Factors Influencing Extractive Companies Benefits Sharing with Host Communities in Kilwa District, Tanzania

Abstract

The effects of stakeholder influential attributes in benefits sharing fromextractive companies have not beenmuch emphasized.Extractive companies feels that , it is the role of the Government to provide social services to her citizens because campaniespaid statutory taxes they are obligated to pay. However, communities surrounding extraction activities have theright to share benefits because they are exposed to different risks. The paper analysed factors influencing extractive companies sharing benefits with host communities in Tanzania. Specifically, this paper examined; respondents’ characteristics, stakeholder expectations, the perceived benefits sharing and factors influencing extractive companies to share benefits with host communities. A cross-sectional research design was used to collect quantitative data from 373 respondents. Binary logistic regression was used to determine factors influencing benefit sharing. It was found that the stakeholder had higher expectation of benefit sharing however; they perceived low level of benefits sharing from extractive companies. The binary logistic analysis confirmed that distance, education and legitimacy influenced benefit sharing from extractive companies. It is recommended that extractive companies and the Government should take into consideration the stakeholder’ expectations as a starting point to improve benefits sharing from extractive companies. It is also recommended that extractive industry should improve communication channels with the host communities to allow local people to understand opportunuties available from extraction busines companies