Study Confirms ABG’s Contribution to the Tanzanian Economy
13 Nov 2013
A report released today by Ernst & Young, the global accounting firm, entitled “African Barrick Gold’s total economic and tax contributions in Tanzania, 2012” has demonstrated the significant impact that African Barrick Gold’s activities in Tanzania have on the country’s economic development.
In 2012, ABG’s made a total contribution of over $980 million to the Tanzanian economy which represents over 3% of total Tanzanian gross domestic product (GDP). This contribution to GDP was comprised of a direct contribution of $275 million and indirect and induced contributions of $706 million. In addition ABG made a total tax contribution of $223 million which comprises direct tax contributions of $161 million and indirect and induced contributions of $62 million.
Furthermore the report showed that for each of ABG’s employees, a further 11 jobs are created within the Tanzanian economy, which means that ABG’s operations are supporting over 65,000 jobs across Tanzania. In 2012, ABG’s spent $514 million on goods and services from suppliers based in Tanzania which represented 62% of our total spend in supply chain. These supplier purchases by ABG support 37,500 indirect employees in Tanzania who work at supplier firms including professional services companies and manufacturers with a further 23,400 induced jobs supported through the consumer purchases of ABG and supplier employees in Tanzania.
The report also highlighted that Tanzanian's make up 93% of ABG’s workforce in Tanzania and that ABG is a high-wage employer, paying each employee an average of US$14,000 per annum which is 10 times the average wage in Tanzania.