The United Republic of Tanzania Prime Minister’S Office
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THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE NATIONAL ECONOMIC EMPOWERMENT COUNCIL REPORT OF THE TANZANIA LOCAL CONTENT FORUM HELD AT THE BANK OF TANZANIA CONFERENCE CENTRE (MT. KILIMANJARO AUDITORIUM), DAR ES SALAAM ON 21st AND 22nd JULY, 2016 Prepared by; National Economic Empowerment Council (NEEC), 12 Kivukoni Front, P.O Box 1734, Dar es Salaam Tel: +255 22 2137362 Fax: +255 22 2125596 Email : [email protected] Website : www.uwezeshaji.go.tz 1 TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS ..................................................................................................... 4 1.0 INTRODUCTION ............................................................................................................................ 6 1.1 BACKGROUND .............................................................................................................................. 6 DAY ONE-21st JULY, 2016 ......................................................................................................................... 8 2.0 OPENING SPEECHES .................................................................................................................... 8 2.1 WELCOMING REMARKS BY MRS. BENG’I ISSA, THE EXECUTIVE SECRETARY OF THE NATIONAL ECONOMIC EMPOWERMENT COUNCIL ............................................................ 8 2.2 WORD FROM THE MAIN SPONSOR OF THE FORUM AFRICAN RISK INSURANCE SERVICES (ARIS) GROUP MANAGING DIRECTOR ........................................................................ 8 2.3 STATEMENT FROM THE CHAIRMAN OF THE TANZANIA PRIVATE SECTOR FOUNDATION (TPSF) DR. REGINALD MENGI ................................................................................. 9 2.4 INTRODUCTORY REMARKS BY THE PERMANENT SECRETARY, PRIME MINISTER’S OFFICE DR. HAMIS MWINYIMVUA ......................................................................... 10 2.5 OPENING REMARKS BY THE GUEST OF HONOUR - MINISTER FOR STATE PRIME MINISTER’S OFFICE - HON. JENISTER MHAGAMA (MP) ............................................................ 10 3.0 PANEL PRESENTATIONS ........................................................................................................... 11 3.1 MINISTERIAL PANEL ............................................................................................................. 11 3.1.1 Ministry of Energy and Minerals ........................................................................................ 11 3.1.2 Ministry of Works, Transportation and Communications .................................................. 12 3.1.3 Ministry of Information, Culture, Arts and Sports .............................................................. 13 3.1.4 Prime Minister’s Office -Labour, Youth, Employment and People With Disabilities ....... 14 3.1.5 Ministry of Industries, Trade and Investments. .................................................................. 15 4.0 DRAFT LOCAL CONTENT TRACKING TOOL BY JACKSON GROUP ................................ 16 5.0 PANEL SESSIONS ........................................................................................................................ 16 5.1 DEVELOPMENT PARTNERS AND INVESTORS PANEL ................................................... 16 2 5.2 HOST COMMUNITY ENGAGEMENT PANEL...................................................................... 18 5.3 LOCAL CONTENT IN PROCUREMENT AND EMPLOYMENT ......................................... 21 5.4 LESSONS LEARNT INTERNATIONAL PANEL ................................................................... 23 5.5 LESSONS LEARNT (LOCAL INVESTMENTS AND OPPORTUNITIES) ........................... 26 6.0 GOVERNMENT EFFORTS IN INVOLVING THE PRIVATE SECTOR ................................... 28 7.0 WAY FORWAD ............................................................................................................................. 28 8.0 CLOSING OF THE FORUM ......................................................................................................... 30 ANNEXES .................................................................................................................................................. 31 ANNEX I .................................................................................................................................................... 31 MODERATORS AND PANELISTS ......................................................................................................... 31 ANNEX II ................................................................................................................................................... 33 LIST OF PARTICIPANTS: ........................................................................................................................ 