Supplier of mining companies to be local

Reading the Mining (Local Content) Regulations, I note that the law requires mining companies to give preference to Indigenous companies when appointing their suppliers of goods and services. Why does the law impose this condition? What if I cannot find an indigenous Tanzanian Company? 
YU, DarIn a bid to ensure that Tanzanians benefit adequately from the endowed mineral resources, the Mining (Local Content) Regulations (Regulations) give preference to Tanzanian employees; Tanzanian insurers; and Tanzanian producers and suppliers of locally obtainable goods and services. This intends to ensure Tanzanians are integrated into the mining sector not only as revenue-dependent persons but also as employees, producers and suppliers of goods and services respectively. Regulation 15 of the Regulations requires contractors, subcontractors, licensees or allied entities carrying out mining activities to establish and implement a bidding process for the acquisition of goods and services to give preference to an Indigenous Tanzanian Company. An Indigenous Tanzanian company is a company incorporated under the Companies Act that has at least 20% of its equity owned by a citizen or citizens of Tanzania; has Tanzanian citizens holding at least 80% of executive and senior management positions and 100% of non-managerial and other positions. All these 3 criteria must co-exist. As indicated above, preference to an Indigenous Tanzanian Company, as per the Regulations, is aimed at ensuring that Tanzanians benefit from mining operations in terms of employment and provision of locally-produced goods or services.

For a non-indigenous Tanzanian Company to service the mining sector, it should incorporate an Indigenous Tanzanian Company and operate it from Tanzania or incorporate a Joint Venture Company (incorporated Joint Venture) where an Indigenous Tanzanian Company holds at least 20% of shares. With this, contractors, subcontractors, licensees or allied entities carrying out mining activities should only consider non-indigenous Tanzanian companies for supply of goods and services in the absence of capable Indigenous Tanzanian Companies. However, even with the absence of an indigenous Tanzanian company, a non-indigenous Tanzanian company should either incorporate an indigenous Tanzanian company and operate it from here or incorporate a joint venture company with the available indigenous Tanzanian company. This is not uncommon in many mineral rich countries.