Leveraging a Large Capital Investment to Develop Local Value Chains

‘Local Content’ in the Construc on of Tanzania’s LNG Facility

SOURCE: World Bank Group

The discovery of large, deep-sea, natural gas reserves in Southern Tanzania and plans for their development have sparked a national discussion about how “local content” can be maximized in a way that benefits the economy as a whole.

Energy production is not foreign to the country. Gas has been  owing from the on-shore and shallow water reserves of Songo Songo and Mnazi Bay since the mid-2000s, but the scale of those fields is limited.

In contrast, the off-shore reserves discovered in 2012 by a consortium of international oil companies (IOCs)3 are major  finds that raised projections of total reserves to over 57 tcf4 and carry with them the potential to transform the country into an emerging, global, energy hot-spot.

So it is in keeping with that good news that government and business leaders now want to know how those assets can be fully leveraged to strengthen and diversify Tanzania’s domestic economy and generate local employment.publications.

Free and open debate is not only vital for Tanzania’s faltering democracy, it’s also indispensable for good macroeconomic governance.

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