The Natural Wealth and Resources (Permanent Sovereignty) Act

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CHAPTER 449
THE NATURAL WEALTH AND RESOURCES
(PERMANENT SOVEREIGNTY) ACT
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Application.
3. Interpretation.
part ii
PERMANENT SOVEREIGNTY OVER NATURAL WEALTH
AND RESOURCES
4. Proclamation of permanent sovereignty.
5. Inalienability of natural wealth and resources.
6. Prohibition of exploitation except for benefit of People.
7. Guarantee of returns from natural wealth and resources.
8. Participation of People and Government.
9. Requirement for beneficiation.
10. Retention of earnings.
part iii
PROTECTION OF PERMANENT SOVEREIGNTY
11. Prohibition of proceedings in foreign courts.
12. Review by National Assembly.
13. Power to make regulations.
SCHEDULES

N OF PERMANENT SOVEREIGNTY
11. Prohibition of proceedings in foreign courts.
12. Review by National Assembly.
13. Power to make regulations.
SCHEDULES

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PREAMBLE
WHEREAS, the fundamental objectives and directive
principles of state policy enshrined under sub-article (1) of
Article 8 and Article 9(f) of the Constitution of the United
Republic of Tanzania, 1977, assert that the United Republic is a
State which adheres to the principles of democracy and social
justice and, accordingly, sovereignty resides in the People
and it is from the People that the Government, through the
Constitution of the United Republic of Tanzania, 1977, derives
all its powers and authority and that the primary objective of
the Government shall be the welfare of the People;
AND WHEREAS, international law recognises the right of
the United Republic to assert permanent sovereign right for
the purpose of exploring, exploiting and managing its natural
resources;
AND RECOGNISING, that the United Republic is a
signatory to the United Nations Universal Declaration of
Human Rights and the African Charter on Human and People’s
Rights and subscribes to Articles 17 and 21 respectively;
AND WHEREAS, the United Republic being a sovereign
state has permanent sovereignty over all natural wealth
and resources thence imposing on the Government the
CHAPTER 449
THE NATURAL WEALTH AND RESOURCES
(PERMANENT SOVEREIGNTY) ACT
[15th July, 2017]
[GN.

th
and resources thence imposing on the Government the
CHAPTER 449
THE NATURAL WEALTH AND RESOURCES
(PERMANENT SOVEREIGNTY) ACT
[15th July, 2017]
[GN.

No. 246 of 2017]
Acts Nos. 5 of 2017
9 of 2017
2 of 2020
4 of 2021

No. 246 of 2017]
Acts Nos. 5 of 2017
9 of 2017
2 of 2020
4 of 2021

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E.

f this book may be reproduced or distributed without permission of OAG.645
THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E.

2023]
responsibility of ensuring that interests of the People and
the United Republic are paramount and protected in any
arrangement or agreement which the Government makes or
enters in respect of such natural wealth and resources;
AND WHEREAS, by virtue of Article 27 of the Constitution
of the United Republic of Tanzania, 1977, the protection
of natural wealth and resources in the United Republic is
charged on the People and the Government and the control
of which is entrusted to the President;
AND WHEREAS, the fundamental objectives and directive
principles of state policy enshrined under paragraphs (c) and
(i) of Article 9 of the Constitution of the United Republic of
Tanzania, 1977 require all activities of the Government to be
conducted in such a manner as to ensure that the national
wealth and heritage are harnessed, preserved and applied for
the common good, and to prevent exploitation, and that, the
use of the national wealth and heritage places emphasis on the
development of the People and the Nation, and in particular,
geared towards the eradication of poverty, ignorance and
diseases;
AND WHEREAS, the Government has resolved to fairly
and equitably undertake protracted measures intended to
ensure that the natural wealth and resources of the United
Republic are used for the greatest benefit and welfare of
the People and the United Republic by ensuring that all
arrangements or agreements made into by the Government
protect interests of the People and the United Republic;
AND WHEREAS, it is necessary to make comprehensive
statutory provisions to provide for ownership and control
over natural wealth and resources and to provide for the
protection of permanent sovereignty over natural wealth and
resources;

ownership and control
over natural wealth and resources and to provide for the
protection of permanent sovereignty over natural wealth and
resources;

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646
NOW THEREFORE, be it ENACTED by the Parliament of
the United Republic of Tanzania as follows:
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Natural Wealth and Resources
(Permanent Sovereignty) Act. 2.–(1) This Act shall, without prejudice to the authority of the
Revolutionary Government of Zanzibar over ownership and
control of its own national wealth and resources in accordance
with the Constitution of the United Republic of Tanzania, 1977
and the laws of Tanzania Zanzibar in relation to natural wealth
and resources, apply to Mainland Tanzania as well as Tanzania
Zanzibar. (2) Without prejudice to subsection (1), this Act shall not
apply to an agreement that provides for special arrangement
relating to transportation of natural resources that are not
exploited in the United Republic and such arrangement has
been approved by the Cabinet. 3.

elating to transportation of natural resources that are not
exploited in the United Republic and such arrangement has
been approved by the Cabinet. 3.

In this Act, unless the context otherwise requires-
“arrangement or agreement” means any contract relating to
extraction, exploitation or acquisition and use of natural
wealth and resources;
“Government” means the Government of the United
Republic or the Revolutionary Government of Zanzibar
as the case may be, and the corresponding Constitutions
and institutions of the United Republic and Tanzania
Zanzibar exercising powers or performing functions in
relation to natural wealth and resources;
“Minister” means the Minister responsible for legal affairs;
“natural wealth and resources” means all materials or substances
occurring in nature such as soil, subsoil, gaseous and water
resources, mineral resources, petroleum resources, fauna and
Short title
Application
Act No. 4 of 2021 s. 21
Interpretation
Act No. 9 of 2017 s. 14

er
resources, mineral resources, petroleum resources, fauna and
Short title
Application
Act No. 4 of 2021 s. 21
Interpretation
Act No. 9 of 2017 s. 14

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
flora, genetic resources, aquatic resources, micro-organisms,
air space, rivers, lakes and maritime space, including the
Tanzania’s territorial sea and the continental shelf, living
and non-living resources in the Exclusive Economic Zone
which can be extracted, exploited or acquired and used for
economic gain, whether processed or not; and
“national jurisdiction” means the authority of judicial system
in the United Republic to administer justice over things
and persons within the United Republic. PART II
PERMANENT SOVEREIGNTY OVER
NATURAL WEALTH AND RESOURCES
4.–(1) The People of the United Republic shall have permanent
sovereignty over all natural wealth and resources. (2) The ownership and control over natural wealth and
resources shall be exercised by, and through the Government
on behalf of the People and the United Republic.

rship and control over natural wealth and
resources shall be exercised by, and through the Government
on behalf of the People and the United Republic.

(3) The First and Second Schedules shall have effect in
relation to assertion by the People and the United Republic
over permanent sovereignty over natural wealth and resources. 5.–(1) The natural wealth and resources shall be inalienable in
any manner whatsoever and shall always remain the property
of the People of the United Republic. (2) The natural wealth and resources shall be held in trust by
the President on behalf of the People of the United Republic. (3) For purposes of subsections (1) and (2), all activities
and undertakings relating to exploration of natural wealth and
resources shall be conducted by the Government on behalf of
the People of the United Republic. (4) Without prejudice to subsection (3), the Government
may, where it considers necessary, authorise any person to
perform functions or undertakings relating to exploration of
natural wealth and resources in accordance with the laws of
Tanzania. Proclamation
of permanent
sovereignty
Inalienability of
natural wealth
and resources

ral wealth and resources in accordance with the laws of
Tanzania. Proclamation
of permanent
sovereignty
Inalienability of
natural wealth
and resources

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648
6.–(1) Pursuant to paragraphs (c) and (i) of Article 9 of the
Constitution of the United Republic of Tanzania, 1977, it
shall be unlawful to make any arrangement or agreement for
the extraction, exploitation or acquisition and use of natural
wealth and resources except where the interests of the People
and the United Republic are fully secured. (2) An arrangement or agreement for international
cooperation for the economic and social development involving
natural wealth and resources, whether in the form of public or
private capital investments, exchange of goods and services,
technical assistance or exchange of scientific information shall
aim at furthering independence and self reliance of the People
of the United Republic based upon respect for permanent
sovereignty over natural wealth and resources.

ng independence and self reliance of the People
of the United Republic based upon respect for permanent
sovereignty over natural wealth and resources.

(3) For purposes of subsections (1) and (2), it shall be the
duty and responsibility of the Government, all organs and
persons or authorities exercising executive, legislative or
judicial functions to take cognisance of, observe and apply the
provisions of this Act. 7. In any arrangement or agreement for extraction, exploitation
or acquisition and use of natural wealth and resources, there
shall be guaranteed returns into the Tanzanian economy
from the earnings accrued or derived from such extraction,
exploitation or acquisition and use. 8. Any authorisation granted for the extraction, exploitation
or acquisition and use of natural wealth and resources,
arrangements shall be made or given to ensure that the
Government obtains an equitable stake in the venture and
the People of the United Republic may acquire stakes in the
venture. 9.–(1) An arrangement or agreement for the extraction,
exploitation or acquisition and use of natural wealth and
resources shall ensure that no raw resources are exported for
beneficiation outside the United Republic. Prohibition of
exploitation
except for benefit
of People
Cap.

ensure that no raw resources are exported for
beneficiation outside the United Republic. Prohibition of
exploitation
except for benefit
of People
Cap.

2
Guarantee of
returns from
natural wealth
and resources
Participation
of People and
Government
Requirement for
beneficiation

2
Guarantee of
returns from
natural wealth
and resources
Participation
of People and
Government
Requirement for
beneficiation

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
(2) For the purpose of subsection (1), in any arrangement or
agreement for the extraction, exploitation or acquisition and
use of natural wealth and resources, there shall be commitment
to establish beneficiation facilities within the United Republic. 10.–(1) An arrangement or agreement for extraction,
exploitation or acquisition and use of natural wealth and
resources shall require that earnings from disposal or dealings
be retained in the banks and financial institutions established
in the United Republic. (2) For the purpose of subsection (1), it shall be unlawful to
keep such earnings in banks or financial institutions outside
the United Republic except where distributed profits are
repatriated in accordance with the laws of Tanzania.

banks or financial institutions outside
the United Republic except where distributed profits are
repatriated in accordance with the laws of Tanzania.

