The minister for Energy and Minerals, Prof Sospeter Muhongo, stresses a point during one of the 10th Parliament session. The minister has invited local investors to invest in the sector. PHOTO | FILE
What you need to know:
The Energy and Minerals minister, Prof Sospeter Muhongo, initially made the call during his recent tour of power plants projects across the country before Tanesco officially announced it about a fortnight ago.
Mwanza. The government has through the Energy and Minerals Ministry and Tanzania Electricity Supply Company (Tanesco) invited local investors to invest in the power sector.
The Energy and Minerals minister, Prof Sospeter Muhongo, initially made the call during his recent tour of power plants projects across the country before Tanesco officially announced it about a fortnight ago.
Among areas of investment, which are up for grab, include natural gas, coal, and small and large-scale projects of hydropower and renewable energy.
Others, according to the Tanesco’s advert, are solar, wind, geothermal, waves (tides and waves), biomass, and biogas power projects.
The announcement comes amid a heated debate on Prof Muhongo’s reappointment in the Minerals and Energy docket, with some wondering the minister’s sudden passion towards local investors.
Prof Muhongo goes on record as disparaging local investors, undermining their capacity to invest in the Energy sector, specifically in the gas and oil industry.
In one of his statements during the 10th Parliament, Prof Muhongo was quoted as saying local investors could not afford to invest in the industry, for it called for huge and long-term investment with a big capital.
“All what local investors can do is to engage in the production and distribution of mineral water and juice,” Prof Muhongo, one of the world’s few finest geologists, then said.
Local investors though strongly protested against Prof Muhongo’s statement, the fact remains valid that investing in the oil and gas industry requires huge capital.
This is reflected in poor response among local investors to the advert, as few, if any, has so far applied for the projects. This is despite the fact that it was the right time for them to prove the minister wrong.
It is an opportune time for two main reasons: First, the nation is facing power rationing as a result of dilapidated sources of power generation in place.
Second, the advert provides local investor the opportunity to effectively participate in building the nation using locally available resources, particularly the natural gas deposits discovered in the southern regions of Lindi and Mtwara, among other areas.
While the reason which drove the government to invite local investors in the power projects is best known to executives, it goes without saying that sustainable development of any country depends on effective participation of its citizens.
The fifth phase government actually deserves accolades for implementing one of President John Magufui’s campaign pledges of involving local investors in running national investments including natural gas and oil projects.
However, this does not belittle noble role foreign investors play in transferring the much-needed knowledge and capital.
Let local investors, individually or though their productive groups or societies grab the investment opportunities availed to them in the energy sector.
In so doing, they will assure Tanzania of reliable power required for pushing the pipeline national development dream of becoming a middle-economy come 2025.
Local investments will not only stimulate the national income, but also those of individuals who will be directly and indirectly involved in them.
The government is duty bound not only to invite local investors to invest in the Energy sector, but also to empower them and set conducive environment for them to play their part effectively.
The government should ensure local investors get access to soft loans from national and international financial institutions as is the case with most of the foreign investors.
If the need arises, the government should accept to serve as a grantor for local businessmen and women in need of loans from national or international financial institutions just other governments elsewhere are doing for their citizens.
But local investors must come up with business proposals showcasing potentials for energy projects they are interested in to generate sufficient power in a sustainable manner.
And this is the bottom line of President Magufuli’s philosophy of champing at the bit. As Winston Churchill once said: “Deeds, not Words, for if you give local investors the tools, they will certainly finish the job”.
