THE EFFECTIVENESS OF THE LEGAL FRAMEWORK GOVERNING MINING REFORMS IN BALANCING INVESTOR PROTECTION AND STATE SOVEREIGNTY IN TANZANIA
Tanzania has undertaken substantial reforms in the mining sector to strengthen State control over mineral resources while maintaining an investment environment capable of attracting and protecting investors. These reforms have introduced important changes concerning mineral rights, local participation, government control, natural resource agreements, contractual terms and dispute resolution. However, the expansion of State regulatory powers has also raised questions concerning legal certainty, contractual stability and the protection of legitimate investment interests. This article examines the effectiveness of the Tanzanian legal framework in balancing investor protection and State sovereignty in the mining sector, with particular attention to the post-2017 legal reforms. It analyses the Mining Act, Cap. 123, the Natural Wealth and Resources (Permanent Sovereignty) Act, Cap. 449, the Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, Cap. 450, and other relevant legal instruments. The article argues that Tanzania has established a substantial legal framework for asserting sovereign control over mineral resources and regulating mining investment. Nevertheless, challenges remain in reconciling State regulatory authority with predictability, contractual security and effective investor protection. The article therefore proposes legal and institutional measures aimed at improving regulatory clarity, consistency, accountability and investor confidence without weakening Tanzania’s permanent sovereignty over its mineral resources.
Keywords: Mining reforms; investor protection; State sovereignty; natural resources; mining law; Tanzania.
