M a r k e t N e w s

Tanzania survey shows more gas awareness needed

Posted on : Wednesday , 9th September 2015

 DAR ES SALAAM, Tanzania – Twaweza, a local Tanzania organization last week said many Tanzanians are misguided on the benefits they expect to reap from the oil and gas sector as such more education and sensitization is needed.  

 
Aidan Eyakuze, Twaweza Executive Director when presenting the main results of a survey saidTanzanians citizens are significantly misinformed about the potential of the country’s gas deposits whereby almost two out of 10 (17%) think that they will be employed in the sector. 
 
According to Eyakuze using current population data this suggests that four million jobs are expected by ordinary citizens and as a comparison, the gas sector in Norway only employs 240,000 people. 
 
Adding that people also expect that in ten years total gas revenue will amount to Tsh.7.5 million ($4,000) per person; the most optimistic projections put this figure at Tsh.2.5 million ($1,500), or just a third of popular expectations. 
 
He said in general citizens do not have access to full information about Tanzania’s gas sector: more than half (53%) think that gas from the new offshore discoveries is already flowing (projections indicate that 2025 is the earliest this can happen), and six out of ten believe that both the Government and foreign companies are already earning revenues from the gas (this will happen when gas is ready for end use).
 
“Overall, six out of 10 citizens (59%) think that the natural gas deposits will improve their lives and a similar number (58%) expect that the Government will invest gas revenue into public services. In 2013, eight out of 10 citizens expected the gas finds would lead to improved living conditions for themselves and their children, so this shows a reduction in optimism about the benefits of gas,” he said. Eyakuze added that these findings were released by Twaweza in a research brief titled “Great Expectations Citizens’ Views on the Gas Sector. The brief is based on data from Sauti za Wananchi, Africa’s first nationally representative high-frequency mobile phone survey. 
 
The findings are based on data collected from two rounds of calls whereby a total of 1,562 respondents across Mainland Tanzania (Zanzibar is not covered in these results) were reached between October and December 2013 and, more recently, 1,316 respondents were reached in April and May 2015.
 
According to the survey, in addition to new jobs and more money, more than half of the people (51%) expect the gas deposits to bring them a stable electricity supply (currently just over 10% of the population is connected to the national grid) slightly less than half (46%) expect more affordable cooking gas. 
 
“But citizens are also skeptical about how gas income might be shared hence more than half think that people in Government (33%) or the wealthy (22%) will benefit most from the gas revenues. In 2013 more people (31%) thought all citizens would benefit equally than in 2015 (22%),” he said.
 
The government is developing two policies to regulate the gas sector, but 3 out of 4 people are not aware of these, however, citizens do have views on some key aspects of gas revenue management. 
 
According to Eyakuze concern should be about the real possibility that elites will enjoy the lion’s share of the gas revenue benefits, while ordinary citizens’ lives don’t improve and that in the contrary, if we wait until the gas and the money really start flowing, it will be too late.
 
Neema Rugangira an official of the Tanzania’s Ministry Energy and Minerals acknowledged that the government was fully committed to cooperating with stakeholders in the gas sector to make ensure that the majority of Tanzanians benefitted from it.
 
Adding that the government has developed a local content policy, which gives guidelines on the extraction of gas in the country and that the majority of the citizens believe that extraction of the gas would lead to Tanzania’s immediate economic transformation.

Source : EAST AFRICA BUSINESS WEEK
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