BoT, law firm partner on gas economy’s awareness drive

Bank of Tanzania (BoT) and Rex Attorney, a local law firm in Dar es Salaam, have partnered in hosting a series of breakfast meetings to strategise on the optimal exploitation of natural gas in the southern regions of Lindi and Mtwara.

“We want to get prepared for the gas boom in the economy. The government, the private sector, the academia and the public should get prepared for the imminent gas economy,” said Amb. Mwanaidi Sinare Maajar, a senior partner of the law firm in Dar es Salaam over the weekend.

Tanzania is estimated to have 42 trillion cubic feet (tcf) of recoverable natural gas reserves, with discoveries offshore of Tanzania and Mozambique's waters tipping the country of becoming the world's third-largest exporter of natural gas. And as expected, investments are already soaring.

According to the World Investment Report of 2013 Tanzania registered 869 investment projects worth 1.4 billion US dollars (over 2trn/-) in 2012, becoming second after Uganda which led in attracting FDIs in the East African Region.

The planned breakfast meetings will provide opportunities for stakeholders to discuss measures of helping the government, the private sector and the community to prepare for the gas economy that is likely to fast track Tanzania to a middle income country by 2025.

Amb. Maajar said Tanzanians were not adequately prepared for the mining boom and that is why there are concerns even today that the mining companies were shortchanging the country. “This time the train will not leave us. We will board the train,” she said.

Tanzania experienced a mining boom from early 2000’s when major global mining companies invested in the country’s abundant mineral resources. To date, the mining sector contributes about 4.6 per cent to the national economy against the projections of 10 per cent contribution by 2025.

Tanzania is ranked fourth in gold production in Africa after South Africa, Ghana and Mali. The Bank of Tanzania (BoT) Director of Economic Research and Policy, Dr Joseph Massawe, said it was inevitable for the public to understand what the gas economy would entail and get prepared to receive the cash from the boom.

“It is extremely important for the government, private sector and the general public to understand what it means when we have impending gas boom in the economy,” said Dr Massawe, challenging the media to play a leading role in raising public awareness on the impending gas economy.

Source: The Daily News, reported by Henry Lyimo from Dar es Salaam

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