Tanzanian export ban unlikely to drive investors away

Subject

Tanzania metal ore export ban.

Significance

On March 2, the Tanzanian government announced it had banned export of metal ores by international mining companies, in what firms see as part of a continuing attack on the extractive industries sector. The government has attempted to negotiate increased tax bills, or settlement of unpaid ones, and has repeatedly threatened to take a greater slice of revenues.

Impacts

• Donor criticisms of the ban will be muted but further restrictive measures would cause concern.
• Mining sector employment could be damaged in the short term as investment shifts to developing smelting capacity over expanding production.
• Magufuli’s popularity is likely to persist and he will be projected as a champion against exploitative foreign interests.