DODOMA: DEPUTY Prime Minister and Minister for Energy, Dr Doto Biteko, has called on stakeholders in the extractive industry to prioritise discussions that identify and address both the opportunities and challenges facing the sector, ultimately maximising its potential.
Speaking at the opening ceremony of the 2024 Extractive Sector Forum on Tuesday in Dodoma, Dr Biteko said that the success of stakeholders in the extractive industry depends on how they share information to explore opportunities and address challenges collaboratively.
“Be open and share factual information, as it will guide you toward prosperity,” Dr Biteko said.
“It is also essential to consider the threats posed by natural disasters, such as earthquakes and examine their potential impact on the development of the extractive sector.”
Dr Biteko pointed out the alarming trends in global seismic activity, noting that earthquakes worldwide have increased from nine cases in 1950 to 51 in 1970 and 150 by 1990.
These statistics, he explained, underscore the need for experts in the extractive sector to develop long-term strategies to respond to the increasing frequency of natural disasters in Africa.
The minister also urged stakeholders to reflect on how individual contributions toward global sustainability are critical in light of the devastating environmental threats posed by fossil fuel consumption.
He noted that the average American uses the equivalent of 22 barrels of petroleum products annually, while the average African uses significantly less, highlighting the disparity in global consumption patterns and their environmental impact.
The forum’s theme was “The Extractive Sector, Sustainable Development and the Energy Transition in Tanzania.” The extractive sector includes minerals, oil and gas.
Dr Biteko reiterated the government’s commitment to ensuring that the extractive sector contributes 10 per cent of Tanzania’s Gross Domestic Product (GDP) by 2025.
He confirmed that the country is on track to meet this target. In his speech, Dr Biteko also noted significant progress in the energy sector.
He said that the government has made substantial investments in power generation, increasing installed electricity capacity to 2,607.96 megawatts (MW) in the current year, up from 1,605.86 MW in 2021 representing a 62 per cent increase.
He specifically mentioned the Julius Nyerere Hydropower Plant Project (JNHPPP), which, upon completion, is expected to add 2,115 MW to the national grid.
Currently, the project has reached 99.21 per cent completion and is already generating 1,172 MW. Additionally, the government has expanded the power transmission network to 7,745.4 kilometres, up from 6,111.27 kilometres in 2021, an increase of 26.7 per cent.
The power distribution network has also grown, now extending to 187,817.3 kilometres, compared to 153,988.49 kilometres in 2021, representing a 21.9 per cent increase.
Meanwhile, Minister for Minerals, Mr Anthony Mavunde said that the government’s budget for the Ministry of Minerals has more than doubled in the 2024/2025 financial year, increasing from 89bn/- in the 2023/2024 to over 200bn/- in a bid to transform the extractive sector.
Mr Mavunde also mentioned the ongoing comprehensive geological surveys and efforts to empower small-scale miners to unlock their full potential.
He pointed out that small-scale miners contributed 40 per cent of the mining sector’s revenue to government coffers in the previous financial year and the aim is to reach 1tri/- by the end of the current fiscal year.
In addition, Mr Mavunde said the government is undertaking strategies to ensure the full exploitation of critical minerals, including graphite, which are abundant in Tanzania.
Chairperson of the Parliamentary Standing Committee for Minerals and Energy, Mr David Mathayo, expressed satisfaction with the high level of transparency demonstrated by stakeholders in the extractive industry.
He urged the government to continue supporting small-scale miners, particularly by providing them with modern technology to eliminate illegal mining practices, such as the use of mercury.
The Extractive Sector Forum serves as a platform for development stakeholders to exchange knowledge and experiences.
