By Motapo We Zi’Gidi
Shame ANC. Did you know that Tanzania doesn’t debate but hits whites monopoly capital very hard?
It is quite depressing to be a black South African today because our politicians are scared and terrified by Ruperts, Rothschilds, Soros, et.al.
They argue for days if white capital is a problem or not, without coming out clear on what they have decided. They also talk big on the NDR – national democratic revolution – and radical economic transformation. Yet they are neither “revolutionary” nor “radical”.
I challenge everybody to visit Tanzania in order to really know what being radical and revolutionary mean in practice.
President John Mugafuli
When President Mugafuli was installed as the president of the Jamhuri ya Muungano wa Tanzania, he made it clear that his government wanted to exercise tighter controls and exert more government influence in Tanzania’s extractive sector.
What was more telling is that the government set a target of doubling the mining industry’s contribution to the GDP to 10 percent by 2025.
Mugafuli fired the first bullet by addressing the problem of revenue leakages in the mining sector as he suspected that certain companies were involved in tax avoidance and profit shifting.
For example, he accused gold/ copper mining company Acacia PLC of operating illegally in the country and failing to pay billions of dollars of taxes. The showdown between the company and the presidency made Mugafuli determined to show the global mining companies who was in charge.
The first steps taken in this direction were:
○ In March this year, Mugafuli banned all mineral exports (particularly gold and copper concentrates) and ordered an audit to identify loopholes that he said result in revenue losses;
○ In May, Mugafuli fired the minister of mines after a probe found mineral shipments had been understated. He argued the minister was slow in addressing the problem, which undermined the government’s long-term goal of increasing revenues from mining;
○ Mugafuli ordered the ministry concerned to neither issue new mining licenses nor renew expired ones; and
○ Further, the Tanzanian government floated a new Finance Act that would impose a 1% clearing fee on the value of minerals exported from the country as of 1 July 2017.
Tanzania is the continent’s third-biggest gold producer, with companies including AngloGold Ashanti Ltd. and Acacia Mining Plc extracting the metal. Other minerals found in Tanzania are copper, iron, zinc and diamonds.
Tanzania is also rich in petroleum. The country is said to hold about 55 trillion cubic feet of natural gas reserves that are being developed for export by companies, including Statoil ASA and BG Group Plc.
The story of Tanzania gets even interesting as Mugafuli doesn’t debate whether white monopoly capital exists or not, like his cowardly ANC relatives down south.
Mugafuli takes the bull by the horns
This week the Tanzanian parliament passed three laws that allow the government to force mining and energy companies to renegotiate their contracts. Mugafuli has said that the reforms are aimed at increasing “transparency and revenues.”
In much more detail, the three bills passed by parliament deal with: natural resources contracts; sovereignty and amendments to existing laws; and granting government unfettered rights to renegotiate or dissolve contracts.
Some of the clauses contained in the new laws include:
○ Government has power to tear-up and renegotiate agreements it had with mining companies.
○ Government entitled to a free-carried 16% stake in mining companies as well as the option to acquire up to a 50% stake.
○ “Indigenisation” – Preferential procurement of Tanzanian goods and services.
Obviously, Tanzania’s new legal framework goes a billion times further than the newly released lenient Mining Charter, which is said to be “revolutionary”. As a non-event as the Mining Charter is, the Chamber of Mines is up in arms against the state and our singing comrades at the policy conference failed to defend the Charter.
White monopoly capital in mining shows government the middle finger. Its agents and proxies are extremely desperate to assist the likes of Anglo-American, South 32 and others maintain their hegemony over the South Africa’s minerals. This fight has been left to Msebenzi Zwane to battle these sharks.
At the rate we are going, it is clear we will not achieve what Mugafuli has done in just under two years. Joel Netshitenze, Tito Mboweni, Enoch Godongwane and company put their bodies in the line to divert the attention of the ANC on debates concerning the economy.
Godongwane has been leading the ANC’s economic policy for too long. He has failed with distinction: Isn’t it time to get a better person who knows what has to be done? Poor old chap has served white interests within the party for too long. It is now time to bid him farewell.
The likes of Godongwane, therefore, made sure that the ANC reached unnecessary deadlocks on the Reserve Bank, land question, Mining Charter, etc. President Zuma appears to fight a lone battle as the contestation on who can defend whites better reached its highest peak in past six days.
Can’t stronger groupings snatch the economic policy from those who clearly oppose change?
It is good to see that Tanzania leads the way. Mugafuli has set the tone for dealing with big mining companies.
As it is always the case, clever blacks will tell you all about FDI and the rand.
South Africa change is painful.
As Ayabonga Cawe says,
Siyayilwela le economy!