Research and consulting company Africa House and industry body South African Oil & Gas Alliance (SAOGA) are preparing to lead a delegation to Tanzania in March to help South African firms establish local partnerships, better understand local content development and showcase 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 visits planned with the relevant authorities and leading firms involved in major mining, oil and gas projects across Tanzania.

After the disruption of 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 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 the 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 presidency 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 of 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.”

The intention of the upcoming visit is to take members, in a supportive manner, to a destination where they are able to connect with industry stakeholders, have meaningful engagements, build relationships and potentially secure contracts or enter into joint ventures, while assisting the region’s growth, establishing skills transfer and developing local content, a critical focus of Tanzania.

The trio, discussing with Mining Weekly the many green- and brownfield projects that are in the process of being revitalised in the country, outlined the government’s continued investment into several infrastructure projects in the south of the country, including a port and a power station, and highlighted the $4-billion, nearly 1 500-km-long East Africa Crude Oil Pipeline from Uganda which is expected to reach final investment decision (FID) in 2023.

Mining Weekly previously reported that the pipeline will comprise upstream operations, with the Tilenga and Kingfisher oil extraction sites being developed by fuels company Total Energies and China National Offshore Oil Corporation.

Tilenga and Kingfisher are expected to produce about 216 000 bbl/d of oil.

The pipeline will connect a new oil export terminal, to be built north of the Port of Tanga, in Tanzania, to the Lake Albert Oil Development, in Hoima, Uganda.

Alongside this major project, the negative impact of war in Ukraine on global energy security has revitalised negotiations around the $30-billion Tanzania Liquified Natural Gas project, with FID expected in 2025.