Following a workshop by Tanzania’s National Economic Empowerment Council (NEEC) and the African Natural Resources Centre of the African Development Bank (AfDB), the Bank has approved a $29.8 million loan to mobilize its domestic resources.
The funds are expected to enable the country realize the full potential of its natural gas whose large offshore discoveries can double its GDP, give access to energy and facilitate industrial development.
AfDB’s Country Manager for Tanzania (OIC) Chidozie Emenuga said, “The AfDB is stepping up its support to the Government of the United Republic of Tanzania to develop the gas sector that is potentially transformative for the country.”
Through a sound regulatory framework to manage the reserves and attract investment; support for the government to ensure Tanzania gets the best deals; and formulation of local content policies the project will create jobs in the gas sector and help Tanzania get the best value from its natural gas resources.
The country will leverage on local content initiatives to ensure that the local private sector can benefit from large foreign investments estimated at $40 billion to develop production and export facilities.
Gas domestication which will enable access of the resource at regional level, develop regional infrastructure and private sector development is another priority for the Government