Local contracting firms in natural gas sector in Tanzania

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Case study

Tanzanian’s Natural gas sector has attracted huge foreign investment, but participation by local contracting firms has remained poor despite their importance in income generation, employment creation and poverty eradication.

Although the Natural gas sector is highly specialized, it provides indirect services opportunities for local contracting firms.

The opportunities available however have not been sufficiently grabbed by local contracting firms due to the information gap on how to create business partnerships, requirements of the Natural gas sector.

The results of the study revealed that despite the fact that natural gas sector offers a lot of opportunities to local contracting firms in Tanzania; the involvement of local contracting firms within the natural gas value chain is very minimal.

This book recommends that the government should formulate and implement selective intervention policies to overcome the challenges facing local contracting firms; this will promote and encourage active participation of local contracting firms within the natural gas sector.

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