Tanzania is considering a strategic shift in the use of its oil and gas resources by prioritising domestic fertiliser production from natural gas. This move aims to strengthen food security and reduce dependence on external markets. The proposal was outlined by Minister for Finance, Ambassador Khamis Mussa Omar, during a preparatory meeting ahead of Tanzania's participation in the 11th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank in Doha, Qatar.
The minister highlighted the vulnerability of countries that rely heavily on international supply chains, citing recent disruptions affecting major global shipping routes. He emphasised the need for African countries to strengthen domestic production and build more resilient economies capable of meeting essential needs locally. This approach would enable Tanzania to add value to its natural gas resources and produce fertiliser for domestic consumption.
Ambassador Omar also called for Tanzania to broaden its knowledge of the petrochemical economy by learning from Middle Eastern countries that have developed industries around their oil and gas resources. Although Tanzania has benefited from Norway's Oil for Development programme, it is now important to expand the country's knowledge base and explore additional ways of maximising the economic value of its energy resources.
The proposed focus on fertiliser production would provide an opportunity to link Tanzania's natural gas resources with agriculture, one of the country's key economic sectors. By using gas as a feedstock for fertiliser production, Tanzania could potentially strengthen domestic supply while creating greater value from its natural resources. This approach could also reduce exposure to fluctuations in international fertiliser markets and disruptions to global supply chains.
Ambassador Omar commended the Tanzanian Embassy in Qatar for marking a decade of diplomatic and economic relations with the Gulf nation. He described this milestone as important for strengthening trade and investment cooperation, particularly in the energy sector. The relationship also presents opportunities to expand cooperation in other areas of mutual interest.
Tanzanian Ambassador to Qatar, Habibu Mohamed, said bilateral relations had continued to deepen since the establishment of the embassy in 2017. The embassy's work is guided by seven priorities, including strengthening diplomacy, economic cooperation, foreign direct investment, tourism, employment, diaspora affairs, and higher education. Qatar's economy derives about 85 per cent of its revenue from petroleum products and remains an important potential source of fertiliser for Tanzania.
The developments come as Tanzania seeks to deepen economic ties with Qatar while exploring ways to turn its natural resource endowment into broader economic opportunities, including food security, industrial development, trade, and employment. Over 2,500 Tanzanians are currently living and working in Qatar, with 720 Tanzanians recruited as drivers for Qatar's state-owned bus company.
Key points
- Tanzania considers domestic fertiliser production from natural gas to boost food security
- The move aims to reduce dependence on external markets and strengthen domestic production
- Tanzania seeks to deepen economic ties with Qatar and explore broader economic opportunities
