Angela Kairuki, the Minister of State in the Prime Minister’s Office (Investment), said yesterday that the new law which will be tabled in the legislature next month will among other things scrap red tape in business registration and abolish several nuisance taxes.
Minister Kairuki was speaking in Dar es Salaam during the Third Tanzania Oil and Gas Congress saying the government intends to see locals participate fully in the sector as it grows.
“The capacity to make the lucrative business a blessing rather than a curse lies in its management. Therefore the local content policy was created to ensure Tanzanians are fully engaged,” she stated.
The law upon amendment will be the most investor friendly in the East African region, the minister declared.
Ireen Bateebe, the Commissioner for Energy in the Ugandan Ministry of Energy said the growth of the market in the region is a sign for the need to join forces in ensuring that the sector contributes fully to the economies of countries in the region.
In his remarks, Energy Minister Dr Medard Kalemani said there has been some progress in the gas sector, as out of two trillion cubic feet of natural gas already proven on land surface only 0.5percent has been used.
There has been an increase in the contribution of the subsector to the Gross Domestic Product (GDP) from 0.9percent in 2015 to 2.0percent, he said.
Participants at the congress are expected to discuss various issues in the sector including the stalled construction of a Liquefied Natural Gas (LNG) plant in Lindi Region. They will also dwell on the pricing as well as mode of importation of Liquefied Petroleum Gas (LPG).
Strategies put in place to boost the government’s industrialization agenda powered by oil and gas shall be outlined, as well as investment opportunities and future of existing projects.
Tanzania’s natural gas reserves currently stand at about 57.25trillion cubic feet following new deep sea discoveries off the country’s southern coast. Plans are also being finalized to set up a liquefied natural gas processing plant in Lindi.
The congress which is held annually is taken as an official platform for promoting government and industry collaboration.