When it comes to the effort of making sure there is prosperity in the country’s economy, local content is one of important aspect to be considered. It goes that local content is a mechanism of which the developed countries have adopted to capture as much revenue as possible from extractive sectors in order to expand other economic sectors, such as agricultural and manufacturing. In 2017 the government overhauled the country’s mining legal framework by enacting new or amending existed laws to strengthen the governance of the mining sector by introducing local content requirements.[i] The introduced requirements have gained popularity in the country over recent years as they are binding foreign mining companies conducting activities in Tanzania, one of those requirements is the purchase of local goods. However, there are legal challenges of implementing the same in line with the established principles under international trades agreements, such as principle of national treatment against discrimination.
The objective of this study is to test the implementation of local content requirement of purchasing local goods in relevance of international principles regulating trades agreements between states, pointing out existing pitfalls and recommend possible measures to be taken.
[i] The overhaul resulted to the enactment of new legislations: The Natural wealth and Resources (Permanent Sovereignty) Act, 2017; The Natural Wealth and Resources Contracts (Review and Negotiation of Unconscionable Terms) Act, 2017; and The Written Laws (Miscellaneous Amendments) Act No. 7, 2017.
