President Jakaya Kikwete
SPEECH BY HIS EXCELLENCY DR. JAKAYA KIKWETE, PRESIDENT OF UNITED REPUBLIC OF TANZANIA, AT THE PRESIDENTIAL AWARDS GIVING CEREMONY ON CORPORATE SOCIAL RESPONSIBILITIES AND EMPOWERMENT (CSRE) HELD AT HYATT KILIMANJARO HOTEL ON 20th AUGUST, 2013
Honourable Professor Sospeter M. Muhongo (MP), Minister of Energy and Minerals;
Honourable Ministers, Deputy Ministers;
Your Excellencies Ambassadors and High Commissioners;
Invited CEOs of Extractive Companies and Related Services;
Representatives of Financial Institutions;
Distinguished Guests;
Ladies and Gentlemen.
It is an honour and a pleasure for me to join business leaders and other partners in Tanzania’s development endeavour on this very auspicious day. I thank Honourable Professor Sospeter Muhongo and the leadership of the Extractive Inter-stakeholders’ Forum for inviting me to officiate at the Presidential Award on the Corporate Social Responsibility and Empowerment (CSRE) Programs in the Extractive Industry for the year 2012.
Ladies and Gentlemen;
You will recall that on 28 February, 2012 we launched this Award in order to build broader and more strategic alliances with the extractive industry around key development challenges of common concerns. These include job creation, promoting economic growth, social development and supporting green growth. We were both in agreement that addressing these challenges will not only advance our country’s development, but will also, help to unlock the potential that our country possesses.
Today, I am happy that the dream has become a reality. Indeed, we have established an official platform that provides an excellent opportunity to evaluate, acknowledge and reward efforts that extractive companies are expending in support of communities around them. I take this opportunity to sincerely thank the forty four companies which participated in this noble cause and the judges who enabled us to get winners for 2012 Award. We commend and salute them for excelling in CSRE programs and encourage other companies to emulate their good examples. We are hopeful that this initiative will inspire even more companies in the extractive industry to expand or start new CSRE programs. Our ultimate goal is to see extractive companies and beyond align CSRE projects with their corporate policies and national development goals.
Distinguished Guests,
Ladies and Gentlemen,
It is heart-warming indeed, to note that the evaluation exercise went very well. Many valuable experiences have been learnt and areas of strength and weakness have been identified and what needs to be done to see better performance in future has been proposed. In this regard, for example, we need to improve on transparency in the execution of CSRE Programs by strengthening the involvement of local government and ensuring sustainability of the projects. Indeed, for maximum impact and greater benefits, the involvement of local communities is not only necessary, but also paramount.
Indeed, business and society are equal partners in the advancement of the wider community. Business is not solely about making economic returns, it is also about people and values. That is why companies that have successfully incorporated CSRE into their business operations have reaped better returns. This has proven to be an effective marketing tool for such businesses. And those that do not engage in CSRE suffer public relations risk as local citizens become increasingly aware of what responsible corporate practice is all about.
Honourable Minister;
Ladies and Gentlemen;
You will recall that during the launching of the Presidential Award last year, I encouraged extractive companies to strengthen the relationship between large, medium and small scale miners by providing technology, equipment or financial support. I am happy that we are making progress in that regard. I hope the Multi Stakeholders Partnership Initiative to Improve Small Scale and Large Scale Miners (SSM-LSM) coexistence signed on 28th June, 2013 between the government, the World Bank, private sector and representative of small scale miners will complement our efforts. I appeal to all stakeholders to properly utilise this newly signed initiative to improve relationship between small and large scale mining operations for mutual benefits of all categories.
I have also noted efforts being made by extractive companies to scale up local procurement of goods and services. This has always been my appeal to extractive companies in the country. It does not make sense to import food stuffs and other services which can be procured locally. The local population has to be told of the standards they are required to meet. I am sure they will and where they need to be enabled we should do so. By procuring locally, communities that surround extractive operations are empowered and the whole nation benefits. Indeed, this also allows the extractive industry to integrate with other sectors of the economy and thus enhance the economic spill-over and multiplier effects to the economy. The progress is forthcoming but we need to do more in this area to shape public opinion, win public trust and cooperation.
It would be pleasant to see extractive companies directly and deeply involved in various CSRE programs aiming at lifting up local communities out of poverty in line with the government aspirations of “maisha bora kwa kila Mtanzania” meaning better life for every Tanzanian. Let us all be inspired by the memorable words of Mr. William Ford Junior, Chairman of Ford Motor, who once said “a good company delivers excellent products and services and a great company does all that and strives to make the world a better place”.
Ladies and Gentlemen;
I want to reassure you that the government appreciates the invaluable contribution of all extractive companies operating in Tanzania. They are our true partners in our vision to achieve a middle-income status by 2025. They contribute immensely to the GDP, government revenue, foreign exchange earnings and employment. We therefore cherish the enduring partnership and look forward to strengthening our cooperation in order to address development challenges facing our great country.
In this regard the government will continue to take measures to ensure the business environment is improved even further. We will strive to ensure that the culture of CSRE is entrenched in the corporate policies of extractive companies in Tanzania. In this regard I appeal to other stakeholders to support our resolve. Our development partners have critical role to play in sustaining their support in this area. The education sector also has an important role to play in shaping the attitudes of future business leaders. Universities and high learning business institutions can influence the mindset of tomorrow’s managers and entrepreneurs by introducing CSRE related concepts into the curriculum. Civil Society Organisations and Community Based Organisations can also form some sort of partnership with extractive companies and monitor their performance in terms of CSRE initiatives. Such a coordinated effort is critical in tackling real development challenges facing our country.
However, extractive companies have greater role to play. By aligning their CSRE programs with our national development goals, extractive companies can be good corporate citizens, and by supporting our sustainable development, can contribute to the betterment of the societies in which they operate.
Honourable Minister;
Invited guests; Ladies and Gentlemen;
Finally, I take this opportunity to congratulate all the companies that have participated in this year’s Presidential Award. On behalf of our country’s women and men, I thank you and implore you to continue the good work you are doing. Together we can bring positive change to communities and move our country forward. I also encourage other companies that have not yet decided to join the initiative to do so. We welcome them on board.
I wish every company in extractive industry every success and prosperous business in Tanzania.
Thank you for your kind attention.