Petrostate Blog for the period 02.04.2018 to 15.04.2018


Local content in Tanzania: Are local suppliers motivated to improve?

Firms located in developing countries generally encounter difficulties with meeting the challenging standards posed by the oil and gas supply chain. It is against this background that the present study aims to reveal to what extent Tanzanian indigenous firms are ‘motivated’ to compete and close the performance gaps vis-à-vis corporate expectations in the petroleum industry.

Resource curse 
“Why natural resource finds are more than just a curse: the case of Mozambique” —
Natural resources are often thought of as a curse in developing countries, slowing economic growth rather than driving it. But new results from our research show that discoveries themselves – before extraction happens – have their own economic consequences.

The research  shows that countries where natural resources are discovered are inundated with injections of capital, much like boomtowns during a gold rush. Giant and unexpected oil and gas discoveries act as news shocks, driving the business cycle by triggering foreign direct investment (FDI) bonanzas. Across countries, we find that FDI inflows driven by new projects in new industries increased by 58% in the two years following a giant discovery.

Impacts of the oil boom on the lives of people

The study considers the impacts of the development of oil resources (exploration and extraction) on the lives and livelihoods of people living in the Albertine Graben region of Uganda. These impacts are both positive and negative. It is argued that there is a need for collaboration among stakeholders in order to address the deficiencies in the development of oil resources and the region, and to create the conditions needed to avoid the resource curse and associated Dutch disease and Nigerian disease.

Pinning Down Illicit Financial Flows: Why Definitions Matter

The Sustainable Development Goals (SDGs) include a target to “significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organised crime” (Target 16.4). However, there is no globally agreed upon definition for “illicit financial flows” (IFFs). The new CGD paper looks at why there is so much disagreement and confusion over this term.


Executive Course on Oil, Gas and Mining Governance
Organised by NRGI, BLAVATNIK school of government and University of Oxford. This intensive five-day course provides the training and insight required for policy leaders in the public and private sector to work towards better management and governance of oil, gas or mineral resources for a better future. The course builds a better understanding of the interests of the public and private sectors and facilitates dialogue and mutual appreciation of respective positions between these different groups. The course looks at both technical policy aspects of managing resource and the complex interplay between governments, companies and citizens.

Registration is now open and will close on 1 June 2018
 Dates:10-14 September 2018

In The News

New Power Plant Launched by President

President John Magufuli launched the Kinyerezi II power plant to boost power supply inTanzania.

TPDC: Natural gas in Tanzania boosts economic growth

Tanzania’s domestically produced natural gas has led the country in saving funds worth US$4bn between 2015 and 2017. Aristides Katto, a researcher from Tanzania Petroleum Development Corporation (TPDC), stressed that the use of domestically-produced natural gas has also increased Tanzania’s energy sources, thus accelerating the country’s economic activities.

TPDC is also looking for a Liquefied Natural Gas (LNG) Transaction Advisor for the Government Negotiation Team (GNT) and a consultant to Develop the Local Content Implementation Strategy.

Kenya Pipeline Company to develop US$125mn LPG facilities in Nairobi and Mombasa
Kenya Pipeline Company (KPC) has revealed plans to build US$125mn facilities tohandle and store liquefied-petroleum-gas (LPG), aiming to increase the use of cooking-gas in the East African country.

Entrepreneurs in Africa need a strong state to thrive
Breaking down what’s wrong with Dangote’s perspective on how government’s job is not to drive the process of Entrepreneurship during an interview to Bloomberg. Looks at this perspective and how it relates to other misconceptions about the history and political economy of industrial policy and state-market relations in the context of economic catch-up. Also in the news, Dangote is set to start using natural gas

Up coming events

Impact of Tanzania’s double Tax treatments/treaties on FDI and Tax revenue collection.

The meeting is set to discuss a report by Policy forum and Tax justice network Africa, from a study that key researches the group has undertaken in ensuring the government enjoys its fair share of revenue from investment operation in the country
Location:  Dar es Salaam  
Dates: April 2018 (By Invite Only)

Shell Stakeholder round table luncheon
An information sharing session by Shell to offer latest perspective on current Oil and Gas operations around Tanzania.
Location: Dar es Salaam 
DateApril 2018 (By Invite Only)

Past Events

The 23rd REPOA’s Annual Research Workshop

REPOA saw a successful completion of its 2018 Research Workshop with the theme “Towards an industrializing society by 2025: Why National Competitiveness Matters”. The workshop was graced by RNE Ambassador, Minister for Legal and Constitutional Affairs and SACU’s Executive Secretary as the keynote speaker, Ms. Paulina Elago. The closing remarks were delivered by the Ambassador to the Embassy of Ireland in Tanzania.

Relive the sessions on Facebook see ARW2018 Playlist

A thematic panel on Business Environment and Investment Climate for Competitiveness , moderated by Sufian Bukurura while Joseph Sheffu (MP, EY), Amb. Mwanaidi Sinare Maajar (Partner, ENSafrica Tanzania) and John Page (IGC, Brookings), were panelists and Ahmed Ndyeshobola (EU-TradeCom II) and David Laborde (IFPRI) were discussants – 5th April 2018.

The Tanzania Petrostate Programme Blog is produced by the joint programme of three institutions: REPOA and theNBS in Tanzania, and CMI in Norway with support from the Royal Norwegian Embassy in Dar es Salaam. The purpose of the blog is to draw attention to publications and reports on the gas and petroleum sectors, which may be of interest to researchers, politicians and the general public. The blog does not state opinions but merely links to relevant postings on the world wide web with a brief description and/or quotes of the content and opinions stated by authors.

The Petrostate Programme runs a website at where the participating institutions and researchers are presented and the aims of the programme, research results and publications are posted. The programme is also gradually building up a Resource Hub  ( researchers and other users can download important statistics and information pertaining to the petro sector and its effect on the Tanzanian economy and society. The database covers 20 categories including production and sales of petroleum products, environmental issues, poverty, public budgets etc.

The programme and its cooperating institutions are extremely grateful for constructive comments, advice on the blog and website (link below) as well as information on important web posting that deals with the petro sector and its role in Tanzania.

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