WHY TANZANIA?
With a new government, new fiscal policies, and compliance and revenue drives, Tanzania is reconfiguring the ways of doing business.
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.
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.
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.
WHY TANZANIA?
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
read articleReview
Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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