PART III
PROTECTION OF PERMANENT SOVEREIGNTY
11.–(1) Pursuant to Article 27 (1) of the Constitution of the
United Republic of Tanzania, 1977, permanent sovereignty
over natural wealth and resources shall not be a subject of
proceedings in any foreign court or tribunal. (2) For the purpose of subsection (1), disputes arising
from extraction, exploitation or acquisition and use of natural
wealth and resources shall be adjudicated by judicial bodies or
other organs in the United Republic and in accordance with
laws of Tanzania. (3) For the purpose of implementation of subsection (2),
judicial bodies or other bodies in the United Republic and
application of laws of Tanzania shall be acknowledged and
incorporated in any arrangement or agreement. 12. All arrangements or agreements entailing extraction,
exploitation or acquisition and use of natural wealth and
resources may be reviewed by the National Assembly. Retention of
earnings
Prohibition of
proceedings in
foreign courts
Act No. 2 of 2020 s. 100
Review by
National
Assembly

ewed by the National Assembly. Retention of
earnings
Prohibition of
proceedings in
foreign courts
Act No. 2 of 2020 s. 100
Review by
National
Assembly

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650
13.–(1) The Minister may make regulations for the better
carrying out of the provisions of this Act. (2) Without prejudice to the generality of subsection (1),
the regulations shall prescribe:
(a) code of conduct for investors in natural wealth and
resources;
(b) minimum guidelines for inspection, monitoring
and evaluation of investments in natural wealth and
resources; and
(c) anything which is incidental or conducive to the
effective implementation of this Act.

luation of investments in natural wealth and
resources; and
(c) anything which is incidental or conducive to the
effective implementation of this Act.

FIRST SCHEDULE
(Made under section 4(3))
1962 UN GENERAL ASSEMBLY RESOLUTION
ON PERMANENT SOVEREIGNTY OVER
NATURAL RESOURCES (GAR 1803)
The General Assembly,
Recalling its resolutions 523(VI) of 12th January, 1952 and 626(VII)
of 21st December, 1952,
Bearing in mind its resolution 1314(XIII) of 12th December, 1958, by
which it established the Commission on Permanent Sovereignty over
Natural Resources and instructed it to conduct a full survey of the status
of permanent sovereignty over natural wealth and resources as a basic
constituent of the right to self-determination, with recommendations,
where necessary, for its strengthening, and decided further that, in the
conduct of the full survey of the status of the permanent sovereignty of
peoples and nations over their natural wealth and resources, due regard
should be paid to the rights and duties of States under international law
and to the importance of encouraging international co-operation in the
economic development of developing countries,
Bearing in mind its resolution 1515(XV) of 15th December, 1960, in
which it recommended that the sovereign right of every State to dispose
of its wealth and its natural resources should be respected,
Power to make
regulations

recommended that the sovereign right of every State to dispose
of its wealth and its natural resources should be respected,
Power to make
regulations

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E.

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2023]
Considering that any measure in this respect must be based on the
recognition of the inalienable right of all States freely to dispose of their
natural wealth and resources in accordance with their national interests,
and on respect for the economic independence of States,
Considering that nothing in paragraph 4 below in any way prejudices
the position of any Member State on any aspect of the question of the
rights and obligations of successor States and Governments in respect
of property acquired before the accession to complete sovereignty of
countries formerly under colonial rule,
Noting that the subject of succession of States and Governments
is being examined as a matter of priority by the International Law
Commission,
Considering that it is desirable to promote international
co-operation for the economic development of developing countries,
and that economic and financial agreements between the developed
and the developing countries must be based on the principles of
equality and of the right of peoples and nations to self-determination,
Considering that the provision of economic and technical
assistance, loans and increased foreign investment must not be subject
to conditions which conflict with the interests of the recipient State,
Considering the benefits to be derived from exchanges of technical
and scientific information likely to promote the development and use
of such resources and wealth, and the important part which the United
Nations and other international organisations are called upon to play in
that connection,
Attaching particular importance to the question of promoting the
economic development of developing countries and securing their
economic independence,
Noting that the creation and strengthening of the inalienable
sovereignty of States over their natural wealth and resources reinforces
their economic independence,
Desiring that there should be further consideration by the United
Nations of the subject of permanent sovereignty over natural resources
in the spirit of international co-operation in the field of economic
development, particularly that of the developing countries.

ver natural resources
in the spirit of international co-operation in the field of economic
development, particularly that of the developing countries.

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652
PART I
Declares that:
1. The right of peoples and nations to permanent sovereignty over their
natural wealth and resources must be exercised in the interest of their
national development and of the well-being of the people of the State
concerned. 2. The exploration, development and disposition of such resources, as
well as the import of the foreign capital required for these purposes,
should be in conformity with the rules and conditions which the
peoples and nations freely consider to be necessary or desirable with
regard to the authorisation, restriction or prohibition of such activities. 3. In cases where authorisation is granted, the capital imported and
the earnings on that capital shall be governed by the terms thereof, by
the national legislation in force, and by international law.

ital imported and
the earnings on that capital shall be governed by the terms thereof, by
the national legislation in force, and by international law.

The profits
derived must be shared in the proportions freely agreed upon, in each
case, between the investors and the recipient State, due care being taken
to ensure that there is no impairment, for any reason, of that State’s
sovereignty over its natural wealth and resources. 4. Nationalisation, expropriation or requisitioning shall be based on
grounds or reasons of public utility, security or the national interest
which are recognised as overriding purely individual or private
interests, both domestic and foreign. In such cases the owner shall be
paid appropriate compensation, in accordance with the rules in force
in the State taking such measures in the exercise of its sovereignty and
in accordance with international law. In any case where the question
of compensation gives rise to a controversy, the national jurisdiction
of the State taking such measures shall be exhausted. However, upon
agreement by sovereign States and other parties concerned, settlement
of the dispute should be made through arbitration or international
adjudication. 5.

eement by sovereign States and other parties concerned, settlement
of the dispute should be made through arbitration or international
adjudication. 5.

The free and beneficial exercise of the sovereignty of peoples and
nations over their natural resources must be furthered by the mutual
respect of States based on their sovereign equality. 6. International co-operation for the economic development of
developing countries, whether in the form of public or private capital
investments, exchange of goods and services, technical assistance, or
exchange of scientific information, shall be such as to further their
independent national development and shall be based upon respect for
their sovereignty over their natural wealth and resources.

ch as to further their
independent national development and shall be based upon respect for
their sovereignty over their natural wealth and resources.

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
7. Violation of the rights of peoples and nations to sovereignty over
their natural wealth and resources is contrary to the spirit and principles
of the Charter of the United Nations and hinders the development of
international co-operation and the maintenance of peace. 8. Foreign investment agreements freely entered into by or between
sovereign States shall be observed in good faith; States and international
organisations shall strictly and conscientiously respect the sovereignty
of peoples and nations over their natural wealth and resources in
accordance with the Charter and the principles set forth in the present
resolution. PART II
Welcomes the decision of the International Law Commission to speed
up its work on the codification of the topic of responsibility of States for
the consideration of the General Assembly.

tional Law Commission to speed
up its work on the codification of the topic of responsibility of States for
the consideration of the General Assembly.

PART III
Requests the Secretary-General to continue the study of the various
aspects of permanent sovereignty over natural resources, taking into
account the desire of Member States to ensure the protection of their
sovereign rights while encouraging international co-operation in the
field of economic development, and to report to the Economic and
Social Council and to the General Assembly, if possible at its eighteenth
session. SECOND SCHEDULE
(Made under section 4(3))
CHARTER OF ECONOMIC RIGHTS AND DUTIES OF STATES
GA Res. 3281(xxix), UN GAOR, 29th Sess., Supp. No. 31 (1974) 50
The General Assembly,
RECALLING that the United Nations Conference on Trade and
Development, in its resolution 45(III) of 18th May, 1972, stressed the
urgency to establish generally accepted norms to govern international
economic relations systematically and recognised that it is not feasible
to establish a just order and a stable worked as long as a charger to
protect the rights of all countries, and in particular the developing
States, is not formulated.

ust order and a stable worked as long as a charger to
protect the rights of all countries, and in particular the developing
States, is not formulated.

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654
RECALLING FURTHER that in the same resolution it was decided
to establish a Working Group of governmental representatives to draw
up a draft Charter of Economic Rights and Duties of States, which the
General Assembly, in its resolution 3037(XXVII) of 19th December,
1972, decided should be composed of forty Member States. NOTING that, in its resolution 3082(XXVIII) of 6th December, 1973,
it reaffirmed its conviction of the urgent need to establish or improve
norms of universal application for the development of international
economic relations on a just and equitable basis and urged the Working
Group on the Charter of Economic Rights and Duties of States to
complete, as the first step in the codification and development of the
matter, the elaboration of a final draft Charter of Economic Rights
and Duties of States, to be considered and approved by the General
Assembly at its twenty-ninth session.

n of a final draft Charter of Economic Rights
and Duties of States, to be considered and approved by the General
Assembly at its twenty-ninth session.

BEARING IN MIND the spirit and terms of its resolutions
3201(S-VI) and 3202(S-VI) of 1st May, 1974, containing, respectively,
the Declaration and the Programmed of Action on the Establishment
of a New International Economic Order, which underlined the vital
importance of the Charter to be adopted by the General Assembly at
its twenty-ninth session and stressed the fact that the Charter shall
constitute an effective instrument towards the establishment of a new
system of international economic relations based on equity, sovereign
equality and interdependence of the interests of developed and
developing countries. HAVING EXAMINED the report of the Working Group on the
Charter of Economic Rights and Duties of States on its fourth session,
transmitted to the General Assembly by the Trade and Development
Board at its fourteenth session.

c Rights and Duties of States on its fourth session,
transmitted to the General Assembly by the Trade and Development
Board at its fourteenth session.

EXPRESSING ITS APPRECIATION to the Working Group on the
Charter of Economic Rights and Duties of States which, as a result of
the task performed in its four sessions held between February 1973
and June 1974, assembled the elements required for the completion
and adoption of the Charter of Economic Rights and Duties at
the twenty-ninth session of the General Assembly, as previously
recommended.

e completion
and adoption of the Charter of Economic Rights and Duties at
the twenty-ninth session of the General Assembly, as previously
recommended.

