President
Jakaya Mrisho Kikwete speaks last night at the launching ceremony of
the Presidential Award on the Extractive Industry Corporate Social
Responsibility and Empowerment held at the Kilimanjaro Hyatt Regency
hotel in Dar es salaam
President Jakaya Mrisho kikwete greets the chairman of Tanzania Extractive Industries Transparency Initiative (TEITI), Judge Mark Bomani (rtd) last
night at the launching ceremony of the Presidential Award on the
Extractive Industry Corporate Social Responsibility and Empowerment held
at the Kilimanjaro Hyatt Regency hotel in Dar es salaam. Looking on is
ambassador Juma Mwapachu.
President
Jakaya Mrisho Kikwete arrives last night at the launching ceremony of
the Presidential Award on the Extractive Industry Corporate Social
Responsibility and Empowerment held at the Kilimanjaro Hyatt Regency
hotel in Dar es salaam. Right is the British High Commissioner to
Tanzania Ms Diane-Louise Corner, second left is the Minister for
minerals and Energy Mr William Ngeleja and far left is the Dar es salaam
Regional Commissioner Mr Meck Sadik.
President
Jakaya Mrisho Kikwete arrives last night at the launching ceremony of
the Presidential Award on the Extractive Industry Corporate Social
Responsibility and Empowerment held at the Kilimanjaro Hyatt Regency
hotel in Dar es salaam. Right is the Minister for minerals and Energy Mr
William Ngeleja and left is the Dar es salaam Regional Commissioner Mr
Meck Sadik.Photo By State House
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SPEECH
BY HIS EXCELLENCY DR. JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED
REPUBLICOF TANZANIA, AT THE LAUNCHING OF THE PRESIDENTIAL AWARD ON THE
EXTRACTIVE INDUSTRY CORPORATE SOCIAL RESPONSIBILITIES AND EMPOWERMENT
(CSRE) HELD AT HYATT KILIMANJARO HOTEL ON 28th FEBRUARY, 2012
Hon. William Ngeleja, Minister for Energy and Minerals;
Hon. Ministers, Deputy Ministers,
Hon. Regional Commissioners;
Hon. Members of Parliament;
Ambassadors and High Commissioners;
Mr. Joseph Kahama, President of the Tanzania Chamber of Energy and Minerals;
Ms. Catherine Lyombe, Mining Stakeholders Forum;
Invited CEOs of Extractive Companies and Related Services; Representatives of Financial Institutions;
Distinguished Guests;
Ladies and Gentlemen;
I
thank you honourable Minister for inviting me to participate at this
historic event of launching the Presidential Award on the Extractive
Industry Corporate Social Responsibility and Empowerment Programme
(CSRE). I am delighted that the Award will be contested annually and
companies with outstanding performance will be acknowledged.
Ladies and Gentlemen;
I
am happy with the key indicators developed to evaluate the scores for
the Award. In this regard, I consider very pertinent indeed, to include
in the indicators things like;
1. Community well-being and sustainability;
2. Human resource development and training;
3. Local industry participation;
4. Community safety, water and environment;
5. Social infrastructure such as housing and health services; and,
6. Infrastructure development such as roads, electricity etc.
I commend you, and all those involved in conceiving the ideas and all those who made it happen as we are witnessing today.
The
Presidential Award on CSR and Empowerment that we are launching tonight
is an important milestone in the history of the extractive industry in
Tanzania. It is intended to align corporate policies and practices of
companies in the extractive industry with sustainable development. It
is about making local communities where companies operate, benefit from
the operations of the companies. And, it is about the companies
benefitting from the friendliness, harmony, understanding and
cooperation that will ensue with the government and the people in the
areas where the companies operate.
Business leaders;
Ladies and Gentlemen;
The
concept of CSR is not new to Tanzania, the world and to all of us
gathered here this evening. Nowadays, it is increasingly becoming a
normal international practice. Almost all major companies in the
country have put corporate social responsibility in their mission
statements, policies and internal management systems. What is new to us
Tanzania, therefore, is the Award we are launching tonight. Otherwise,
companies have been working to ensure that local communities receive
some direct benefits, and contribute to broadening social and economic
sustainable development.
If
principles of Corporate Social responsibility are observed and
delivered, companies will enjoy very good relations with the communities
around them. If companies pay taxes that are due to the State,
rightfully and timely, they will have good relations with the
government. Likewise, if the government and communities aptly deliver
on their part of the responsibilities they will enjoy good relations
with companies. In the end everybody benefits and a win-win situation
will be realised. I believe, this is the best insurance policy one can
long to have as an investor and as an investment destination. If this
is absent there is every risk of friction which is not healthy for
business and may put the investment in jeopardy. Everybody will be at
risk losing.
Ladies and Gentlemen;
As
alluded to earlier, under CSR and Empowerment, companies are expected
to contribute to the provision of important social and economic services
to the communities where companies are located. Besides that, I would
like to mention and underscore two or three importance things. The
first one is about sourcing goods and services locally. Companies
should make it their policy to engage local companies and local people
in this regard. There are services which can be sourced locally, there
is no need of importing them from abroad. This is the best way to
promote local empowerment and an excellent way of promoting
socio-economic growth in the economy of the area and the country.
This
way, the company is integrating itself in the socio-economic life of
the people by creating jobs and incomes. It engenders, what economists
call backward and forward linkages. This will make the people strongly
feel a sense of ownership and an obligation to protect the investment.
But if such things are absent people will have no stake in operations of
the company. As a result, they may care less about the presence,
survival and progress of the company. They may even turn hostile. May I
make a humble appeal to all companies in different sectors to take this
matter seriously.
The
other thing I would like to mention with regard to CSR policies is the
relationship between large companies and small companies and local
people engaged in the same industry. It is incumbent upon large
companies to realise that assisting local players to make progress is in
their best interest.
Big
companies should use their economic strength and technological capacity
to help small players improve their operating systems, increase
productivity, production and improve their affairs in general. I
believe, it will reduce jealousies, minimise friction, avoid unnecessary
hostility and increase friendship and cooperation. Take the case of
artisanal mining activities in the vicinity of large mining operations
in Tanzania. If the latter assists the former and treat each other as
partners, instead of competitors or contenders, it will very much
improve relations between the two players who need each other. It will
clear undue misunderstanding and remove the mistrust and resentment.
Attitudes of hostility, threats and violence can easily be avoided. In
the end everybody benefits.
Ladies and Gentlemen;
The
extractive industry can emulate the good practice of out-growers scheme
around sugar plantations and sugar factories in Tanzania. In those
cases, the large company supports small scale farmers, as out-growers,
in several ways including provision of important services such as
extension services, seedlings, technical know-how and market for their
sugar cane. I think this is a good model to look into. It enhances
local productive capacity and ensures sustainability of income to
farmers. May this Award inspire companies in the extractive industry to
emulate this example and strive to do what is possible to assist the
local small scale investors grow and promote long-term economic and
social sustainability.
Ladies and Gentlemen;
We
in government consider CSR and Empowerment in the extractive industry
very important indeed. By their very nature, most of the operations in
extractive industry are not renewable. They get depleted as extraction
continues. As such if there are no proper arrangements for tangible
benefits to the communities where the operations are located, they could
easily become a source of discontent and resentment. When the
resources are completely exhausted and operations are stopped, the
questions people would hasten to ask is about how did they benefit? The
centrality of having mechanisms whereby communities and the country
benefits even at the end of the life of the operations, therefore, need
no emphasis.
We
would like to see when such eventuality comes, everybody says we have
benefited. Contrary to that may create apprehensions and even
resentment of large investors in the extractive industry especially when
they are foreign based. I believe, this is doable. Let us heed the
old adage “where there is will there is a way”. Let us gunner the will to do it for our sake.
Honourable Minister;
Distinguished Guests;
Ladies and Gentlemen;
Before
I conclude, let me, once again, sincerely thank the Mining Inter
stakeholders’ Forum (MISF) and the Ministry of Energy and Minerals for
conceiving the idea and introducing the CSRE Presidential Award in
Tanzania. We are a little bit late, but it is better late than never.
I
am confident the Award will stimulate and encourage the extractive
companies to take interest in the communities around them and deliver on
corporate social responsibility and empowerment. I invite business
leaders here tonight to heed this our call and rise to the challenge.
With
these many words, I now announce that the Corporate Social
Responsibilities and Empowerment Presidential Award on Extractive
Industry is officially launched.
Thank you for your kind attention!