Economists urge swift action as CCM pledges commitment to LNG project in 2025 manifesto

The document pledges that any agreements will safeguard broad national interests and be accompanied by legislation to guarantee local content.

Also read: Investors see 'imminent' conclusion of Tanzania LNG talks

Economists, however, say that political will must now translate into immediate and practical steps.

“We are already racing against time.

“If Tanzania doesn’t fast-track LNG development, we risk missing out on the economic value of these resources as the world moves aggressively towards renewables,” said an economist from the University of Dodoma, Dr Mwinuka Lutengano.

This warning echoes recent concerns raised by energy experts during a major petroleum conference in Dar es Salaam.

Tanzania has discovered over 57.5 trillion cubic feet of natural gas, yet substantial development has only gathered momentum in the past three years.

The government hopes to conclude agreements by the end of 2025, with full-scale production projected for 2030.

Dr Lutengano said the time for strategic delays is over.

“Global trends show a declining appetite for fossil fuel projects. If we don’t act quickly, we might find ourselves sitting on stranded assets,” he said.

Another economist, Dr Isac Safari from Saint Augustine University of Tanzania shared that rapid implementation would help bridge Tanzania’s fiscal gap and reduce dependency on fuel imports.

“A completed LNG project could significantly boost foreign reserves, create skilled jobs, and stimulate domestic industries. But this will only happen if implementation is swift and transparent,” he said.

Also read: Tanzania to expand natural gas exports to neighboring countries

The manifesto also highlights the need to add value to natural gas before exporting it—an approach aligned with calls by the Tanzania Petroleum Development Corporation (TPDC) to reduce the foreign exchange burden caused by petroleum product imports.

At the recent international conference co-hosted by the Society of Petroleum Engineers (SPE) and the Petroleum Upstream Regulatory Authority (Pura), the Director General of Pura, Mr Charles Sangweni, called on capable investors to seize opportunities in Tanzania’s energy sector.

“This is the right time to invest. The world is changing fast. We need to utilise our petroleum resources before they lose economic value,” said Mr Sangweni.

He revealed that the government is finalizing internal procedures ahead of announcing 26 new exploration blocks.

Mr Sangweni noted that the government is also addressing key investor concerns such as domestic gas allocation and local content obligations, while reinforcing that any agreements must bring lasting benefits to Tanzanians.

For his part, the Executive Director of the Research on Poverty Alleviation (Repoa), Dr Donald Mmari, said while the commitment shown in the manifesto is promising, implementation will be the true test.

“We must avoid a repeat of past resource projects where delays and poor negotiations shortchanged the country. Tanzania needs to invest in regulatory capacity to ensure that all contracts meet international standards and local expectations,” he said.

He added that speeding up the LNG project does not mean compromising on quality.

“It’s about doing things urgently but wisely—vetting investors, ensuring transparency, and involving local communities,” he explained.

Renewable energy expert Mr Prosper Magali cautioned that even as Tanzania pushes forward with LNG, it must not ignore the broader energy transition.

“We need to develop LNG now because it is part of our natural endowment. But at the same time, we must prepare for the future by scaling up renewables,” he said.

Mr Magali stressed the importance of a balanced energy mix.

“Coal and natural gas are still relatively underutilised in Tanzania. With the right investments, they can serve as transitional energy sources while we build up capacity in solar, wind and hydropower.”

Meanwhile, the Society of Petroleum Engineers (SPE) Tanzania Chairperson, Mr Alex Stephano, expressed optimism about the role of regional cooperation and technology transfer in driving the sector forward.

“This is an opportune moment for African countries to harness petroleum resources responsibly, with a focus on innovation and shared growth,” he said.

The CCM manifesto’s mention of skills development and participation of Tanzanians at all levels of the LNG project has been particularly welcomed by experts.

“That’s a key component. We can’t afford to have another project where Tanzanians are bystanders. This should be a model for inclusive growth,” said Dr Lutengano.

With global institutions like the EU and UN pushing for net-zero emissions targets by 2040 and 2050 respectively, the window of opportunity for fossil fuel-driven economic transformation is narrowing.

Economists argue that Tanzania must act with urgency, coordination, and clarity if it hopes to transform its gas potential into tangible prosperity.