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ADOPTS AND SOLEMNLY PROCLAIMS the following Charter:
Charter of economic rights and duties of states
Preamble
The General Assembly,
REAFFIRMING the fundamental purposes of the United Nations,
in particular the maintenance of international peace and security, the
development of friendly relations among nations and the achievement
of international co-operation in solving international problems in the
economic and social fields,
AFFIRMING the need for strengthening international co-operation
for development,
DECLARING that it is a fundamental purpose of the present Charter
to promote the establishment of the new international economic order,
based on equality, sovereign equality, interdependence, common interest
and co-operation among all States, irrespective of their economic and
social systems,
Desirous of contributing to the criterion of conditions for:
(a) the attainment of wider prosperity among all countries and
of higher standards of living for all peoples;
(b) the promotion by the entire international community of
the economic and social progress of all countries, especially
developing countries;
(c) the encouragement of co-operation, on the basis of mutual
advantage and equitable benefits for all peace-loving
States which are willing to carry out the provisions of the
present Charter, in the economic, trade, scientific and
technical fields, regardless of political, economic or social
systems;
(d) the overcoming of main obstacles in the way of economic
development of the developing countries;
(e) the acceleration of the economic growth of developing
countries with a view to bridging the economic gap between
developing and developed countries;
(f) the protection, preservation and enhancement of the
environment.

h a view to bridging the economic gap between
developing and developed countries;
(f) the protection, preservation and enhancement of the
environment.

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2023]
656
MINDFUL of the need to establish and maintain a just and equitable
economic and social order through:
(a) the achievement of more rational and equitable international
economic relations and the encouragement of structural
changes in the world economy;
(b) the creation of conditions which permit the further expansion
of trade and intensification of economic co-operation among
all nations;
(c) the strengthening of the economic independence of
developing countries;
(d) the establishment and promotion of international economic
relations, taking into account the agreed differences in
development of the developing countries and their specific needs,
DETERMINED to promote collective economic security for
development, in particular of the developing countries, with strict
respect for the sovereign equality of each State and through the
co-operation of the entire international community,
CONSIDERING that genuine co-operation among States, based
on joint consideration of and concerted action regarding international
economic problems, is essential for fulfilling the international
community’s common desire to achieve a just and rational development
of all parts of the world.

roblems, is essential for fulfilling the international
community’s common desire to achieve a just and rational development
of all parts of the world.

STRESSING the importance of ensuring appropriate conditions for
the conduct of normal economic relations among all States, irrespective
of differences in social and economic systems, and for the full respect
of the rights of all peoples, as well as strengthening instruments of
international economic co-operation as a means for the consolidation
of peace for the benefit of all. CONVINCED of the need to develop a system of international economic
relations on the basis of sovereign equality, mutual and equitable benefit and
the close interrelationship of the interests of all States,
REITERATING that the responsibility for the development of every
country rests primarily upon itself but that concomitant and effective
international cooperation is an essential factor for the full achievement
of its own development goals. FIRMLY CONVINCED of the urgent need to evolve a substantially
improved system of international economic relations,
SOLEMNLY ADOPTS the present Charter of Economic Rights and
Duties of States.

olve a substantially
improved system of international economic relations,
SOLEMNLY ADOPTS the present Charter of Economic Rights and
Duties of States.

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2023]
CHAPTER I
Fundamentals of international economic relations
Economic as well as political and other relations among States shall be
governed, inter alia, by the following principles:
(a) sovereignty, territorial integrity and political independence
of States;
(b) sovereign equality of all States;
(c) non-aggression;
(d) non-intervention;
(e) mutual and equitable benefit;
(f) peaceful coexistence;
(g) equal rights and self-determination of peoples;
(h) peaceful settlement of disputes;
(i) remedying of injustices which have been brought about
by force and which deprive a nation of the natural means
necessary for its normal development;
(j) fulfillment in good faith of international obligations;
(k) respect for human rights and international obligations;
(l) no attempt to seek hegemony and spheres of influence;
(m) promotion of international social justice;
(n) international co-operation for development;
(o) free access to and from the sea by land-locked countries
within the framework of the above principles.

international co-operation for development;
(o) free access to and from the sea by land-locked countries
within the framework of the above principles.

CHAPTER II
Economic rights and duties of states
Article 1
Every State has the sovereign and inalienable right to choose its
economic system as well as its political, social and cultural systems in
accordance with the will of its people, without outside interference,
coercion or threat in any form whatsoever. Article 2
1. Every State has and shall freely exercise full permanent sovereignty,
including possession, use and disposal, over all its wealth, natural
resources and economic activities. 2. Each State has the right:
(a) to regulate and exercise authority over foreign investment
within its national jurisdiction in accordance with its
laws and regulations and in conformity with its national
objectives and priorities. No State shall be compelled to grant
preferential treatment to foreign investment;

ions and in conformity with its national
objectives and priorities. No State shall be compelled to grant
preferential treatment to foreign investment;

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658
(b) to regulate and supervise the activities of transnational
corporations within its national jurisdiction and take
measures to ensure that such activities comply with its
laws, rules and regulations and conform with its economic
and social policies. Transnational corporations shall not
intervene in the internal affairs of a host State. Every State
should, with full regard for its sovereign rights, cooperate
with other States in the exercise of the right set forth in this
subparagraph;
(c) to nationalise, expropriate or transfer ownership of foreign
property, in which case appropriate compensation should be
paid by the State adopting such measures, taking into account
its relevant laws and regulations and all circumstances that
the State considers pertinent.

d by the State adopting such measures, taking into account
its relevant laws and regulations and all circumstances that
the State considers pertinent.

