Tanzania to lock foreign banks, law firms out of mining sector

FOREIGN-owned banks, insurance companies, and law firms could be locked out of Tanzania’s mining sector as part of tough new regulations that aim to limit foreign ownership of mining-related activity, said Reuters.

Citing the country’s Mining Regulations of 2018, Reuters said that Tanzania will now make it compulsory for foreign-owned mining groups to offer shares to the government and local companies.

The new rules will restrict the way in which foreign-owned banks, insurance companies and law firms conduct business with mining firms, according to the regulations seen by Reuters.

“A contractor, sub-contractor, licensee (mining company) or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country,” the Mining Regulations said.

The regulations define an “an indigenous Tanzanian bank” as a bank that has 100 percent Tanzanian or a majority Tanzanian shareholding.