33 Chief Executive Officer .............................................................................................................................. 33 ANNEX: III ................................................................................................................................................ 45 RAPPORTEURS – NEEC STAFF ............................................................................................................. 45 ANNEX: IV ................................................................................................................................................ 46 LOCAL CONTENT FORUM SPONSORS ............................................................................................... 46 3 ACRONYMS AND ABBREVIATIONS AfDB: African Development Bank NHIF: National Health Insurance Fund AGA-GGM: AngloGold Ashanti - Geita NRGI: Natural Resource and Gold Mine Governance Institute ARIS: African Risk and Insurance Services NSDS: National Skills Development ATE: Association of Tanzania Strategy Employers OGAT: Oil and Gas Association of BOT: Bank of Tanzania Tanzania CCM: Chama Cha Mapinduzi PMO: Prime Minister’s Office CTI: Confederation of Tanzania PPP: Public-Private Partnership Industries PPRA: Public Procurement Regulatory CRB: Contractors Registration Board Authority COSTECH: Tanzania Commission for PURA: Petroleum Upstream Regulatory Science and Technology Authority DIT: Dar es Salaam Institute of PWDs: People with Disabilities Technology REA: Rural Electrification Agency DSE: Dar es Salaam Stock Exchange REPOA: Research and Poverty EEVT: Enhanced Employabiity in Alleviation Vocational Training SAGCOT: Southern Agricultural Growth ESRF: Economic Social Research Corridor of Tanzania Foundation SME: Small Medium Enterprises EU: European Union TCCIA: Tanzania Chamber of EWURA: Energy and Water Utilities Commerce, Industry and Regulatory Authority Agriculture FDIs: Foreign Direct Investments TDV: Tanzania Development Vision GDP: Gross Domestic Product 2025 GNT: Government Negotiation Team TASU: Tanzania seafarers`union GPN: General Procurement Notice TIC: Tanzania Investment Centre ICS: International Citizen Services TIRA: Tanzania Insurance Regulatory ILFS: Integrated Labour Force Survey Authority LC: Local Content TIMAP: Tanzania Informal Microfinance LNG: Liquefied Natural Gas Association of Practioners M.P: Member of Parliament T-LED: Tanzania-Local Enterprise MEM: Ministry of Energy and Development Minerals TMAA: Tanzania Minerals and Auditing MITI: Ministry of Industry, Trade and Agency Investment TNBC: Tanzania National Business NDC: National Development Council Corporation TANROAD: Tanzania National Roads NEEC: National Economic Agency Empowerment Council TanTrade: Tanzania Trade Development NEMC: National Environment Authority Management Council TIBA: Tanzania Insurance Broker NIT: National Institute of Transport Association NHBRA: National Housing Building and TPDC: Tanzania Petroleum Research Agency Development Corporation 4 TIRDO: Tanzania Industrial Research and Development Organization TPSF: Tanzania Private Sector Foundation TSP: Tanzania Steel Pipes Limited TYC: Tanzania Youth Coalition UNDP: United Nations Development Programme VETA: Vocational Education and Training Authority VICOBA-FETA: Village Community Bank Federation of Tanzania VSO: Voluntary Services Overseas YEE: Youth Economic Empowerment 5 1.0 INTRODUCTION 1.1 BACKGROUND In 2004 the Government of Tanzania developed the National Economic Empowerment Policy which aimed to increase the participation of Tanzanians in building the economy of their country to achieve the Tanzania Development Vision 2025. The Policy sets various strategies to achieve this goal which includes amongst others the establishment of the National Economic Empowerment Council to oversee the implementation of the Policy. The National Economic Empowerment Council (NEEC) is a Government institution established under the National Economic Empowerment Act No. 16 of 2004. NEEC has the mandate of implementing the National Economic Empowerment Policy of 2004 by supervising, coordinating, and monitoring all economic empowerment activities. Among other things NEEC is required to spearhead Local Content initiatives in all sectors of the economy to ensure effective participation of the majority of Tanzanians in Foreign Direct Investments, large domestic investments and international contracts. Recently, there has been tremendous growth of investments in the oil and gas sector in various countries in Africa. In Tanzania the discovery of natural gas was made in 2010 in the offshore of the southern part of the country. This discovery is expected to attract massive foreign investments in the region. In order to ensure that Tanzanians benefit