In any case where the question
of compensation gives rise to a controversy, it shall be settled
under the domestic law of the nationalising State and by its
tribunals, unless it is freely and mutually agreed by all States
concerned that other peaceful means be sought on the basis
of the sovereign equality of States and in accordance with the
principle of free choice of means. Article 3
In the exploitation of natural resources shared by two or more countries,
each State must co-operate on the basis of a system of information and
prior consultations in order to achieve optimum use of such resources
without causing damage to the legitimate interest of others. Article 4
Every State has the right to engage in international trade and other
forms of economic co-operation irrespective of any differences in
political, economic and social systems. No State shall be subjected
to discrimination of any kind based solely on such differences.

any differences in
political, economic and social systems. No State shall be subjected
to discrimination of any kind based solely on such differences.

In
the pursuit of international trade and other forms of economic
co-operation, every State is free to choose the forms of organisation of
its foreign economic relations and to enter into bilateral and multilateral
arrangements consistent with its international obligations and with the
needs of international economic co-operation. Article 5
All States have the right to associate in organisations of primary
commodity producers in order to develop their national economies,
to achieve stable financing for their development and, in pursuance of
their aims, to assist in the promotion of sustained growth of the world
economy. In particular accelerating the development of developing

pursuance of
their aims, to assist in the promotion of sustained growth of the world
economy. In particular accelerating the development of developing

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
countries. Correspondingly, all States have the duty to respect that
right by refraining from applying economic and political measures that
would limit it. Article 6
It is the duty of States to contribute to the development of international
trade of goods, particularly by means of arrangements and by the
conclusion of long-term multilateral commodity agreements, where
appropriate, and taking into account the interest of producers and
consumers. All States share the responsibility to promote the regular
flow and access of all commercial goods traded at stable, remunerative
and equitable prices, thus contributing to the equitable development of
the world economy, taking into account, in particular, the interests of
developing countries. Article 7
Every State has the primary responsibility to promote the economic,
social and cultural development of its people.

of
developing countries. Article 7
Every State has the primary responsibility to promote the economic,
social and cultural development of its people.

To this end, each State
has the right and the responsibility to choose its means and goals of
development, fully to mobilize and use its resources, to implement
progressive economic and social reforms and to ensure the full
participation of its people in the process and benefits of development. All States have the duty, individually and collectively, to co-operate in
eliminating obstacles that hinder such mobilization and use. Article 8
States should co-operate in facilitating more rational and equitable
international economic relations and in encouraging structural
changes in the context of a balanced world economy in harmony with
the needs and interests of all countries, especially developing countries,
and should take appropriate measures to this end. Article 9
All States have the responsibility to co-operate in the economic,
social, cultural, scientific and technological fields for the promotion of
economic and social progress throughout the world, especially that of
the developing countries.

ientific and technological fields for the promotion of
economic and social progress throughout the world, especially that of
the developing countries.

Article 10
All States are juridically equal and, as equal members of the
international community, have the right to participate fully and
effectively in the international decision-making process in the solution
of world economic, financial and monetary problems, inter alia,
through the appropriate international organisations in accordance with
their existing and evolving rules, and to share in the benefits resulting
therefrom.

gh the appropriate international organisations in accordance with
their existing and evolving rules, and to share in the benefits resulting
therefrom.

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660
Article 11
All States should co-operate to strengthen and continuously improve the
efficiency of international organisations in implementing measures to
stimulate the general economic progress of all countries, particularly of
developing countries, and therefore should co-operate to adapt them, when
appropriate, to the changing needs of international economic co-operation. Article 12
1. States have the right, in agreement with the parties concerned, to
participate in subregional, regional interregional co-operation in the
pursuit of their economic and social development.

ith the parties concerned, to
participate in subregional, regional interregional co-operation in the
pursuit of their economic and social development.

All States engaged
in such co-operation have the duty to ensure that the policies of
those groupings to which they belong correspond to the provisions
of the present Charter and are outward-looking, consistent with their
international obligations and with the needs of international economic
co-operation, and have full regard for the legitimate interests of third
countries, especially developing countries. 2. In the case of groupings to which the States concerned have
transferred or may transfer certain competences as regards matters
that come within the scope of the present Charter, its provisions shall
also apply to those groupings in regard to such matters, consistent
with the responsibilities of such States as members of such groupings. Those States shall co-operate in the observance by the groupings of the
provisions of this Charter. Article 13
1. Every State has the right to benefit from the advances and development
in science and technology for the acceleration of its economic and
social development. 2.

e has the right to benefit from the advances and development
in science and technology for the acceleration of its economic and
social development. 2.

All States should promote international scientific and technological
co-operation and the transfer of technology, with proper regard for
all legitimate interests including, inter alia, the rights and duties of
holders, suppliers and recipients of technology. In particular, all States
should facilitate the access of developing countries to the achievements
of modern science and technology, the transfer of technology and the
creation of indigenous technology for the benefit of the developing
countries in forms and in accordance with procedures which are suited
to their economies and their needs. 3. Accordingly, developed countries should co-operate with the
developing countries in the establishment, strengthening and
development of their scientific and technological infrastructures and
their scientific research and technological activities so as to help to
expand and transform the economies of developing countries.

nfrastructures and
their scientific research and technological activities so as to help to
expand and transform the economies of developing countries.

