The Policy Forum (PF) is a network of over 60 Tanzanian civil society organisations drawn together by their specific interest in augmenting the voice of ordinary citizens to influence policy processes that help in poverty reduction, equity and democratization with a specific focus on public money accountability at both central and local levels. Policy Forum’s long term impact is “Contribution to enhanced governance and accountable use of public resources by improving civil society capabilities and opportunities to influence and monitor policies.”
HakiMadini is a Tanzanian not for profit organization engaged in mining sector policy advocacy and community development. HakiMadini supports communities impacted by mining and small-scale mining sub-sector to receive recognition and earn rightful space in the mining sector development. Over the last decade, HakiMadini has fought for community inclusion in mineral sector decision making, protection of community land, civic education and protection of human rights in Tanzania.
Since the early 2000s, Tanzania’s mining sector has witnessed a consistent change in its regulatory environment meant to strengthen the fiscal regime. Significant changes have also been realised since 2017 whereby new fiscal regimes have been introduced targeting to accelerate payment of taxes, restrictions on the carry-forward tax losses and right of deduction for rehabilitation expenditure. Notably, in 2017, the national assembly passed under the certificate of urgency three-piece of legislations. The Laws have a significant implication for the Mining Fiscal Regimes in particular. These include; the introduction of a 1% inspection fee; empowering the GoT to acquire at least 16% Free Carried Interest in the capital of the mining investment (Special Mining Licence and Mining Licences) operating in the country, with the option to acquire up to 50% and increase royalties at the rate up to 6%, Also, in 2019 the mining and other financial Acts were amended to exempt Artisanal and Small-Scale Miners (ASM) with Primary Mining License (PML) from paying Value Added Tax (VAT) which was 18% and also Withholding Tax which was 5%. etc.
In this regard, Public anticipation is that accrued revenues will be allocated/distributed by the government based on the priority set by the citizens/communities around the mining operation and financing of the Public Service Delivery. Furthermore, more benefits to invest will be captured by the Tanzanians such as livelihood diversification through employment, backward and forward linkages, and skills development.
Generally, revenue, expenditure control and accountability are guided by The Public Finance Act, of 2001 requiring all revenues (including those raised from extractives) to be deposited into the Consolidated Fund (CF) which then can be drawn and allocated into various budget votes by the Ministry of Finance as guided by the Appropriation Act, 2019. Once mining-related funds are put into the CF, it can be challenging to track the extent of their distribution across different social groups.
Currently, Tanzania does not have a formula or mechanism for mineral revenue redistribution. As stated, in Tanzania, all minerals (and other natural resources) are owned by the united republic of Tanzania (belong to all Tanzanians) thus limiting the need to redistribute a specific percentage of revenue to communities surrounding mine sites. This is to ensure that there is even distribution across Tanzanians. There are, however, sorts of affirmative action to the local communities such as service levy, corporate social responsibility (CSR) which were introduced specifically to enable local community development.
Mining companies are required to contribute to local economic and infrastructure development in the areas where they operate. This requirement is not expressly provided in the law even though in some cases, social investment has been an element of Mineral Development Agreements (MDA’s). Mining companies supply a wide range of social services through corporate social responsibility (CSR). Typical areas of investment are infrastructure, education, health care and local business development.
This research thus aims at analyzing transparency in the collection of mining levies and how the local communities are engaged and involved in the distribution of the same.
Aim of the Study
The study aims to provide an in-depth analysis to the extent to which local communities (Mara and Geita) are engaged and involved in the extractive chain, a focus being transparency in the collection and how the local communities are involved in the distribution of the levies from their natural resources (mining).
The study shall be guided by various main assessment criteria to benchmark local communities’ participation or/and engagement in the extractive sector in the traditional and non-traditional extractive industries.
In the context of the legislative framework covering revenue management, the study shall also provide an analysis of opportunities (spaces) that have been created by the law to provide avenues for engaging local communities in the extractive sector in the country. The extent to which these spaces have been utilised shall be critically assessed.
Policy Forum and HakiMadini, therefore, wish to recruit a consultant to undertake a study entitled: ‘Transparency and Citizens’ Participation In the Collection and Distribution of Mining Service Levies at the local level. A Case Study of Geita and Mara.’
To explore transparency and citizens’ participation in the collection and distribution of mining service levies at the local level in Geita and Mara.
The consultant shall be guided by the following specific objectives:
- Analyse how local communities are involved in mining revenues collection and distribution.
- Assess to what extent are different social groups benefiting from the mining revenues
- Probe how the current policy and legal framework regulating the extractive sector address the participation and engagement of local communities.
- Assess the level of local communities’ literacy on revenue collection and allocation of mining service levy and recommend capacity needed.
- Make recommendations for policy and legal reforms to allow full and effective local communities’ participation in decision making in revenue collection and allocation.
The consultant is expected to provide a draft report of the analysis to Policy Forum within 30 days after being engaged. Specifically, the consultant will be required to prepare and submit the following:
- An Inception report together with the approach and work plan
- To identify areas that need further research (knowledge gap) related to the research parameters.
- Prepare a comprehensive research draft report and submit it to Policy Forum and HakiMadini for review.
- Incorporate all inputs and comments from subsequent validation to improve the quality of the report.
- Prepare and submit a final comprehensive research report to PF and HakiMadini
- Prepare presentation and present the findings to stakeholders including the Ministry of Minerals, CSOs and local communities’ representatives.
The research approach should ensure special effort is made to obtain information from and about local communities employing but not limited to the following methodology:
- A systematic review, employing scientific procedure of data collection, compilation, analysis and interpretation about the research title.
- Both applied and fundamental mode of data collection and analysis is expected for the study; while maintaining all the record for validation purpose.
- Robust analysis based on investigation and examination of events, activities, forums and deliberations, to pin down relevant information on issues of interest, to enhance the quality of the research findings.
- Conduct a validation meeting to gather opinions, views and comments from key stakeholders to improve the quality of the report, as well as validate and approve the report for use by stakeholders and other interested parties.
- Bachelor degree in social science or Research or any related field.
- At least 5 years experience in conducting research and/or analysis, preferably in the extractives sector.
- Experience in designing tools, data collection, statistical analysis, qualitative methodology.
- Strong grasp of the Tanzanian extractive sector and its local contexts.
- Previous experience working with other similar like-minded organisations.
Accountability and Administrative Arrangements
The consultant will work under the supervision of PF and HakiMadini Project Officers and will report the progress of the study weekly to the same.PF and HakiMadini will provide all necessary administrative assistance and logistical support related to the study.
Proposal Submission Requirements
Interested candidate should submit a brief proposal with a background, understanding of assignment, theoretical review, the methodology, budget and proposed work plan. The application should also contain CVs of the Consultant(s) and sample of previous similar evaluation conducted.
ALL applications should be sent not later than 16th February 2022 to the email address: firstname.lastname@example.org
Please note: Due to large number of applications, only shortlisted candidates will be contacted
P.O Box 38486, Dar-es-Salaam.