Zanzibar’s President, Dr. Hussein Mwinyi, witnesses the signing of the handover ceremony for oil and gas exploration data for Zanzibar’s blocks. Signing is Tanzania’s Minister of Energy, January Makamba (Left), and Zanzibar’s Minister of Blue Economy and Fisheries, Suleiman Masoud Makame. The event took place at the State House grounds in Unguja today, August 10, 2022. Photo: State House.
Zanzibar’s Economic Renaissance: Leveraging International Partnerships and Indigenous Expertise for Prosperity
By Adonis Byemelwa
In a bold move to reshape its economic destiny, Zanzibar has issued a compelling call to Norway, inviting them to seize the vast investment prospects within its thriving oil and gas sector. This strategic outreach signifies Zanzibar’s unwavering commitment to unlocking its untapped potential and propelling itself onto the global economic stage.
With unparalleled expertise in the oil and gas domain, Norway’s involvement holds the promise of catalyzing a monumental transformation in the Isles’ economic landscape. This strategic alliance between Zanzibar and Norway underscores a resolute determination to embrace sustainable development and usher in an era of unprecedented growth and prosperity.
President Hussein Mwinyi’s move signifies a pivotal step towards unlocking the Isles’ untapped potential. This invitation, made during a meeting with the Norwegian Ambassador to Tanzania, Tone Tinnes, underscores Zanzibar’s commitment to sustainable development through international partnerships.
President Mwinyi highlighted the transformative potential of Norwegian investment, stating, “Norway’s expertise in oil and gas is unparalleled, and their investment could be a game-changer for Zanzibar.”
Ambassador Tinnes reciprocated positively, expressing Norway’s strong interest and commitment to supporting Zanzibar in critical areas such as electricity, healthcare, and environmental conservation. “We see a bright future in this partnership, fostering sustainable development across Zanzibar,” Tinnes remarked.
Moreover, Zanzibar’s quest for economic transformation includes significant strides in its oil and gas exploration efforts. With critical data transferred from the Government of Tanzania, managed by the Zanzibar Petroleum Regulatory Authority (ZPRA), the Isles are poised for substantial growth in the regional oil and gas industry.
President Mwinyi emphasized the significance of this development, declaring, “Zanzibar will now begin to extract oil and gas. All signs point to abundant resources.” He outlined the necessary steps for advancement, noting, “We must advance from 2D seismic data to 3D, and finally, to drilling.”
Energy Minister January Makamba underscored the importance of these data in the exploration process, revealing that the handover included five blocks: blocks 9, 10, 11, 12, and the Zanzibar-Pemba block. The extensive data collection, dating back to the 1950s, provides a robust foundation for future exploration activities, ensuring efforts are grounded in thorough and accurate information.
President Mwinyi’s calls for international investment align with Zanzibar’s ambition to capitalize on its natural resources for economic prosperity. “If Zanzibar succeeds in finding and extracting oil and natural gas, it will significantly change our economy. The signs are promising,” he reiterated. Initial findings for the Zanzibar-Pemba block suggest it holds up to 3.8 trillion cubic feet of natural gas, promising a significant boost to Zanzibar’s economic landscape.
Preliminary assessments indicate that the Zanzibar-Pemba block may contain an impressive 3.8 trillion cubic feet of natural gas, offering a substantial uplift to Zanzibar’s economic prospects. Photo: Courtesy.
However, amidst these opportunities, Africa’s failure to fully exploit its natural resources using local expertise remains a poignant issue. The late Julius Nyerere’s proposal to harness indigenous knowledge for resource management echoes a sentiment often overlooked in the pursuit of foreign investment. As Zanzibar navigates its economic journey, striking a balance between international cooperation and local empowerment remains imperative for sustainable development.
In a separate development, Adani International Ports Holdings Pte Ltd (AIPH) has secured a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate Container Terminal 2 (CT2) at Dar es Salaam Port. This partnership signifies a significant boost to regional trade and economic integration. “We are confident that with our expertise, we will enhance trade volumes and economic cooperation between our ports and East Africa,” said APSEZ Managing Director Karan Adani.
CT2, with its annual cargo handling capacity of one million twenty-foot equivalent units (TEUs), plays a crucial role in regional trade. In 2023, it managed 0.82 million TEUs, representing 83% of Tanzania’s total container volumes. Adani will operate CT2 through Tanzania International Container Terminal Services Limited (TICTS), leveraging existing infrastructure and expertise to enhance operational efficiency.
“The signing of the concession for Container Terminal 2 at Dar es Salaam Port is in line with APSEZ’s ambition of becoming one of the largest port operators globally by 2030,” Adani added. The successful bid by Adani International Ports Holdings reflects the strategic importance of this venture in enhancing regional trade and economic integration. This concession agreement not only signifies a significant milestone for Adani’s expansion but also highlights the growing prominence of regional trade hubs in facilitating economic growth.
As Zanzibar and Tanzania continue to attract global investors, the region is poised for transformative growth, leveraging its natural resources and strategic location to foster economic resilience and prosperity.
These initiatives reflect a broader trend of increasing regional cooperation and investment, driving sustainable development and economic prosperity. The partnership between Zanzibar and Norway in exploring oil and gas opportunities exemplifies this trend, showcasing the potential for mutually beneficial collaborations to propel economic advancement.
However, amidst these promising developments, Africa’s failure to fully exploit its natural resources using local expertise remains a poignant issue. The late Julius Nyerere, former President of Tanzania, advocated for harnessing indigenous knowledge and expertise in resource management during the struggle for independence. Nyerere’s vision emphasized the importance of empowering local communities and utilizing homegrown talent to drive economic development.
In the 1960s, Nyerere’s proposed policies aimed to ensure that Tanganyika (now part of modern-day Tanzania) benefited fully from its natural resources.
He envisioned a future where Tanzanians played a central role in resource extraction and management, fostering self-reliance and economic independence. However, despite these aspirations, Africa continues to grapple with challenges such as resource mismanagement, corruption, and dependency on foreign expertise.
The legacy of Nyerere’s vision serves as a reminder of the importance of local empowerment and capacity building in harnessing Africa’s vast natural resources for sustainable development.
While international partnerships and investments offer valuable growth opportunities, they must be complemented by efforts to nurture local talent and expertise. By leveraging indigenous knowledge and skills, African nations can chart a path towards inclusive and sustainable economic prosperity.
In this context, initiatives such as Zanzibar’s collaboration with Norway and Adani’s port concession in Tanzania represent steps towards realizing Africa’s economic potential.
However, the journey towards harnessing Africa’s resources for the benefit of its people requires a holistic approach that integrates local expertise, promotes transparency, and fosters inclusive growth. As Africa continues its quest for economic resilience and prosperity, honoring the legacy of leaders like Julius Nyerere becomes essential in shaping a brighter future for the continent.