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
4. All Sates should co-operate in research with a view to evolving further
internationally accepted guidelines or regulations for the transfer
of technology, taking fully into account the interest of developing
countries. Article 14
Every State has the duty to co-operate in promoting a steady and
increasing expansion and liberalization of world trade and an
improvement in the welfare and living standards of all peoples, in
particular those of developing countries. Accordingly, all States should
co-operate, inter alia, towards the progressive dismantling of obstacles
to trade and the improvement of the international framework for the
conduct of world trade and, to these ends, co-ordinated efforts shall be
made to solve in an equitable way the trade problems of all countries,
taking into account the specific trade problems of the developing
countries.

be
made to solve in an equitable way the trade problems of all countries,
taking into account the specific trade problems of the developing
countries.

In this connection, States shall take measures aimed at
securing additional benefits for the international trade of developing
countries so as to achieve a substantial increase in their foreign exchange
earnings, the diversification of their exports, the acceleration of the rate
of growth of their trade, taking into account their development needs,
an improvement in the possibilities for these countries to participate
in the expansion of world trade and a balance more favourable to
developing countries in the sharing of the advantages resulting from
this expansion, though, in the largest possible measure, a substantial
improvement in the conditions of access for the products of interest
to the developing countries and, wherever appropriate, measures
designed to attain stable, equitable and remunerative prices for primary
products.

est
to the developing countries and, wherever appropriate, measures
designed to attain stable, equitable and remunerative prices for primary
products.

Article 15
All States have the duty to promote the achievement of general and
complete disarmament under effective international control and to
utilize the resources released by effective disarmament measures for the
economic and social development of countries, allocating a substantial
portion of such resources as additional means for the development
needs of developing countries. Article 16
1. It is the right and duty of all States, individually and collectively, to
eliminate colonialism, apartheid, racial discrimination, neo-colonialism
and all forms of foreign aggression, occupation and domination,
and the economic and social consequences thereof, as a prerequisite
for development. States which practise such coercive policies are
economically responsible to the countries, territories and peoples
affected for the restitution and full compensation for the exploitation

olicies are
economically responsible to the countries, territories and peoples
affected for the restitution and full compensation for the exploitation

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662
and depletion of, and damages to, the natural and all other resources
of those countries, territories and peoples. It is the duty of all States to
extend assistance to them. 2. No State has the right to promote or encourage investments that may
constitute an obstacle to the liberation of a territory occupied by force. Article 17
International co-operation for development in the shared goal and
common duty of all States. Every State should co-operate with the
efforts of developing countries to accelerate their economic and social
development by providing favourable external conditions and by
extending active assistance to them, consistent with their development
needs and objectives, with strict respect for the sovereign equality of
States and free of any conditions derogating from their sovereignty.

velopment
needs and objectives, with strict respect for the sovereign equality of
States and free of any conditions derogating from their sovereignty.

Article 18
Developed countries should extend, improve and enlarge the system of
generalized non-reciprocal and non-discriminatory tariff preferences
to the developing countries consistent with the relevant agreed
conclusions and relevant decisions as adopted on this subject, in the
framework of the competent international organisations. Developed
countries should also give serious consideration to the adoption of other
differential measures, in areas where this is feasible and appropriate
and in ways which will provide special and more favourable treatment,
in order to meet the trade and development needs of the developing
countries. In the conduct of international economic relations the
developed countries should endeavour to avoid measures having a
negative effect on the development of the national economies of the
developing countries, as promoted by generalized tariff preferences and
other generally agreed differential measures in their favour.

economies of the
developing countries, as promoted by generalized tariff preferences and
other generally agreed differential measures in their favour.

Article 19
With a view to accelerating the economic growth of developing countries
and bridging the economic gap between developed and developing
countries, developed countries should grant generalized preferential,
non-reciprocal and non-discriminatory treatment to developing
countries in those fields of international economic co-operation where
it may be feasible. Article 20
Developing countries should, in their efforts to increase their over-all
trade, give due attention to the possibility of expanding their trade
with socialist countries, by granting to these countries conditions for
trade not inferior to those granted normally to the developed market
economy countries.

alist countries, by granting to these countries conditions for
trade not inferior to those granted normally to the developed market
economy countries.

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
Article 21
Developing countries should endeavour to promote the expansion of
their mutual trade and to this end may, in accordance with the existing
and evolving provisions and procedures of international agreements
where applicable, grant trade preferences to other developing countries
without being obliged to extend such preferences to developed countries,
provided these arrangements do not constitute an impediment to
general trade liberalization and expansion. Article 22
1. All States should respond to the generally recognised or mutually
agreed development needs and objectives of developing countries
by promoting increased net flows of real resources to the developing
countries from all sources, taking into account any obligations and
commitments undertaken by the States concerned, in order to reinforce
the efforts of developing countries to accelerate their economic and
social development. 2.

undertaken by the States concerned, in order to reinforce
the efforts of developing countries to accelerate their economic and
social development. 2.

