HomeEast AfricaAcacia Mining contributes US$712 million to Tanzania's economy

Acacia Mining contributes US$712 million to Tanzania’s economy

A recent report by Ernst and Young (EY) demonstrates the significant contribution that Acacia Mining’s three mines – North Mara, Bulyanhulu and Buzwagi – continue to make to Tanzania’s economy as well as the country’s broader social development.

The report, entitled Acacia Mining Total Economic and Tax Contributions in Tanzania, 2017, concludes that during the year Acacia’s businesses purchased US$434 million of goods and services from suppliers located in Tanzania.

This represented 67% of the company’s total spend on goods and services in 2017.

Of this amount, approximately US$120 million of goods and services were purchased from businesses in the direct locality of the three mines in the country’s Lake Zone.

Despite facing several challenges during the year, in 2017 Acacia Mining contributed US$712 million to the national economy, which represents around 1.5% of Tanzania’s total gross domestic product (GDP).

This compares with a total contribution of US$724 million the previous year.

The 2017 contribution is comprised of US$200 million by the businesses, an indirect contribution via suppliers of US$304 million and induced contributions of US$208 million.

Meanwhile Acacia Mining’s three mines – North Mara, Bulyanhulu and Buzwagi made a total tax contribution to the Tanzanian Treasury of US$186 million, comprising US$101 million by the company, US$42 million by its employees, and a further US$42 million in indirect or induced taxes.

“This report further reiterates our commitment to continue conducting our business in a way that benefits the country and host communities in which we operate,” comments Acacia Mining MD Tanzania, Asa Mwaipopo.

“It is encouraging to see that our contribution stretches from our zone of influence to a national level as we continue to support efforts towards Tanzania’s socio-economic growth and the attainment of the Country’s Development Vision 2025.”

The EY report also highlighted that during the year Acacia’s businesses employed nearly 2 800 workers in Tanzania, over 96% of whom are Tanzanian and paid wages and benefits totaling more than US$111 million.

Acacia’s total direct, indirect and induced economic contribution in Tanzania in 2017 included over 33 500 jobs and approximately US$345 million of labour income.

The company’s supply chain spending alone supported nearly 19 000 indirect wage-earning jobs in Tanzania.

Besides its economic contribution, in 2017 all three of Acacia’s mines spent significantly on their social investment programmes which seek to support the Government of Tanzania’s development agenda and Vision 2025.

During the year the three mines invested over US$8 million in social projects in Tanzania, including over US$3.5 million on initiatives in education, health, infrastructure, and water and sanitation.