Tanzania told to put youth at centre of oil and gas investment

By The Respondents Reporter

The government has been challenged to ensure Tanzanian youth and local companies secure a meaningful share of jobs, contracts and investment opportunities expected from the country's expanding oil and gas exploration activities.

Vice President Deogratius John Ndejembi has directed the Ministry of Energy, through the Petroleum Upstream Regulatory Authority (PURA), to prepare a strategic plan that will increase the participation of Tanzanians in the sector, warning against a situation in which local people remain spectators while major investments take place.

He said young people and women should be prioritised in employment, training, technology transfer and procurement, while domestic companies should be supported to participate across the oil and gas value chain.

Mr Ndejembi issued the directive on Wednesday, October 28, 2026, during the signing of four oil and natural gas exploration licences covering Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara blocks at the Julius Nyerere International Convention Centre in Dar es Salaam.

The directive comes as Tanzania seeks to strengthen its capacity to explore and develop petroleum resources, with the government expecting the sector to generate revenue, create employment and support industrial growth.

The Vice President said the benefits of the new investments should extend beyond government revenue to include skills development, technology acquisition and business opportunities for Tanzanian companies.

He called for stronger monitoring of the licences, financial discipline and accountability to ensure the country receives appropriate returns through taxes, royalties and profit-sharing arrangements.

Mr Ndejembi also directed the Tanzania Petroleum Development Corporation (TPDC) to work with investors possessing adequate financial resources, technical expertise and technology to improve the efficiency of exploration and development activities.

He said the investments were expected to contribute to the government's ambition of building a $1 trillion economy by 2050, as outlined in the National Development Vision 2050.

Natural gas is also expected to support the country's projected electricity generation capacity requirement of 70,000 megawatts by 2050, while creating opportunities for industrial development and employment.

However, he emphasised that achieving these ambitions would require effective supervision and responsible management of the country's petroleum resources.

"The government will continue creating a favourable investment environment based on transparency, predictable legal frameworks, fair competition and protection of national interests," he said.

Mr Ndejembi said the Sixth Phase Government also planned to establish a centre of excellence to develop specialised skills needed in the oil and gas industry.

The initiative is intended to build a skilled local workforce capable of participating in exploration, production and related services, reducing the skills gap that could limit Tanzanians' access to opportunities in the sector.

Energy Minister Juma Zuberi Homera said the allocation of exploration licences to TPDC was an important milestone in strengthening the country's ability to search for and develop its petroleum resources.

He thanked President Samia Suluhu Hassan for supporting investment in strategic energy projects, saying the government wanted natural gas to serve different economic needs, including household cooking, transport, electricity generation and industrial production.

TPDC Managing Director Mussa Makame said the four blocks covered by the agreements were at different stages of implementation, including seismic data collection to support exploration activities.

He said the corporation would promote community participation, give local companies opportunities based on their capacity and expertise, and implement corporate social responsibility projects to ensure surrounding communities benefit from the investments.

For Tanzania, the success of the new exploration licences will ultimately depend not only on whether commercially viable oil and gas deposits are discovered, but also on how effectively the resulting opportunities translate into jobs, business contracts, skills and revenue for the country.

Post a Comment

Previous Post Next Post

Advertisement