demand, the government has now prioritized sorting out the energy sector.”
GROW TH CHARTS
While the global economy experienced ;ts of turmoil over the past
decade, Tanzania’s economy has
enjoyed steady growth. From 2002 to
2013, its GDP growth rate averaged
7 percent. By contrast, South Africa,
Saharan Africa, grew by just 3. 2 percent a year from
1995 to 2013.
China has played an increasingly vital role in
Tanzania’s economic health, becoming its biggest foreign investor. Ties with China that date to
independent Tanzania’s formative decades have
facilitated signi;cant investment from Chinese
companies as the Asian country’s expanding economy has prompted it to seek resources abroad.
Tanzania’s economic growth has been re;ected
in a range of sectors. ;e Tanzanian tourism industry has expanded rapidly in recent years and now
employs nearly twice as many people as nearby
Kenya’s. ;e communication sector’s contribution
to GDP has doubled since 2008, helping to fuel
other segments of the economy through applications like mobile banking.
No sector stands to bene;t Tanzanians or the
Tanzanian economy like energy. “;e Tanzanian
energy-supply situation hasn’t been matching the
growth of the economy, so they now have to play a
catch-up game,” Mr. Mseteka says.
;e government aims to win that game through
the country’s vast untapped energy wealth. As a
result, a large number of Tanzanians could plug
into the grid for the ;rst time—and see an end to
the blackouts that plague the nation. Moreover, the
country could turn into an energy-exporting behemoth—potentially becoming a leading exporter of
lique;ed natural gas by 2025.
;e centerpiece of the Tanzanian government’s
e;ort to double the country’s power-generation
capacity to 3,000 megawatts by 2015 is a 532-
kilometer (331-mile) natural gas pipeline running
from Mtwara in the southeast to Dar es Salaam, the
nation’s largest city, in the northeast. ;e US$1.2
billion project promises to drastically alter the
energy and economic landscapes. When the Chi-nese-built pipeline is completed in the second half
of this year, it reportedly will cut the cost per kilowatt hour from roughly US$0.40 to about US$.07,
drastically lowering the cost of doing business while
easing energy demand.
Along with many other mining, drilling, transportation and energy transmission initiatives either
breaking ground or slated to begin, the pipeline
project stresses the need for another kind of pipeline: project talent. Project practitioners bemoan a
lack of project management expertise in Tanzania,
particularly in the energy sector.
“;ere are few institutions which o;er training in project management,” says Mugisha Philip
Bisanda, PMP, a technical project manager at Nokia
at a Glance
47. 8 million
(365,755 square miles)
GDP growth rate:
6. 9 percent
banking, energy, mining,
income per capita:
Tanzania’s economy has enjoyed steady growth.
From 2002 to 2013, its GDP growth rate averaged
By contrast, South Africa, often considered the
economic powerhouse of sub-Saharan Africa, grew
by just 3. 2 percent a year from 1995 to 2013.