Investment politics in Tanzania: The LNG project as a case study
The project is worth Sh70 trillion
What you need to know:
- As we head into this new season, we need to detach ourselves from the misconception that investors are “only foreigners”. This false notion and narrative is not only misleading, but is also the reason quite a few Tanzanians, even those who ought to be in the know, celebrate the woes of investors in the mistaken belief that investors are exploiters of what belongs to Tanzanians.
The signing of an agreement between the government of the United Republic of Tanzania and foreign investors on the processing and export of liquefied natural gas (LNG) should give us reason to think about our approach to investment.
Whenever issues of our lack of predictability for investors are raised, the government and its sympathisers and apologists – also called chawa in Kiswahili –come out with all barrels blazing.
There are basic points to be considered now that we have signed an agreement for the establishment of a massive LNG complex in Lindi Region.
As we head into this new season, we need to detach ourselves from the misconception that investors are “only foreigners”. This false notion and narrative is not only misleading, but is also the reason quite a few Tanzanians, even those who ought to be in the know, celebrate the woes of investors in the mistaken belief that investors are exploiters of what belongs to Tanzanians.
Politicians are the stewards of what happens to a country, and, in this case, the direction that the investment narrative takes. The government under President Samia Suluhu Hassan has taken a completely different approach to investment compared to the government of her predecessor, the late John Pombe Magufuli.
If there is something we ought to learn, then it is the fact that political rhetoric has absolutely no place on matters investment. We, for instance, can improve the resource base of the nation by creating an assets authority.
It would have enough resources that government can borrow from to use for purposes of investment. I will never tire to state that you need five or so resources for investment to happen.
We have the land and the gas and other natural resources, and that is very significant. What we don’t have are the financial and technical resources required to capitalise on these riches. That is where the investor comes in, and puts in those two together with what we have.
That the government has finally come to its senses can be seen in the reopening of the tobacco plant in Morogoro, whose closure caused untold suffering for thousands, not only in job losses, but also loss of income by businesses.
In congratulating the government for doing its job, we must also ask the same government what led to the costly and unnecessary closure of the factory. It seems we all know the answers – egoistic tendencies – but don’t want to say it.
The differentiator is always that we have not been known to make decisions based on solid information despite the government’s ability to seek and find the said information.
Our good friend Ali Masoud, popularly known as Masoud Kipanya, has dared and come up with an electric car.
Kipanya’s feat is extraordinary, and calls for extraordinary action by the relevant ministry and government in general. We can discuss with international organisations to get seed capital, and then obtain some equity in the venture. Sadly, the government won’t work like that.
Kipanya’s Kay Pee Motors fits hand-in-glove with the Agenda 2030 goals that need to be wholesomely supported. A venture is created, creates jobs and can be replicated. Kipanya is an investor – a local investor – and one who needs all support to make a real difference. We are not holding our breath to see what difference government could make.
Also Read: Costech meets Kipanya over his electric car
The Tanzania we wish to see is one in which rhetoric takes the backseat as data becomes the key provider for information on which decisions are made. It would be a Tanzania where even the presidency – with all the powers at the disposal of that high office – should not denigrate any venture simply because it makes the Head of State’s opponents or detractors look bad.
Can we really get there? It is doubtful that we can, what with so many clueless individuals lining up to get political power, and who also imagine that robbing the rich to reward the poor is good policy.
Disclaimer: The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Citizen.
