Tanzania, April 10 – Tanzania and Kenya could have been the darling of ease of doing business in East Africa, but investors in the mining sector are not convinced about their mining state of affair. The two countries have not been able to deliver to the pedigree of the potential investors due to a number of factors standing between them.
Fraser Institute, an independent non-partisan research and educational organization based in Canada, has ranked the two states as the worst destinations for any miner to be wary off. The Canadian public policy think tank has not spared the details as well to the ranking of the two East African countries having cited already a number of reasons the mining sector in the two nations are not surprisingly low.
Tax evasion has been a major scandal in Tanzania, a major case that has miners worried about the sector. Acacia Mining Company, a gold miner in the Sub-Saharan nation got into the bad books when it hit headlines concerning tax evasion in its operations in the country. Other scandals came up with the in-depth coverage of the story as it unfolded, giving a bad reputation both for the country and the company.
Kenya on the other end has not been a performing nation, in as much as it tries to keep pace in the economic growth. According to Fraser Institute, the country is the worst destination in Africa and the second worst in the world. The country’s reformations have not resonated well with the industry players thus not attracting their attention to play a role in the economic growth.
Tanzania has taken the initiative to look into the mining laws to make the necessary adjustments to revive the sector and ensure they derive as much from it, fighting corruption and fixing taxes issues to be a better ground for mining.