The Government of Tanzania is making efforts to lure local companies, investors, and businesses into oil and gas industry, as they look to help in the exploration of the country’s energy resource. In a bid to convince the players in the sector, the Parliament has assured them of a conducive business climate to help their operations in the industry.
The East Africa country aims at achieving a semi-industrialized economy by the year 2025, driven by the energy sector. The country needs $14 billion to meet this state with oil and gas making billions of contributions. The manufacturing industry, mining, and infrastructure are among the contributors to the country’s economy with agriculture being the nation’s mainstay.
Prime Minister Kassim Majaliwa indicated that more explorations would lead to a better economic outlook. In his speech, read by the Minister of State in the Vice President’s Office (Union Affairs and Environment), Mr. January Makamba, he stated that a conducive working environment for both local and foreign investors would be productive for the exploration works.
The Government is establishing better infrastructure like roads to pave the way for potential investments in the petroleum industry. Infrastructure development was a top priority in Tanzania’s financial year budget to enhance trade and act as a hook to foreign investments. East African Community (EAC) countries set aside a large amount of money to go to the funding of infrastructure projects.
The Government is working on ensuring enough supply of water and electricity for the businesses to cut their operating costs. As more companies continue to connect themselves to the natural gas, the Government is putting implementations in place to improve the business environment.
Last year, President John Pombe Magufuli hinted at more oil discoveries in Tanzania. He has encouraged more inflows of foreign direct investments into Tanzania for job creation and strengthening of the economy.
Oil exploration in East Africa has made the oil and gas sector attractive to foreign businesses seeking to have a share of the pie.