How LNG Project Will Lead to Shared Prosperity and Better Tanzania for Future Generation

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With the signing of the host government agreement(HGA) for the liquefied natural gas(LNG), there is tremendous excitement and opportunity in Tanzania, and the time is now to plant seeds of long-term investment.

But the key question is how the LNG project will lead to prosperity for everyone.

Here are four ways to ensures LNG lead to shared prosperity.

1.Establishing homegrown Tanzanian companies
It is vital to establish local companies that international oil and gas companies and their foreign primary contractors will benefit from the availability of local goods and services that meet industry standards. These sustainable local business will accelerate the sustainable development of Tanzania’s energy sector.

It will also help the government collect more taxes, which will use this money to build healthcare facilities, schools, roads, and infrastructures and create more employment for our growing youth population.

2.Helping Tanzanian companies raise capital from private investors.
I have encountered a usual obstacle in the way of growing sustainable business in Tanzania, The most apparent being financing.
You discover banks charges as much as 21 percent interest on loans. The high costs of debts in an emerging market like Tanzania have led to bankruptcy and business failure. To fix this issue, we should help local businesses raise capital from private investors or equity.

3.Training and Development.
Like many emerging oil and gas markets, There is a lack of oil and gas experinece in Tanzania. So training and development, especially in these skilled craft such as welders, pipefitters, and NDT inspectors,would help create a pipeline of qualified and certified local people who will not only build Tanzania LNG projects but can compete globally.

4.Vetting and screening international investors and foreign companies.

I have encountered many international companies looking to enter Tanzania’s energy sector and make quick back without any best interest or strategy to be fully supportive to give back and develop Tanzanians and their industry..
So, not just come into Tanzania market and offer jobs, but come to this country and offer career paths. Offer things like help build schools, hospitals, medical care and help build infrastructure.
Screening investors and foreign firms and supporting only those with long term vision, culture , ethics and risk tolerance to succeed in Tanzania.

Liquefied natural gas(LNG) projects take many years, which will benefit the companies that build those facilities and support the construction project.

 

I hope this helps

 

 

 

 

 

Hussein Boffu runs a consultancy helps you turn your strategic vision into real-world action. Reach out to him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.