Tanzania's Energy and Minerals minister William Ngeleja

A draft report of the 16th meeting of the Intergovernmental Committee of Experts (ICE) has warned Eastern African countries against heavy dependence on their traditional markets in Europe and official development aid.

The report, themed ‘Harnessing the African Peer Review Mechanism (APRM) Potential to Advance Mineral Resources Governance in Africa,’ which was released yesterday at the end of the meeting, said the region’s growth performance was still vulnerable in a number of areas.

It said despite increasing reorientation of trade and investment patterns towards emerging partners, there was still heavy dependence on traditional markets in Europe, which have been hit by the euro zone crisis.

It said further that although some countries in the region have managed to reduce it, there was still high dependence on official development aid (ODA), receipts of which amounted to USD16 billion for the whole region n 2010.

It said there are signs that investors are beginning to target regional rather that national markets.

“There is reorientation of trade and investment patterns towards emerging markets like China. For instance, East African Community’s trade with China reached USD 4billion in 2010.” it said.

The report said further that large investments coming from the emerging markets in 2011 have not been restricted to the natural resource sector.

Closing the meeting, Energy and Minerals minister William Ngeleja said Tanzania was systematically reviewing its mining policies with a view to ushering in a more win-win situation between investors on the one hand and the government and its people on the other.

He said already 10 per cent of the country’s wealth in mineral sector have been mined under more investor-attractive terms, adding that the same stance would be sustained but under more agreeable gain to the country than was the case now.

Ngeleja added that the target was to systematically effect a percentage gain rise from the present 10 or so per cent to 30 per cent-plus for the country as is the case in other countries such as Botswana and South Africa.

By SYLIVESTER DOMASA, The Guardian

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