January 2018: Finance Briefing

The impact of the new Mining Local Content Regulations on banking operations

In this month's Finance Briefing we review the effects of the new Mining (Local Content) Regulations, 2018 (the Regulations) on operations of commercial banks in Tanzania.

Recent legislative changes have been introduced to encourage local content participation in Tanzania. In general, the spirit of the Regulations is to increase local content in the mining sector. Regulation 36, in particular, deals with the use of a bank account in Tanzania by requiring persons or entities who conduct mining operations or activities (at all levels of the supply chain) in Tanzania to maintain a bank account with an indigenous Tanzanian bank and transact business through banks in Tanzania.