Research and consulting company Africa House and industry body the South African Oil & Gas Alliance (SAOGA) are preparing to lead a delegation to Tanzania next month to help South African firms establish local partnerships, better understand local content development and familiarise themselves with the significant opportunities available.
The group visit, from March 26 to 31, will follow on similar visits undertaken to Uganda and Namibia last year, with the visit planned with the relevant authorities and leading firms involved in major mining, oil and gas projects across Tanzania.
After the disruption caused by a number of economic shocks, including Covid-19, the war in Ukraine, lack of energy, weather-related impacts, inflation and borrowing costs, Africa’s 2023 economic recovery is expected to be led by East Africa, with the region’s economic growth rate one of the highest across the continent.
Tanzania, with renewed efforts and revitalised policies to unlock the potential of its economy, offers major opportunities, which Africa House and SAOGA aim to unveil while helping South African firms get involved, particularly in early-stage projects.
With policy constraints eased under a new regime and the planned opening up of the sector, the country has emerged as a unique growth story, amid global economic turmoil.
“The growth story in Tanzania is intertwined with global events, with the disruptions in logistics and supply chains, owing to the pandemic, disruptions with the supply of energy, owing to the war in Ukraine, and the pursuit of net zero,” says Africa House market insight and development director Roelof van Tonder, noting that the alignment of these suggests Tanzania will experience sustained high levels of economic activity in the mining, oil and gas sectors, besides others.
Africa House director Duncan Bonnett points out that Tanzania’s gross domestic product last year, as estimated by the International Monetary Fund, reached about $75-billion, with expectations that this will surpass $100-billion by 2025, becoming one of the fastest-growing countries – at above 6% – across sub-Saharan Africa in the near term.
“That is quite significant because there are only three or four other countries in sub- Saharan Africa that are $100-billion economies. So it is a country that is on the move at a number of levels.”
In addition, Tanzania is working hard to develop its own identity, with President Samia Suluhu Hassan, after assuming the top position in March 2021, pursuing re-engagement with key investors and stakeholders across industries, including the mining sector, aimed at pushing the country forward.
SAOGA business development and marketing executive Alain Kerr is also optimistic about the opportunities available to its members in the oil and gas sector.
“Both Africa House and SAOGA have potentially members or subscribers that are looking for some sort of commercial traction when it comes to oil and gas or mining projects in South Africa, as well as Africa.”