Vast discoveries of gas along the
Indian Ocean are expected to boost Gross Domestic Product (GDP) to over
20 per cent soon or later helping the country realize a brighter future
provided there are excellent policies in place.
This scenario will save the nation from skirmishes like the incident
that occurred in Mtwara Region a few weeks ago.
This was said on Tuesday
in Dar es Salaam by the Brazilian Ambassador to Tanzania, Mr Francisco
Luz, during a tour to the Tanzania Standard Newspapers (TSN)
headquarters which is located on Mandela road.
TSN is the publisher of Daily News,
Sunday News, HabariLeo, HabariLeo Jumapili and SpotiLeo.
"Economic growth
must create social inclusion," Mr Luz said, adding that, "Clear
transparency on the royalties and other gains from gas resources as well
as how the benefits are shared will build public confidence
particularly in Mtwara and surrounding areas."
The ambassador said that what transpired
in Mtwara Region during the gas row was a source of miscommunication
between respective authorities and the people.
However, both parties
should understand their role. They should ensure that the resources
benefit all and the nation, the envoy said.
He urged the government to
increase investments in gas consumption as way of capacitating low
income earners to make use of it as a first source of energy in the
first place but also as a way of protecting the endangered environments.
Mr Luz said Petrobras, a Brazilian
company that is conducting drilling in Southern Tanzania is holding 50
per cent stakes in two offshore exploratory blocks 5 and 6, with water
depths of 1,700 and 1,800 metres, respectively.
The firm will embark on
drilling blocks 6 and 8 next year.The firm will operate from either
Kilwa or Zanzibar not directly from Mtwara Region because block 5 is
situated some 300 kms in the deep sea from the shore.
The Brazilian ambassador underscored the
need to look at the possibility of foreign markets for the gas drilled
from the deep sea because the quantity obtained on onshore was enough
for the country's use for 50 years to come.
The project is expected to
earn the country enormous foreign currencies. Mr Luiz said the current
power consumption for Mtwara Region was only 8 MW but even after
establishment of cement and other factories will only use not more than
50 MW which could be supplied by the onshore sources.
He hence called for a venture for
external markets. He also said that more firms are expected to come to
explore opportunities in the construction and energy sector which was
still having vast investment potentials.
In Brazil, for example,
hydropower constitutes about 80 per cent of the total energy which was
still the cheapest source of power.
According to him, political relations
between the two countries were good and in the near future five
agreements on agriculture, health, livestock, HIV and child labour will
be signed. The envoy hinted that a team of agriculture experts would
come to Tanzania next week to explore opportunities in cashew farming.
Despite the healthy political situation
between Tanzania and Brazil, Mr Luiz said, trade between the two
countries was still small. It is estimated to be at around 70,000 US
dollars a year particularly in precious metals.Earlier, the TSN Acting
Managing Editor, Mr Gabriel Nderumaki, said 'Daily News' and its sister
papers would promote the healthy relations between the two nations.
He added that since Brazil has an advanced economy and technology, it has a lot to offer to Tanzania's growth.
Source: The Daily News, www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam