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Our economic contribution

Acacia makes a significant contribution to our host countries

EY have undertaken their fifth annual analysis of Acacia Mining’s economic contribution in Tanzania. The economic impact analysis described in the report finds that Acacia’s Tanzanian entities support economic activity across a wide range of industries in Tanzania, including thousands of jobs with suppliers and other businesses and millions of dollars of government revenue.

The report finds that Acacia’s total direct, indirect, and induced economic contribution in Tanzania in 2016 included more than 36,000 jobs, approximately US$339 million of labour income, and nearly US$724 million of value added (GDP).

In total, including direct, indirect, and induced taxes paid by Acacia, its employees, suppliers, and other affected businesses, Acacia’s total tax contribution in 2016 was an estimated US$214 million.

The overall full employment multiplier (including indirect and induced economic activity) is 17, which can be interpreted as, for each direct Acacia employee, 16 additional wage jobs and self-proprietors are supported in the broader Tanzanian economy.

Specific findings of the analysis include the following:

  • Acacia generates economic impact for each ounce of gold mined. For every thousand troy ounces of gold produced, Acacia adds more than $872,000 in value to the Tanzanian economy, 44 jobs in the Tanzanian economy, and $243,000 in direct, indirect and induced tax revenue.
  • Acacia provides high paying jobs to Tanzanian nationals. Of Acacia’s nearly 3,000 full and part-time wage employees in Tanzania, approximately 2,800 (95%) were Tanzanian nationals. Tanzanian nationals employed by Acacia received an average annual wage of approximately US$20,000, which was more than 10 times higher than the average earnings of US$1,878 for Tanzanian workers throughout the economy in 2016. For every direct employee at Acacia’s mines and administrative offices in Tanzania, there were approximately 12 paid employees and 5 self-employed individuals supported in the broader economy.
  • Acacia’s total government revenue contribution per employee is more than 100 times higher than the national average. Per employee, Acacia contributes US$38,100 of direct taxes and royalties, compared to approximately US$332 per worker economy-wide.
  • Acacia has a strong Tanzanian supply chain. In 2016, Acacia’s Tanzanian entities purchased US$413 million of goods and services from other Tanzanian businesses for use by its Tanzania operations. These purchases of Tanzanian goods and services accounted for 66% of total supplier purchases made by Acacia’s Tanzanian entities. Of this amount, approximately US$112 million was purchased from businesses local to Acacia’s mines.
  • Acacia’s total contribution to Tanzanian GDP in 2016 was approximately US$724 million. This level of total GDP contribution is equivalent to approximately 1.6% of total Tanzanian GDP in 2016.
  • Acacia and Acacia employees together incurred approximately US$167 million in taxes and royalties in Tanzania in 2016. Acacia incurred nearly US$128 million in taxes and royalties, approximately 80% of which was related to corporate income taxes and royalties, while the remaining 20% was related to unrecovered VAT, customs & excise taxes, payroll taxes, and other levies. Of this, US$14 million of corporate income tax will be paid on assessment in 2017. Acacia’s employees paid an estimated US$39.3 million in taxes. The majority (70%) of the estimated employee tax impact results from individual income taxes and social security contributions paid by employees. Employees also paid significant amounts of VAT, excise, and other taxes on consumption spending.
  • Acacia invests in its local communities. In 2016, Acacia’s spending related to social investments in Tanzania totalled nearly US$11 million. Of this, over $6 million was spent on a variety of initiatives in education, health, infrastructure, water and sanitation, primarily in the communities surrounding Acacia’s mines.