JK launching the Presidential Award on the Extractive Industry Corporate Social Responsibility and Empowerment Programme (CSRE) l;ast night.

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 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 28^th 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.