How Zanzibar hopes to promote economic growth with mining law

How Zanzibar hopes to promote economic growth with mining law

Unguja. Zanzibar’s Ministry of Water, Energy, and Minerals is preparing to introduce a new mining law as part of the island’s strategy to manage its natural resources transparently and ensure they contribute directly to the country’s economic development.

The proposed law is a critical part of Zanzibar’s broader effort to manage its resources effectively, ensuring they have a positive impact on both social and economic growth.

Currently, Zanzibar does not have a dedicated mining law. Instead, the island relies on the 2015 Environmental Law, which is overseen by the Office of the First Vice President.

Mr Said Haji Mdungi, the Director of Energy and Minerals, made this announcement on November 27, 2024, while opening a one-day training session for district commissioners and local government leaders from municipalities and councils across Zanzibar.

Mr Mdungi highlighted the need for a mining law, noting that recent studies have revealed the presence of various minerals beneath Zanzibar’s soil. This discovery has prompted the government to take proactive steps toward developing appropriate legislation.

“The new law will provide a framework for regulating minerals and other resources independently within the sector. I urge leaders to handle this matter with professionalism,” Mr Mdungi stated.

He added, “It is crucial that Zanzibar has a dedicated mining law. This law must involve all stakeholders before it is finalised so they can share their input.”

The proposed law aims to enhance the management of Zanzibar’s mining sector by regulating the extraction, transportation, and prevention of illegal mining activities. Additionally, it seeks to encourage the value addition of minerals before export.

“As regulators, we are aligned with the pace of the eighth-phase government’s development plan to bring progress to the people of Zanzibar and Tanzania as a whole,” Mr Mdungi said.

He emphasized that for effective protection of non-renewable resources, it is essential for district commissioners and local government leaders to collaborate closely in managing these resources.

During the training, a legal expert from the ministry, Mr Hakimu Mohammed Ame, explained that the issue of mining and resource extraction affects everyone, and therefore, leaders have a responsibility to educate the public on how to safeguard these valuable resources.

“District commissioners, as chairpersons of the district security and safety committees, have a direct responsibility to manage these issues within their districts,” said Mr Ame.

He also noted that while existing laws have become outdated, efforts are underway to update them to better align with current challenges.

On their part, both the District Commissioner of South Zanzibar, Othman Ali Maulid, and the District Commissioner of North A, Rashid Simai Msaraka, assured that they would serve as ambassadors to educate the public and effectively implement both current and future laws.

Mr Msaraka further emphasised the importance of these resources, particularly for the youth, who are the primary beneficiaries of this initiative.

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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
Tanzania Foreign Investment News
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms

President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.

Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).

Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.

While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.

“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”

Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.

Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.

“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”

ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition

On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.

He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:

At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.

There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.

Source: allafrica.com

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