14 July 2018

Tanzania: Why Liquefied Natural Gas Will Enhance Business in Tanzania

Photo: Daily News
(file photo).

TANZANIA is on the cusp of what could very well be its biggest ever economic boom.

With the government wholeheartedly devoted to attracting global investment to accelerate a period of extensive industrialisation, ensuring the success of undertakings such as the Tanzania Liquefied Natural Gas Project (LNG) is critical.

However, not only does the country stand to benefit business endeavours, but it is also likely to lead to long-term improvements in education.

The LNG is central to Tanzania's future, and is very likely to stimulate economic gains. Part of an LNG plant scenery Good for business Tanzania has set its sights on widespread industrialisation, and the LNG is core to achieving that aim.

Success, as they say, breeds success. Many investors around the globe will undoubtedly be keeping an eye on the project's progress, with any number of organisations ready to set up Tanzanian hubs once they've been assured of the country's proficiency in accommodating major business ventures.

The appetite is unquestionably there, the next crucial step is turning that eagerness into tangible, physical projects.

Education The government has committed to introducing a number of schemes to encourage children to remain in full-time education for as long as possible.

For years, many children left school without having first attained basic life skills or any abilities that could be directly applied to a technical profession.

However, with huge projects such as the LNG heading to Tanzanian shores, there will soon be growing demand for accomplished workers and highly educated professionals with the ability to plan, design and bring to life projects of a similar scale.

It is important to understand that the industry per se is not highly people intensive. Numbers of staff are typically counted in hundreds or in thousands, not in tens of thousands.

But there is what economists call a powerful "economic multiplier effect". One job in the gas industry generates a number of other jobs in affiliated industries and the economy in general.

There are numerous educational ventures currently in operation throughout Tanzania, with UNESCO recently praising the government for its efforts, but there is still more to be done. If projects such as the LNG reach their full potential, then education will most certainly thrive as a consequence.

The future of Tanzania's economy must be built on the foundations of a strong education system. The bigger picture While the immediate goal is to develop a successful LNG project, the long-term goals are far more expansive.

The LNG has been designed with the goal of creating a legacy; it will showcase Tanzania's capacity for progression and advancement, and will subsequently lead the way for other ambitious ventures.

The hope and expectation is that the LNG will encourage many other companies to invest. Regardless of industry or sector, Tanzania is a country that is ready to welcome determined organisations with impressive aspirations.

As more and more big businesses decide to head to Tanzania as a means of expanding their operations, the more it will benefit the economy, the people, and the country's long-term growth prospects.

Of course, this vision of the future will only be achieved on the back of the LNG's effective implementation, and as such its importance cannot be overstated.

The LNG has the power to act as a major economic catalyst, and it is vital that all parties work to ensure the project flourishes and thrives.

This is a huge opportunity for Tanzania, and should it be a success, the future will be incredibly bright. The writer of this article is an expert in energy matters

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