Why all these myths about oil, gas sector?

By Editor

Editorial Cartoon

 

It’s now just about official: Tanzania is rich in natural gas and, though possibly to a less extent, oil.

Indications are that there has never been any secret about this and that it is highly likely Mwalimu Julius Nyerere was fully aware of this fact.

It is argued that the Founding President didn’t say much about this in public because he deemed it wise to wait until the country had bid enough numbers of educated people who would take charge of the energy industry.

But things have since changed much. Owing to factors such as persistent power outages, the idea now appears to be full-throttle exploitation these energy resources.

Accordingly, the major topic of discussion in Tanzania’s mass media, business and various other circles right now is the degree to which Tanzanian nationals should invest in the sector.

Many want locals to have exclusive rights to do or, in the worst-case scenario, to have majority shares in the business so that they “enjoy” the benefits accruing from their natural resources more than anyone else.

This was given extra weight recently during talks between Tanzania Private Sector Foundation executives and a business delegation from Spain. In the course of the discussions, it was stressed that Tanzania can benefit most from its gas and oil wealth only if the government devises and implements appropriate plans towards that end by fully involving locals.

We fully subscribe to this position because it means well for the future of our country and nation. We also fully support the argument that this should not mean shutting out capable and well-meaning foreign investors. For sure, people and institutions of the kind are, as usual, warmly welcome as we believe it would be unrealistic to think our people can manage the energy industry to satisfaction without outside input.

Getting the industry to run smoothly calls immense investment in the form of human, capital and other resources, and our country is in position to offer all these. We may have the oil and gas reserves all right, but these need to be further confirmed before they are extracted and processed – at extremely high cost – until they are ready for use.

We are without the technology and funds we would need to turn our “raw wealth” into what we would use as fuel for motor vehicles, in factories, in homes, etc.

We must admit that it will be very difficult for many Tanzania citizens to venture into the sector. But we believe there are many of our people who can gainfully venture into the business, if adequately supported by the government as well as local and foreign financial institutions.

In that many of our people will find it hard to make in their individual capacities, they would be well advised to join hands and advance as joint forces. That would make it easier for them to get guarantees from the government as well as such other bodies as TPSF and chambers of commerce.

In a word, as a nation, we should not let the golden opportunity to invest in the gas and oil industry slip through our fingers. It can be done.

SOURCE: THE GUARDIAN