As we know, Tanzania is rich in a diverse array of minerals, gemstones, gold, uranium, copper, gas, to mention a few. To note that Tanzania is the third-largest gold producer in Africa. Although large-scale foreign investment is a relatively recent phenomenon, gold exploration and mining have a long history in the country. The Mining Sector has gone significant changes in recent years in Tanzania. The key development has been the enactment of the  Written Laws (Miscellaneous Amendments) Act (7/2017) which brought significant changes to the Mining Act, including the introduction of the Mining Commission, which is tasked with the overall regulation of the mining industry in Tanzania, including the issue and cancellation of licences.

It is key to note that a mining licence or permit is required at various stages of a mining companies life. At Lion Consulting, we have helped various mining companies set up their operations in Tanzania. Our experience in this field includes:-

• Acted for leading mining companies to ensure compliance of special mining licences, mining licences, prospecting licences amongst other licences under the Mining Act and its regulations.

• Acted on behalf of Amani Gold in the establishment of their mining operations in Tanzania; and
• Acted on behalf of Elves Graphite, a Koren graphite mining company establish their presence in Tanzania.

Through the constant change of the mining laws in Tanzania, Lion Consulting advises operators in the mining industry and anyone who wishes to set up their establishment in Tanzania to seek proper advise beforehand, especially after the introduction of local content regulations in the sector.

The Tanzania Government has pledged to improve the business environment and ease of doing business in Tanzania. This pledge and commitment is aimed at increasing the levels of foreign direct investments into Tanzania^[1]. In a show of commitment to this pledge, the government tabled an Amendments Bill for several laws in the on going House session, including the Companies Act and the Non-Citizens (Employment Regulation) Act. The proposed changes are contained in the Written Laws (Miscellaneous Amendments) Bills numbers 2 and 4.  In the proposed amendments by the Written Laws (Miscellaneous Amendments) (No 4) Bill 2021 includes the following:

1. Proposed to amendments to extend the time limit for non-citizens willing to work in Tanzania from five (5) years to eight (8) years;
2. The Amendment to allow any company that has been registered with the Tanzania Investment Centre or Export Processing Zone Authority to employ up to ten non-citizens without the need of complying with the rigorous requirements of the Non-Citizens (Employment Regulations) Act;
3. Amendment to entitle an investor to employ any number of non-citizens for as long as he complies with the quota of 1 non-citizen employed to 10 locals employed, and further justifies to the Labour Commissioner that the nature of his business requires the employment of a large number of non-citizens;
4. Amendment to ensure that there is a simplified and improved manner of issuing work permits to non-citizen workers as an incentive to foreign and local investors who have decided to employ non-citizens; and
5. Amendment to enable the Minister to make Regulations which shall regulate the manner and processes of issuing work permits and incentives to investors.

As noted in the Objects and Reasons attached in the Schedule of Written Laws (Miscellaneous Amendments) (No 4) Bill 2021, the proposed changes are explained by the Government as follows:-
Part VIII proposes for Amendment of the Non-Citizens (Employment Regulations) Act. Cap. 436 with a view to ensuring that there is a simplified and improved manner of issuing work permits to non-citizens worker as incentive to foreign and local investors who have decided to utilize non-citizen employees. It is proposed to amend section 12 in order to extend time limit for applicants willing to work in the Country from the current five years to eight years, which, the applications have to be done on a renewal basis from every twenty-four months. Further to that, the proposed amendments empower the Labour Commissioner to attach conditions to work permits with finality effect depending on a number of circumstances, one being the request by the applicant to stay in the country for a specific period of time. It is proposed to repeal and replace section 19 of the Act in order to provide special incentives to investors. The proposed amendments extend the immigrant quota from the current five employees to ten employees who

^[1] http://www.xinhuanet.com/english/2019-02/07/c_137805184.htm

shall stay in the country working during the whole period of investment. Further that the investor employing ten local employees shall also be entitled to employ one non-citizen employee. It is proposed to amend of section 22 of the Act to enable the Minister to make Regulations that shall regulate the manner and processes of issuing work permits and incentives to investors”.

Lion Consulting does commend the Government of taking this initiative in improving the business environment in Tanzania. We believe that these proposed amendments if passed shall lead to more foreign direct investments in Tanzania.