Tanzania is looking to change how it exploits its oil and gas resources, with the Government pushing for more domestic processing, including turning natural gas into fertiliser for local farmers and industries.
Finance Minister Khamis Mussa Omar said Tanzania and other African gas-producing countries should reduce their reliance on exporting raw resources and instead invest in industries that create more value, jobs and economic benefits at home.
He said recent disruptions to major global shipping routes, including the Strait of Hormuz, Suez Canal and Panama Canal, had exposed the risks of relying heavily on international markets and strengthened the case for countries to build stronger domestic production capacity.
“Now is the time for Tanzania and other African countries with these resources, such as Mozambique, to start thinking about how to use natural gas to produce fertiliser to meet domestic needs instead of depending heavily on the export market,” he said.
Mr Omar made the remarks in Doha while chairing a preparatory meeting for Tanzania's participation in the 11th Board of Governors meeting of the Asian Infrastructure Investment Bank (AIIB).
The proposed shift would give Tanzania greater scope to use its gas resources beyond energy production and exports, particularly in supporting agriculture and manufacturing.
Fertiliser production from natural gas could also help reduce Tanzania's exposure to fluctuations in international markets and disruptions in global supply chains, although the scale and commercial viability of such investments would depend on infrastructure, financing, energy costs and market demand.
Mr Omar also urged Tanzania to expand its expertise in the petrochemical industry by learning from Middle Eastern countries that have developed industries around their oil and gas resources.
He said Tanzania had benefited from Norway's Oil for Development programme, but needed to widen its sources of knowledge as it seeks to extract greater economic value from its energy resources.
The minister said lessons from countries that have moved beyond exporting hydrocarbons into petrochemicals could help Tanzania strengthen its industrial base.
The remarks come as Tanzania seeks to increase the economic contribution of its natural gas resources through downstream industries and value addition.
Tanzanian Ambassador to Qatar Habibu Awesi Mohamed said Qatar could become an important source of fertiliser for Tanzania as the two countries deepen economic cooperation.
He said the Government was exploring ways of securing fertiliser supplies from Qatar, whose economy is heavily linked to petroleum and gas.
The move could provide Tanzania with another source of fertiliser as the country seeks to ensure reliable supplies for farmers and reduce vulnerabilities associated with global supply disruptions.
Mr Mohamed said the embassy's seven priorities include strengthening diplomatic relations, promoting economic cooperation, attracting foreign direct investment, tourism, employment, diaspora affairs and higher education.
The ambassador said about 2,500 Tanzanians currently live and work in Qatar, including around 720 employed as drivers of large buses operated by a state-owned company.
He said the growing presence of Tanzanian workers was another area of economic cooperation between the two countries.
Mr Omar commended the Tanzanian embassy in Qatar for marking 10 years of diplomatic and economic relations with the country, saying the milestone could help strengthen cooperation in trade, energy and other sectors.
The Tanzania-Qatar relationship has expanded since Tanzania established its embassy in Doha in 2017, with both sides seeking to increase cooperation beyond traditional diplomatic ties into investment, employment, energy and trade.