REPRESENTATIVES of several firms from the Netherlands recently visited Tanzania and expressed their interest to invest in various areas including energy, infrastructure and transport sectors.
The representatives from Mammoet and other Dutch firms were in Tanzania to explore opportunities and were impressed by the country's economic outlook, particularly recent discoveries of natural gas.
One of the members of the delegation, Mr Ralph Lobbe, pointed out that the mission had already visited Mozambique, where like in Tanzania, there were also massive discoveries of natural gas. The Dutch have vast experience in oil and gas industry.
It is for this reason that Tanzania stands to benefit extensively from the cooperation with the Dutch firms. What is important is to ensure that proper preparations are done in exploitation of natural gas and fair agreements were reached with the development partners.
Just like all other investors, the Dutch firms are here in search of good, if not best returns for their investments. Tanzanian negotiators are also duty bound to vigilantly see to it that the country benefits as well.
Much as fiscal and other incentives are part and parcel of the promotion of investments, they must be done prudently to ensure the win-win situation prevailed to all parties involved.
Various commentators have repeatedly warned against agreements that might lead to losses and small achievements, leaving foreigners enjoy windfall profits as was the case with mining contracts.
The country currently boasts of having more than 40 trillion cubic feet (tcf) of natural gas reserves, but the truth is that such resources are not infinite.
At one point all these resources will be exhausted and the country is going to remain with nothing. For this reason we should use every cubic feet of natural gas obtained very wisely.
It is hoped that local institutions will be adequately involved in the process of exploitation of natural gas through the government, public institutions and in some cases private firms.
It is encouraging to note that some foreign contractors in natural and energy projects are involving local firms by subcontracting part of their work. This is a good spirit that must be applauded and allowed to continue.
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