Uranium for the Rich, Contaminated Land for the Poor

Photo: Sun setting over Lake Tanganyika, Kigoma, Western Tanzania

The announcement that Tanzania has substantial deposits of uranium may or may not be good news. The country already exports a lot of gold but receives little benefit from this. There are so many subsidies and benefits for foreign miners operating there and so little capacity for enforcing proper overview of what is being extracted and exported that the only people who benefit are the big mining operators themselves. Employment in mining has dropped to a fraction of previous levels, so the industry probably represents a net loss to the country.

Why should uranium mining be any different? Large scale mining will employ very few people, will be capital intensive, will cause a lot of environmental damage, the usual story. There is a lot of talk about new laws but it is more likely that the mining operators will be allowed to come in, take what they want, do as much damage as the always do and leave the mess for Tanzanians to clean up or put up with. All the good resolutions being made now about proper regulation mean nothing when countries like Tanzania have virtually no regulatory power because of ubiquitous excuses such as the need for 'deregulation' and 'free markets'.

Countries like Tanzania need regulation and they need to be able to enforce regulation to protect people from the sort of exploitation that they have suffered since the beginning of Western invasions of the African continent. If the market is to be free, Tanzanian mining operators, ones owned by Tanzanians, not just with a few Tanzanian board members, need to be able to avail of the benefits that foreign miners receive. And the country needs to be able to audit operations to the extent that they get their fair share of royalties and other levies. So far, large scale extractive industries have only benefitted rich people and big companies while the majority of poor people lose out and end up worse off than they were previously. Sphere: Related Content

Converting Food for Africans into Fuel for Westerners

Photo: Arusha Market (from IRIN)

The Tanzanian government has allocated TSH1 billion to an irrigation project in Singida to 'boost agriculture'. This would be very welcome if it really were intended to improve food security and avoid famine. But I can't help suspecting that biofuels production will be one of the main beneficiaries of these irrigation projects.

Of course Tanzania needs to be able to ensure that enough food is produced to feed people and to have a surplus for export. But the last thing the country needs now is to lock itself into deals where it is obliged to produce crops that will be converted into fuel for the greedy and wasteful minority world in the West.

There is also mention of the need to mechanise farming practices, which is all very well, but what will the millions of people engaged in subsistence farming do when the land is bound over to foreign operators? About 85% of Tanzanians depend on subsistence agriculture in some way. In what way will these irrigation projects benefit the majority?

There is a danger of such projects merely moving the drought problem around so that the little water available is wasted on running cars in foreign countries rather than in producing food for Tanzanians. Sphere: Related Content

Penetrative Theft

Photo: A view of Mwanza, North Western Tanzania.


Tanzania is the third largest producer of gold in Africa. Does this mean that the country receives lots of revenue from this massive industry and that hundreds of thousands of people are employed extracting gold? No, most people are poor and only a few thousand people are employed in the industry now.

In fact, the government gives so many tax breaks and other benefits to foreign miners that even politicians, who usually make lots of money even when their electorate remain poor, don't make that much from gold. Well, I'm sure they do ok, but for some strange reason, they seem happy to watch the country's gold being raided by these foreign operators.

In addition to demanding low royalties from foreign companies, the country is losing out because gold had traditionally been labour intensive. Now, with high technology extractive processes, employment is minimal, most of the big earners are not Tanzanian and the majority of workers are paid very low wages. Several hundred thousand former artisan miners are unemployed as a result of these foreign companies taking over.

Much of the Tanzanian government's thinking on the industry seems to have been shaped by the bizarre strictures of the International Monetary Fund and the World Bank, who insist on low taxes, low royalties, incentives for foreign 'investment' and various de facto subsidies that are not available to any Tanzanians who might otherwise be able to get into the industry. As a result, Tanzanians haven’t a hope of being to compete, competition only being a good thing when the odds are stacked against them, it seems.

The biggest operators in Tanzania, Canadian Barrick Gold and South African AngloGold Ashanti, appear to be making huge amounts of money by these various deceits. But those who can do anything about this don't seem interested in intervening. The above international financial institutions don’t actually see any problem in such iniquities. The Canadian and South African governments could intervene, though they may not see this as being in their interest. But I don't understand why the Tanzanian government has for so long failed to right this terrible injustice.

In addition to this assault on the Tanzanian economy and the welfare of Tanzanians, the international financial institutions, multinational extractive operators and others involved don't seem to have any respect for democracy or human rights. In the long term, extractive industries cause immense environmental damage, the consequences of which will be borne by Tanzanians.

National and international laws need to protect people and prevent multinationals from destroying whole communities and defrauding sovereign countries. They should also prevent irreversible destruction of environments, which will probably affect future generations more than present generations. Rich country governments who are profiting from these industries, along with the powerful but unelected and unaccountable members of international financial institutions, also have a duty to see that these laws are properly policed.

Sadly, Tanzania is not the only country in Africa where this sort of exploitation is taking place. In fact, most African countries with natural resources that are highly valued by the West are being similarly plundered: Ghana, Democratic Republic of Congo, Nigeria, the list goes on. But Tanzania is one of the few where Western governments didn't have to oversee a war in order to take what they wanted. For some reason, the Tanzanian government is far more compliant that some other African administrations. Sphere: Related Content