Tanzania is one of ten countries in Africa with natural gas resources. The East African nation of more than 55 million people stands on 57.74 Trillion Cubic Feet (TCF) of natural gas, located in the SongoSongo gas fields in Lindi and Mnazi Bay in Mtwara regions.
According to Ministry of Energy records, up to now, Tanzania has consumed about 0.5TCF of its natural gas, thus, more exploration is underway to make Tanzania the next-sub-Saharan powerhouse in natural gas. Hence, this draws the most important question: How can Tanzania transform its natural gas potential via effective participatory natural gas economy governance?
Natural Resource Governance Institute (NRGI) governance index depicts an important narrative in this context. According to the NRGI-2017 governance index, Tanzania oil and gas (O&G) sector scored 53 points out of 100 (per NRGI standards, it has a weak position), making Tanzania the 39th state out of 81 analyzed globally.
In the same context, on value realization, which comprises licensing, taxation, local impact and state-owned enterprises, Tanzania scored 65 points (12th/89).
In revenue management, including national budgeting, subnational resource revenue, and sovereign wealth funds, Tanzania scored 40 points (48th/89).
On the enabling environment comprised of civic education, right awareness, and empowerment as well as accountability, government effectiveness, regulatory quality, the rule of law, control of corruption and political stability, Tanzania recorded 53 points (40th/89).
Mtwara economy landscape
Mtwara region has the richest cashew nut cultivation potential in Tanzania. Mtwara is the shining light of cashew nut production and exports in Tanzania. Despite recent drawbacks in cashew nut auctions in the fiscal year 2017/2018, Mtwara stands strong with over 100,000 tons of cashew yield per year.
According to the region’s socio-economic profile, this strategic region occupies 16,710 square kilometres in landmass, making up 1.7 per cent of Tanzania’s total mainland. At the same time, 2018 population predictions by the National Bureau of Statistics show the region to have more than 1.4 million people.
The region’s economic affairs encompass agriculture, fisheries, services, and industrial activities. Hence, the new natural gas landscape has moulded a new perspective within the social-economic parameters, which have sparked necessary conversations on how and when the region can emerge as a solid-economic pillar for a natural gas success story in Tanzania.
In 2013, the region saw the emergence of a new natural gas economy landmark, involving foreign and domestic or state-owned natural gas companies venturing for a stake in the natural resource, including the 532 Kilometer (KM) natural gas pipeline construction from Mtwara to commercial-pulse Dar es Salaam, costing over $1.23 billion.
Why natural gas economy governance matters?
According to the International Union for Conservation of Nature (ICUN), natural gas economy governance commands the norms, institutions and processes that determine how power and responsibilities over natural resources are exercised, how decisions impact the constituents of the region and how citizens (in this case people in Mtwara and the rest of Tanzania), women, men, indigenous peoples, and local communities, participate and benefit from the management of natural resources.
Tanzania has only explored a small fraction of the natural gas reserves (0.5 TCF out of 57.74TCF), and in order to explore further socio-economic and political affairs ought to be aligned perfectly to ensure that the production of natural gas comes with blessings and not a curse, as manifested in some African nations.
A Tanzanian policy research think tank–Economic and Social Research Foundation (ESRF)–converged with local government authority officials, to discuss how governance gaps in planning and management of the natural gas economy in Mtwara can be addressed.
According to the ESRF report, which highlighted key aspects of the discussion published in July 2017, worked out comprehensive issues from stakeholders, fenced within inter-government cooperation and citizen involvement, management of revenues and expenditures, sustainable development efforts, land-use conflicts, social and environmental impacts, and seizing entrepreneurial opportunities.
As the report indicates, inter-government cooperation and citizen involvement which has been a key denominator in the success or failure of natural resource governance over the African landscape, can close the knowledge gap that exists via a deliberate process organized at all levels (regional, district and lower levels), but also–via ensuring feedback information among officials and the citizens of Mtwara.
Further, regional and district levels must be staffed with energy sector experts who translate technical issues into the local context. Consequently, it enabled the domestication of natural gas complex issues and closing of the knowledge gap to these communities.
“Managing expectations deserves high priority. The citizens need to be helped to appreciate that benefits from the gas economy can be influenced by how they position themselves and what preparations they actually make to take advantage of the gas economy,” the report argues.
Management of revenue and expenditures is important in this context, it is argued that the local government should provide knowledge on the meaning and application of various kinds of non-tax revenue sources especially royalties and service levies and knowledge on domestic use and transported gas to Dar es Salaam for further internal consumption, including power generation in the national grid and for onward export.
According to the Ministry of Energy, until May 2019, Tanzania Petroleum Development Corporation (TPDC) had collected over $210 million (from gas sales and exploration), exceeding the intended target of over $171 million for the fiscal year 2018/2019.
Additionally, it was found that the revenue required to fund development projects should be spent in accordance with planned activities.
More importantly, the regional government should ensure that monitoring of the enforcement of laws and regulations relating to the use of finances and education in the communities is actually implemented.
“Action should be taken to provide more education on how these dedicated groups may benefit from the gas economy and facilitate identification of opportunities of the benefits from the gas economy and awareness on what actions they should take to harness opportunities from the gas economy”, the report argues.
Unequivocally, the report also highlighted the role of local governments in assisting local entrepreneurs in securing reliable markets for their locally made products, but also providing them with awareness in adding value to their activities. However, more importantly, it was argued that the region could establish a marketing desk entrusted with the task of networking with other market development institutions in the country and beyond to improve access to appropriate markets.
Source: allafrica.com
Share this news
This Year’s Most Read News Stories
Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
Zanzibar, Tanzania: Inflation hits five-year high
With Covid-19 and the war in Ukraine being blamed after inflation in Tanzania and Zanzibar rose to 4.5 this year and is climbing – the highest rate since November 2017Continue Reading
Huduma Zimezorota Hospitali Ya Rufaa Mnazi Mmoja Zanzibar
Huduma katika Hospitali ya Rufaa ya Mnazi Mmoja Zanzibar zimezidi kuzorota huku wananchi wengi wakilalamikia uongozi wa Hospitali hiyo na watendaji wake.Continue Reading
