Financial Support And Economic Effect Of Mining Industry On Local Livelihood In Tanzania

Study is about the financial support and economic effect of mining industry on local livelihood in Tanzania: A case of tanzanite gemstone mining in Simanjiro District, Manyara Region, Tanzania. The study was undertaken within areas and areas around where tanzanite gemstone mining activities are taking place in Songambele A, Songamele B, Sokoni, and Mererani villages. The study has involved a sample of 227 respondents comprising those who were interviewed and those who filled questionnaires. This sample was derived by applying purposive and simple random sampling methods. The methods were used to collect information on the financial support and economic effect ofmining industry on local livelihood in Tanzania. Indeed, the study objective was to determine the strictness of themining industry‘s financial support and economic effect on local livelihood.In this study, descriptive and statistical data analysis was applied based on data and information collected from primary and secondary sources. The Probit method with Eviews 9.0(x64) software has been used in analyzing the collected data.The findings in this study revealed there is a positive relation(1.7915) on main occupation and mining activities as compared to agriculture activities where there is negative relations(-0.0915) with main occupation, also on house hold source of income the result revealed that there is a positive relations(0.6067) on house hold source of income on mining activities as compared to other activities where there is negative relations(-0.2908) with house hold source of income, these shows that there were major differences on local livelihood status between households engaged on gemstone activities and those do not.Though tanzanite gemstone mining noticed to have less percent age in financial support to the community; these include construction of schools(3.7%) market for staple food crops(5.5%), farm implements, farm implements(4.1%), construction of dispensaries(4.1%), supply of medication(5.1%), market for livestock by-products(2.6%), cash crops(1.4%) as well as support for petty business(1.4%). There was completely no financial support provided by gemstone mining on teachers‘ salaries and constructions of houses for teachers, other way it is important for the Government to make deliberate efforts to minimize the negative impact of gemstone mining activities, including regulating mining laws and policies, and ways in which is likely to affect the future development trajectories of the country by evaluation of how mining companies are altering the local livelihood context in which they are operating.In additional, the study suggests interventions that can be achieved if the government provides supports to the operating companies as well as technical support to local operators.