RE-AFFIRMING THE PERMANENT SOVEREIGNTY OVER NATURAL RESOURCES.

IMPLICATIONS OF EMERGING LEGISLATIVE TRENDS IN TANZANIA.

Abstract

This article provides for an overview of a legislative framework on the ownership, managing and utilization of natural resources. The rights and interests of the People and the State to manage their natural wealth and resources are reiterated within the Principle of Permanent Sovereignty over Natural Resources (PSNR). The recent legislative enactments in Tanzania provide for a revolutionary approach towards the re affirming of the PSNR in Tanzania to ensure that natural wealth and resources are beneficially utilized to serve interests of the Tanzanians. Such enactments have imposed upon all investors including foreign investors’ mandatory requirement to submit themselves to renegotiation of terms of the agreements to own, manage or acquire rights on extraction of natural wealth and resources if the National Assembly finds the same to be unconscionable terms. Further, the national institutions -legislative, judicial or executive are given full mandate to deal with issues relating to dispute resolutions. These legislative enactments have departed from long entrenched provisions of Mining Development Agreements (MDAs), Bilateral Investment Treaties (BITs) and Multilateral Investment Treaties (MITs) which exclude the municipal judicial institutions and laws to determine investments disputes, stabilization clauses restricting the State to invoke legislative enactments to ensure equitable share and development from the utilization of natural wealth and resources. However, the existing MDAs, BITs and MITs may act as impediments in realization of the benefits arising out of use of resources. The Government must stand firm to realize the fruits of the enactments through renegotiations and other diplomatic means with Multinational corporations operating in Tanzania.