Tanzania—Policy Analysis and Public-Private Dialogue for the Oil and Gas Association of Tanzania

Client: Oil and Gas Association of Tanzania

Duration: 2016-2017

Region: Sub-Saharan Africa

Country: Tanzania

Solutions: Sustainable Business

In early 2016, when the government of Tanzania was considering how to best implement its new local content legislation, the Oil and Gas Association of Tanzania (OGAT), a professional association consisting of 12 international oil and gas companies, saw a critical opportunity to engage with government stakeholders on potential local content models. OGAT realized the need to present a compelling evidence base when speaking with officials about which local content strategies can most effectively promote domestic economic growth without deterring foreign investment. The Association turned to the DAI Sustainable Business Group (SBG) to consult on this local content policy analysis and to support its public-private dialogues.

Drawing from DAI’s years of research and work building up supply chains throughout Africa, the SBG team authored a comparative analysis of Tanzania’s current local content policies in relation to six other oil- and gas-producing countries in Africa. Through these in-depth case studies, DAI helped OGAT examine which policies were successful in other countries, which were not, and why, concluding with well-informed recommendations for Tanzania’s unique context.

DAI currently supports engagement between OGAT and the government of Tanzania as a neutral, third-party advisor to facilitate the setting of realistic growth targets and the finalization of local content regulations. This includes conducting workshops to present key findings of the comparative study as well as local content policy briefs authored by DAI on specific issues, such as joint venture requirements and governance structures.

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