Dynamic Business Environment in the Tanzanian Mining Sector

Abstract

Developing countries strive to market their business environments so as to attract investment. However, the business environment is always dynamic and full of uncertainties. This article investigates the dynamic environment of the mining sector, highlighting on the case of Barrick Gold Corporation, Anglo Gold Ashanti and Shanta Gold which are the three dominant mining companies in Tanzania. The study also uniquely encompasses the Tanzanian Government position in instituting the changes in policy in efforts to improve the citizen's welfare and boost the revenues emanating from the sector. A qualitative design was used in this paper and findings indicate that the mining environment in Tanzania is very favorable for investors, although few un-honest government officials have used the loopholes in the legal framework to benefit out of the situation. Lessons are learnt from the investor's perspective and the government side and constructive dialogue is on the way to ensure that concerns from both parts are encompassed so as to attract further investment in the extractive sector and to ensure that the mining FDI abide to the laws without any potential room for deviating. Finally, the study predicts a bright future for Tanzania mining sector due to remarkable infrastructure projects that are under way including; the standard gauge project, hydroelectric power station and roads. These projects are likely to lower the costs of operation to the potential mining companies.