TZ SET TO BECOME GAS ECONOMY

 

Recent discoveries of natural gas off the coast of Tanzania have led to a projection that Tanzania could become a major producer of natural gas in a decade. This fact now sees various local, national and multinational companies committing billions of dollars foe exploration in this lucrative resource.

Various companies, such as Startoil and others are already in place with many incentive packages. While the gas economy is still at a fledgling stage, tangible examples can be drawn from Equatorial Guinea, which is marking the 24th anniversary since the discoveries of large deposits in the 1990s. To show the natural gas’s multiplier effect on the economy, Equatorial Guinea is the only African countries among the 10 richest countries in the world with $44,100 on per capita criteria. Despite that prestige, the country has the biggest gap between the rich and poor in the world as most people still live in poverty and corruption is common.

Inclusive policy is the only insurance for all gender and ethnicity groups to enjoy equally policy fruits. Policies, which address the gap between the rich and poor, need more votes to be cast. The degree of policy inclusivity is justified by complaints echoed from various parts of Tanzania, in Nkana mines from Mbeya and Tunduru in Ruvuma, just to cite a few examples. To cross all limits, policy formulation and implementation should take into account many factors in question. For example, extraction of steel and iron consumes a lot of water and electricity, something that should be looked into to make the best out of it.

While the celebration of Mtwara gas opportunities is still fresh, other valuable minerals of iron and steel, commercial production in Liganga and Mchuchuma is going to start in 2018. Liganga will be the biggest in the country with estimated reserves of over 1.2 billion tonnes. 

Export of iron and steel not only will multiply foreign direct investments and take a lead among East African countries topped by Uganda in 5 years ago, but also will reduce the importation of steel and iron for bridges and tall buildings. Production is expected to rank Tanzania among the top four iron producers on the continent. There are a lot of briefing lessons Tanzania can learn from Ireland, which is ranked 8th among the 10 richest countries worldwide with $45,600 on per capita criteria. Its major industries include silver, steel, aluminum, lead, gypsum and barite. Others are textile & clothing, brewing and food production.

Irish people enjoy the best quality of life than any other country on the globe. This justifies how much they are keen on setting priorities and strategic planning on their scarce resources versus unlimited wants.

Tanzania Vision 2025 is to become a middle economy country, an embarked move that must be aided with accountability and transparency in allocation and distribution of resources from local to national levels. Keeping in mind that what will be Tanzania’s education in 2025 is what will be Tanzania’s economy in 2025. Tanzania is blessed with abundant natural resources ranging from tanzanite, gold, tin, uranium, coal, iron and steel, natural gas, water bodies, forests, national parks, just to mention a few as the list is time consuming. Peace and stability, resource blessings and a conducive business climate are placing Tanzania on the world map.

The author is an economist and St Metthew’s Sec School teacher. liandeli.leonidas@gmail.com, +255 754 98 80 50, +255 712 533 772