Tanzania’s 57 trillion cubic feet of natural gas reserves in Mtwara Region have ignited visions of an economic revolution. The proposed $42 billion LNG project is expected to add $8-19 billion annually to GDP until 2045, with a one-time growth surge of 12-18 percent during peak production. For a nation where 25 percent live below the poverty line, this seems transformative. Yet while these projections paint an alluring picture, they only tell part of the story.
The impact of LNG, though significant, has its limits. Over-reliance on natural resource extraction is a risk that has long haunted resource-rich nations. History is filled with examples where booms in oil, gas, or minerals have failed to translate into widespread, lasting development.