In this context, consistent with the aims and objectives mentioned
above and taking into account any obligations and commitments
undertaken in this regard, it should be their endeavour to increase
the net amount of financial flows from official sources to developing
countries and to improve the terms and conditions thereof. 3. The flow of development assistance resources should include
economic and technical assistance. Article 23
To enhance the effective mobilization of their own resources, the
developing countries should strengthen their economic co-operation
and expand their mutual trade so as to accelerate their economic and
social development. All countries, especially developed countries,
individually as well as through the competent international
organisations of which they are members, should provide appropriate
and effective support and co-operation. Article 24
All States have the duty to conduct their mutual economic relations in a
manner which takes into account the interest of other countries. In particular,
all States should avoid prejudicing the interests of developing countries.

er which takes into account the interest of other countries. In particular,
all States should avoid prejudicing the interests of developing countries.

Article 25
In furtherance of world economic development, the international
community, especially its developed members, shall pay special
attention to the particular needs and problems of the least developed

the international
community, especially its developed members, shall pay special
attention to the particular needs and problems of the least developed

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664
among the developing countries, of land-locked developing countries
and also island developing countries, with a view to helping them to
overcome their particular difficulties and thus contribute to their
economic and social development. Article 26
All States have the duty to coexist in tolerance and live together
in peace, irrespective of differences in political, economic, social
and cultural systems, and to facilitate trade between States having
different economic and social systems. International trade should be
conducted without prejudice to generalized non-discriminatory and
non-reciprocal preferences in favour of developing countries, on the
basis of mutual advantage, equitable benefits and the exchange of
most-favoured-nation treatment. Article 27
1. Every State has the right to enjoy fully the benefits of world invisible
trade and to engage in the expansion of such trade. 2.

eatment. Article 27
1. Every State has the right to enjoy fully the benefits of world invisible
trade and to engage in the expansion of such trade. 2.

World invisible trade, based on efficiency and mutual and equitable
benefit, furthering the expansion of the world economy, is the common
goal of all States. The role of developing countries in world invisible
trade should be enhanced and strengthened consistent with the above
objectives, particular attention being paid to the special needs of
developing countries. 3. All States should co-operate with developing countries in their
endeavours to increase their capacity to earn foreign exchange from
invisible transactions, in accordance with the potential and needs of each
developing country and consistent with the objectives mentioned above. Article 28
All States have the duty to co-operate in achieving adjustments in the
prices of exports of developing countries in relation to prices of their
imports so as to promote just and equitable terms of trade for them,
in a manner which is remunerative for producers and equitable for
producers and consumers.

o as to promote just and equitable terms of trade for them,
in a manner which is remunerative for producers and equitable for
producers and consumers.

Chapter III
Common responsibilities towards the international community
Article 29
The sea-bed and ocean floor and the subsoil thereof, beyond the
limits of national jurisdiction, as well as the resources of the area,
are the common heritage of mankind. On the basis of the principles

, beyond the
limits of national jurisdiction, as well as the resources of the area,
are the common heritage of mankind. On the basis of the principles

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THE NATURAL WEALTH AND RESOURCES (PERMANENT SOVEREIGNTY) ACT [CAP. 449 R.E. 2023]
adopted by the General Assembly in resolution 2749 (XXV) of 17th
December, 1970, all States shall ensure that the exploration of the area
and exploitation of its resources are carried out exclusively for peaceful
purposes and that the benefits derived therefore are shared equitably
by all States, taking into account the particular interest and needs of
developing countries; an international regime applying to the area and
its resources and including appropriate international machinery to give
effect to its provisions shall be established by an international treaty of
a universal character, generally agreed upon. Article 30
The protection, preservation and enhancement of the environment
for the present and future generations is the responsibility of all
States. All States shall endeavour to establish their own environment
and development policies in conformity with such responsibility.

sibility of all
States. All States shall endeavour to establish their own environment
and development policies in conformity with such responsibility.

The
environmental policies of all States should enhance and not adversely
affect the present and future development potential of developing
countries. All States have the responsibility to ensure that activities
within their jurisdiction or control do not cause damage to the
environment of other States or of areas beyond the limits of national
jurisdiction. All States should co-operate in evolving international
norms and regulations in the field of the environment. Chapter IV
Final provisions
Article 31
All States have the duty to contribute to the balanced expansion of the
world economy, taking duly into account the close interrelationship
between the well-being of the developed countries and the growth
and development of the developing countries, and the fact that the
prosperity of the international community as a whole depends upon
the prosperity of its constituent parts. Article 32
No State may use or encourage the use of economic, political or any
other type of measures to coerce another State in order to obtain from
it the subordination of the exercise of its sovereign rights. Article 33
1.

any
other type of measures to coerce another State in order to obtain from
it the subordination of the exercise of its sovereign rights. Article 33
1.

The present Charter shall not be construed as impairing or derogating
from the provisions of the Charter of the United Nations or actions
taken into pursuance thereof.

er shall not be construed as impairing or derogating
from the provisions of the Charter of the United Nations or actions
taken into pursuance thereof.

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666
2. In their interpretation and application, the provisions of the present
Charter are interrelated and each provision should be construed in the
context of the other provisions.
Article 34
An item on the Charter of Economic Rights and Duties of States shall
be included in the agenda of the General Assembly at its thirtieth
session, and thereafter on the agenda of every fifth session, in this way
a systematic and comprehensive consideration of the implementation
of the Charter, covering both progress achieved and any improvement
and additions which might become necessary, would be carried out
and appropriate measures recommended. Such consideration should
take into account the evolution of all the economic, social, legal and
other factors related to the principles upon which the present Charter
is based and on its purpose.”