Exploring the Nexus Between Oil and Gas Investments and Development in Tanzania

The report examines how Tanzania's extractive industries, particularly natural gas and gold, have created economic enclaves and contributed to a 'sub-national resource curse' in regions like Mtwara and Lindi. It analyzes the country's rising debt-to-GDP ratio, which grew from 28% to 40% in four years, and the role of resource-backed loans from China for infrastructure like the Standard Gauge Railway. While Tanzania possesses significant renewable energy potential in solar, wind, and hydropower, the report notes a continued reliance on fossil fuels and a lack of gender-sensitive policies in the energy sector. It concludes with recommendations to diversify the economy, strengthen governance, and develop a domestic downstream sector for critical minerals.

• Tanzania exhibits signs of a 'sub-national resource curse' where extractive wealth is concentrated, leading to local economic deterioration. In the village of Likong’o, land re-settlement compensation of $2-$3 million caused locals to abandon cashew crop cultivation in favor of rent-seeking, while youth in Mtwara and Lindi have left the agro-economy for sectors supporting the oil and gas industry.
• The country's national debt has increased significantly, with the central government debt stock reaching TZS 91,708.33 billion (USD 35,688.90 million) as of March 2024. The debt-to-GDP ratio surged from 28% to 40% over four years, partly driven by large-scale infrastructure projects like the $10 billion Standard Gauge Railway (SGR) funded by the Exim Bank of China.

APA

African Forum and Network on Debt and Development (n.d.). Exploring the Nexus Between Oil and Gas Investments and Development in Tanzania. https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Tanzania_0.pdf

Chicago

African Forum and Network on Debt and Development. Exploring the Nexus Between Oil and Gas Investments and Development in Tanzania. n.d. https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Tanzania_0.pdf.

Wikipedia

{{cite report |author=African Forum and Network on Debt and Development |title=Exploring the Nexus Between Oil and Gas Investments and Development in Tanzania |url=https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Tanzania_0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanforumandnetworkondebtanddevelopmentndexploring, author = {{African Forum and Network on Debt and Development}}, title = {{Exploring the Nexus Between Oil and Gas Investments and Development in Tanzania}}, institution = {African Forum and Network on Debt and Development}, url = {https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Tanzania_0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }