Why GGML commits more funds to develop Geita communities
On 21st March 2023, Geita Gold Mining Limited (GGML) signed a Memorandum of Understanding (MoU) worth 19bn/- with Local Government Authorities namely the Geita Town and District Councils as well as the neighbouring Councils of Chato, Bukombe and Mbogwe relating to the company’s commitment in terms of Corporate Social Responsibility (CSR) for the period of 2022/2023. Right!
This might attempt one to ask-what is Corporate Social Responsibility? In a nutshell, it is the idea that a company should play a positive role in the community and consider the environmental and social impact of business decisions or simply bringing value to the community and generating a positive impact.
In this case recently, the company in the breakdown budgeted a total of 9.8bn/- for the Geita Town Council and 8.6bn/- for Geita District Council. In the agreement, GGML will also provide a total of 600m/- to implement development projects for the three councils of Mbogwe, Chato and Bukombe in Geita whereby each will receive 200m/-.
Presiding over the MoU signing ceremony, Geita Regional Commissioner, Honourable Martin Shigella was accompanied by regional and district authorities as well as other stakeholders.
Speaking during the event, GGML Acting Managing Director, Elder Damon said, “This MoU is momentous and reaffirms our commitment to the host communities, the Government of Tanzania and its people through compliance with the requirements of the Mining Act that includes mineral right holder’s Corporate Social Responsibility Plan.”
He added that the GGML’s CSR plan is a continuation of previous plans and seeks to consolidate the progress made by the company to date in the areas of environment, infrastructure, health, education and small and medium enterprises (SMEs) in Geita host communities.
He continued: “It personally gives me great joy to witness firsthand the ripple effect of successful projects in the lives of Tanzanians, particularly those residing around the mine.”
GGML remains the most compliant and top taxpayer in the country’s extractive industry with over 5.64tn/- in taxes borne and paid to the Government between the year 2000 and 2022.
In his remarks, the Vice President of AngloGold Ashanti, Simon Shayo, who oversees sustainability in Ghana and Tanzania, said many people do not know that before the mining law of 2010 which was amended in 2017, GGML was already implementing a CSR program by providing more than 9bn/- to finance various community projects in Geita Region.
“Even after introducing the element of corporate social responsibility, we (GGML) were the first to do so because every year we used to spend at least 9.2bn/- to 10bn.” said Shayo.
Meanwhile, the Geita Regional Commissioner said it was a great pleasure to witness the event taking place during the period in which the country was celebrating two years of success of the Sixth Phase Government under the leadership of President Dr. Samia Suluhu Hassan.
He also commended GGML for establishing a credible CSR Plan and urged other stakeholders in the mining industry to follow suit in which he pledged continued support from the Government.
“We, as the government, promise to continue to provide cooperation to all investors in the country, including mining companies, in order to reach and possibly exceed the goal of the mining sector to contribute 10 percent of the country’s gross domestic product (GDP) by 2025,” said the Geita Regional Commissioner.
Since its inception, GGML has been working closely with the local government authorities to support a number of community projects in the Geita region through Public-Private Partnerships as well as National programmes.
In November 2022, GGML was recognised by the Tanzania Revenue Authority as the most compliant taxpayer in the country’s mining industry while in December 2022, the Company scooped two accolades at the Association of Tanzania Employers (ATE) Awards: first place in its implementation of Corporate Social Responsibility and 2nd Runners Up amongst Best Private Sector Employers.
