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Nature and level of participation of stakeholders in the local content for the natural gas sector in Tanzania

Author

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  • Lazaro Chuwa

    (Institute of Accountancy Arusha)

  • Joseph Perfect-Mrema

    (University of Dar Es Salaam)

Abstract

Mineral resource endowments can support economic development, yet many African resource-rich countries lag in growth. Tanzania is expected to become a significant exporter of liquefied natural gas in the future following the discovery of natural gas reserves totalling 57.25 trillion cubic feet. However, despite local content policy, Tanzania’s gas exploration and production have shown limited impact on local community welfare. Moreover, it's uncertain if Tanzania's present local content policy, legal system, and institutional framework would avoid resource-related crises and conflicts. This study evaluates the nature and extent of stakeholder participation in Tanzania's upstream natural gas sector within the framework of local content policies. A mixed-method approach was employed, combining surveys of 221 respondents and 30 semi-structured interviews with key stakeholders in Dar es Salaam, Dodoma, Lindi, and Mtwara. Data were analyzed using NVivo software, with participation levels assessed on a five-point Likert scale. Findings reveal participation is constrained to “degrees of tokenism,” undermining freedom, transparency, and democratic information exchange in the sector. Enhancing local involvement requires greater awareness, improved transparency, and capacity-building through participatory policymaking. The study underscores the need for institutional reforms and inclusive governance to promote sustainable development and strengthen local engagement in Tanzania’s natural gas industry.

Suggested Citation

  • Lazaro Chuwa & Joseph Perfect-Mrema, 2025. "Nature and level of participation of stakeholders in the local content for the natural gas sector in Tanzania," SN Business & Economics, Springer, vol. 5(3), pages 1-28, March.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:3:d:10.1007_s43546-025-00788-w
    DOI: 10.1007/s43546-025-00788-w
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    References listed on IDEAS

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