CEO Roundtable Tanzania

Ethical Leadership for Growth and Prosperity

CEO Roundtable Statement Gas Block Auction

The CEO Roundtable (CEOrt) is gravely concerned and dismayed by the government move to proceed with the gas block auction without having a clear gas policy in place. During the 2nd Tanzanian Oil and Gas Conference and Exhibition held in Dar es Salaam on 23rd 24th October 2013, the Minister for Energy and Minerals, Prof. Sospeter Muhongo delivered a statement affirming that the local private sector would not play a role in the gas block auction but instead would be represented through the Tanzania Petroleum Development Corporation (TPDC). The Minister further advised the gas block auctions would proceed as originally planned. Surprisingly, these announcements were made despite requests from the Tanzanian Private Sector Foundation (TPSF) and other private sector organisations to postpone the natural gas block auction until a suitable gas policy was in place in order to ensure acceptable local inclusion. As a country, we cannot let history repeat itself. We need only look back less than 20 years ago when the mining policy was put in place. Nearly 20 years later, despite numerous booms and impressive growth in the mining sector, the majority of Tanzanians have not advanced significantly with Tanzanians continuing to play a marginal role at best and a third of Tanzanians living below the poverty line. It is clear the mining policy failed miserably to safeguard the interests of the Tanzanian people. Therefore, we must look back and understand what mistakes were made and how we can do it better this time round. We must also be willing to learn from the numerous countries around the world that have successfully implemented policies which guarantee control of the countrys natural wealth remains with the nationals. This is critical to ensure that Tanzania builds a stable economy that will benefit all Tanzanians. The CEOrt firmly believes moving forward with the gas block auction without having a gas policy which clearly defines how Tanzanian nationals can participate, collaborate and partner is a reckless move by the government that will have a rippling effect on the Tanzanian economy and the lives of Tanzanian citizens for generations to come.

Directors: Ali A. Mufuruki (Chair), Yogesh Manek, Leonard C. Mususa, Nehemiah K. Mchechu, Nicola Colangelo, Amb. Ami R. Mpungwe, Dr. Alex Nguluma

Secretariat: Tell-Em Public Relations East Africa | Fleishman Hillard - Pan African PR Network Ibacon House, Ikungi Street Kinondoni. P.O. Box 106185, Msasani - Dar es Salaam. Office Telephone: +255 657 586 211, (E) jackie.karanja@tell-em-pr.com or secretariat@tell-empr.com

The CEOrt urges the government to heed the statements made by several private sector organisations and work with the local private sector to ensure a natural gas policy is in place which clearly defines the role of Tanzanians. This is imperative in order to ensure Tanzanians reap the rewards from the oil and gas sectors for generations to come.

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