Local Content Agenda: The Role of Institution Theory on Policy and Practical Challenges in Local Procurement Practice by Mining Entities in Tanzania

Baraka Kambi, Michael Kambi
2017 Humanities and Social Sciences Letters  
Local content is a famous agenda that sweeps across Africa. In Tanzania it is one of the new agenda that needs attention. This paper answer the question which asks, what are the challenges of local content in local procurement especially in major mining entities in Tanzania? The paper has deployed Institutional theory in addressing the research question. The paper has tried to explain what has transpired in Tanzania over local content agenda and the recommendations on how to deal with the
more » ... deal with the challenges. Contribution/ Originality This study is one of very few studies which have investigated on the local content agenda based on the challenges of procurement practices in the mining sector in Africa particularly in Tanzania. It has pinpointed the challenges that the local nationals are facing in the mining sector value chain and institutional and organizational capacities that can be deployed to mitigate the challenges. Additionally, official statistics for mining include quarries and exploration projects, large scale operational mines accounts for more than 95% of the value. From 1997 to 2012, FDI to mining sector had amassed about USD 7.3 billion (Figure 1 ). Since 1997, mining investments gives more than 50% of FDI and in some years more than
doi:10.18488/journal.73/2017.5.1/ fatcat:v6xwzz2hunbnxk2yesi7nugsvq