The African Development Bank (AfDB) has approved a USD 29.8 Million loan to Tanzania to help the country mobilize domestic resources and unlock the potential of its natural gas resources through leveraging domestic markets and local content initiatives.
The approval will help Tanzania capture the best value from their natural gas resources through a sound regulatory framework to manage natural gas reserves and to attract investment, as well as support for government negotiations teams to ensure the country gets the best deals and local content policies formulation to create jobs in the gas sector.
“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,” AfDB’s Country Manager for Tanzania (OIC), Chidozie Emenuga, said.
While the large gas offshore discoveries can be a game changer for the country, doubling GDP, developing access to energy at national and regional levels and facilitating industrial development, it also represents significant challenges.
Local content is a key priority for the country to ensure that local private sector can benefit from these large foreign investments estimated at about USD 40b to develop the LNG production and export facilities.
Gas Domestication is another key priority of the Government when developing the gas sector. Accessing gas resources at the regional level can springboard access to energy, develop regional infrastructures and private sector development.