, Tanzania is encouraged to disclose voluntary social expenditures and environmental expenditures.
Tanzania is encouraged to consider the following recommendations to strengthen EITI implementation:
Outcomes and impact
- To strengthen implementation of Requirement 7.1, Tanzania is encouraged to tailor its EITI-related outreach events, whether organised by government, civil society or companies, to respond to topics of public interest, building on EITI disclosures across the governance value chain. Tanzania is encouraged to make use in particular of its advanced disclosures on cost, disaggregated employment figures and data on procurement of goods and services from local companies (company disclosures).
- To strengthen implementation of Requirement 7.2, Tanzania is encouraged to make the data dashboard more visible from the main TEITI website and to ensure that the dashboard contains the latest data from EITI reporting. Tanzania is encouraged to link to other available datasets published by government or company entities that are required or encouraged by EITI Requirements, where publicly available.
- To strengthen implementation of Requirement 1.1, the government is encouraged to ensure that barriers to disclosures, such as publishing contracts are removed and to ensure that the recommendations and corrective actions from EITI reporting and Validation are followed-up. To strengthen implementation, the Ministry of Energy is invited to increase its engagement with the EITI.
- To strengthen implementation of Requirement 1.2, the industry associations are encouraged to ensure a mechanism for systematic engagement and information-sharing related to the EITI process within the constituency, including companies that are active but not members of their respective association.
- To strengthen implementation of Requirement 1.3, the MSG is encouraged to monitor the enabling environment for civil society participation in extractive sector governance and to document any issues identified, as well as actions required to address challenges. The government is encouraged to undertake measures to prevent civil society actors from being harassed or intimidated for expressing views related to oil, gas or mining governance. Should civil society actors engaged in the EITI experience threats or harassment for expressing views about the extractive industries or engaging in other EITI-related activities, the government is expected to undertake measures to protect these actors and their freedom of expression. The government, in collaboration with the MSG, is encouraged to document the measures it undertakes to remove any obstacles to civil society participation in the EITI.
- To strengthen implementation of Requirement 2.1, Tanzania is encouraged to publish the status of the government’s renegotiation of contracts or entering of framework agreements with large mining companies in EITI reporting. As soon as there are any plans for further reforms or amendments of existing legislation, these are to be communicated on government websites or through EITI reporting.
- To strengthen implementation of Requirement 2.3 Tanzania is encouraged to systematically disclose information on all oil and gas licenses.
- To strengthen implementation of Requirement 2.6, Tanzania is encouraged to systematically disclose information on SOEs’ financial relations with the state on government websites and only use EITI reports to summarise this information.
- To strengthen implementation of Requirement 3.1, Tanzania is encouraged to ensure timely publication of the Annual Reports of the Mining Commission, which contain rich information on ongoing negotiations and recent contracts with companies.
- To strengthen implementation of Requirement 3.2, Tanzania is encouraged to publish production volumes and value disaggregated to project level. TPDC is encouraged to systematically disclose the data on gas production. Tanzania is encouraged to include sources and the methods for calculating production volumes and values.
- To strengthen implementation of Requirement 3.3, Tanzania is invited to disclose minerals export by state/region of origin, company or project. Tanzania is encouraged to include an estimate of smuggled minerals.
- To strengthen implementation of Requirement 4.4, Tanzania is encouraged to explain the different types of transportation revenues. Tanzania is encouraged to agree a procedure to address data quality and assurance of information on transportation revenues, in accordance with Requirement 4.9.
- To strengthen implementation of Requirement 4.8, Tanzania is encouraged to pursue efforts of improving the timeliness of reporting.
- To strengthen implementation of Requirement 4.9 and the Terms of Reference for Independent Administrators, Tanzania could consider identifying the individual companies that had their financial statements audited.
- To strengthen implementation of Requirement 5.1, Tanzania is encouraged to systematically disclose more disaggregated data on government extractive revenues.
- To strengthen implementation of Requirement 5.2, Tanzania is encouraged to reconsider the applicability of Requirement 5.2 in future EITI reports in case there are subnational transfers of extractive revenues.
- To strengthen implementation of Requirement 5.3, Tanzania is encouraged to publish information related to projections and assumptions underpinning the budget or forecasts about future budgets or fiscal revenues.
- To strengthen implementation of Requirement 6.4, Tanzania is encouraged to document actual practice related to environmental management legal and administrative provisions and to publish EIAs on government websites.
The government and all stakeholders are encouraged to consider these recommendations, and to document Tanzania’s responses to these recommendations in the next annual review of outcomes and impact of EITI implementation.
In June 2020, the EITI Board agreed that Tanzania had made “meaningful progress with considerable improvements” in implementing the 2016 EITI Standard. The next Validation of Tanzania was scheduled to commence on 17 December 2021. In December 2020 and October 2022, the EITI Board agreed revisions to the Validation schedule, with Tanzania’s Validation scheduled to commence on 1 April 2023.
Tanzania EITI collated documentation for Validation using the Board-agreed data collection templates on Stakeholder engagement, Transparency, and Outcomes and impact. The files are available on the Tanzania EITI website. The International Secretariat’s Validation team prepared an initial assessment following the Validation procedure and Validation Guide. In accordance with the Validation procedure, a public call for stakeholder views on EITI implementation was open from 30 January 2023 to 1 April 2023. Stakeholder consultations were undertaken virtually in April 2023. The draft assessment was shared with the MSG for feedback on 28 July 2023. The MSG comments were received on 25 August 2023. The International Secretariat reviewed the comments and responded to national stakeholders, before finalising the assessment.
In accordance with Article 4.c of Section 4 of the 2019 EITI Standard, the overall assessment consists of component scores on Stakeholder engagement, Transparency, and Outcomes and impact, as well as an overall numerical score. The component score represents an average of the points awarded for each applicable requirement. The points awarded on the effectiveness and sustainability indicators are added to the component score on Outcomes and impact. The overall score is the average of the three component scores.
Assessment of EITI requirements
- Not met
- Partly met
- Mostly met
- Fully met
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The three components of Validation each receive a score out of 100, as follows:
Outcomes and impact