The GDP growth figures in East Africa are attractive. It is a growing environment, and from a resource point of view it is under-exploited. Thus, we see a great deal of room to grow the resource base into an industrial powerhouse. Our major asset development project is the Bagamoyo Port. The project has taken more of a private investment participation route, while before we hoped to participate together with the government, now the government is confident that this project can be carried out by credible private investors. Therefore, we have put forward a comprehensive proposal and look forward to a positive response from the government in the coming weeks and months. We continue to look at other opportunities in the country, although our ticket size for investment tends to be quite large. At any one time in a deal flow, there are at least three to four opportunities that we are looking at. However, for one reason or another, we have not made any investments yet. In the meantime, Bagamoyo is a large project, and we do maintain focus on that and also expect the project to generate a number of other investment opportunities within the free zone. The Bagamoyo project will, therefore, be a perfect fit with Tanzania's objectives to spearhead industrialization.
Country Manager Tanzania, State General Reserve Fund (SGRF) Oman
Marc Den Hartog
Managing Director, Shell/BG Tanzania
Our main activity is our work on the Tanzania integrated LNG development, based on three deep water blocks offshore, where dry gas has been found. Two of the blocks are operated by Shell and one by Statoil, and we will have a joint LNG onshore processing plant in Lindi, in Southern Tanzania. From here, LNG will be exported, and processed gas will be supplied to the domestic market. Unlike the oil discoveries of Tanzania's neighbors, such as Uganda and Kenya, which are relatively easy and fast to develop and bring to market, Tanzania's natural gas find is much more complex, and will lead to a much longer-term project. We are great at developing large and highly complex projects just like Tanzania's integrated LNG project; therefore, we are well aware that this is a long game. Once this project gets off the ground, further developments will be unlocked, particularly in domestic gas and further exploration. Shell is a much-diversified company and also has a “new energies” arm, which is interested in Tanzania in terms of renewables, since we see considerable potential too on that front. In summary, we want to be here for the long term and succeed, which means there is work to do in the short term to make that happen.
Director, Knauf Tanzania
Tanzania has an advantageous location. Dar es Salaam is one of a few major ports on the east side of Africa; more than that, it is also an entry point to the hinterland, bordering many countries, and a good few landlocked ones. This allows us to plan strategically for expansion, and the introduction of the company and its products to other countries in the region. The existence in Tanzania of the raw material we needed was also an important factor. Finally, there is the relative safety and stability of this market to consider, especially when compared to other countries in the region. Our intention over the next couple of years is to increase exports to 30% of our overall portfolio. We see ourselves increasing capacity in the future, and improving the skills of our people. We will invest in people and technology, and educate the market to use our products in the right way. This is why we have our school here where we offer training courses in construction. To date, Knauf has invested a total of around USD17 million in Tanzania, not an insubstantial amount. We came to Tanzania to invest and remain as a Tanzanian company. We are preparing young Tanzanians to be the next generation of the company.