A BASELINE REPORT - ESRFesrf.or.tz/docs/NGBRRe.pdf · effective management of the tanzanian natural...

EFFECTIVE MANAGEMENT OF THE TANZANIAN NATURAL

GAS INDUSTRY FOR AN INCLUSIVE AND SUSTAINABLE

SOCIO-ECONOMIC IMPACT

A BASELINE REPORT

Prepared by Ian S. Shanghvi

©Economic and Social Research Foundation

Acknowledgements

The Economic and Social Research Foundation (ESRF) appreciates the funding support from the

African Capacity Building Foundation (ACBF) that has made this baseline study possible. The study

was conducted in Mtwara and Lindi regions, following a pilot study in Mkuranga district in Pwani

region. The generated data set and knowledge base will be used to monitor and evaluate the socio-

economic impacts related to the development over time of the Tanzanian natural gas industry. ESRF

feels particularly privileged to continue being part of ACBF‟s successful achievements in Tanzania

and the East African region.

ESRF would also like to specially thank the research team members who worked determinedly to

collect and enter the field data. Special thanks are deserved by the Ministry of Energy and Minerals

(MEM) for agreeing to become a part and parcel of the study since its inception. Kalory Mmasy, the

natural gas expert from MEM, was resolutely engaged in the study from Mkuranga through to Mtwara

and Lindi. The services rendered by the study enumerators are also evident in the production of this

report. ESRF is, indeed, thankful to Moses Irira, Paul Masanja, Johannes Sinong‟o, Elimina Nangi,

and Jacqueline Urassa. The devotion and charismatic attitude of the experienced driver, Francis John,

was blissfully appreciated by the entire research team. These successes were, indeed, facilitated by the

visionary leadership of Dr. Donatilla Kaino along with Ian Shanghvi from ESRF who, leading by

example, guided and ensured that the research team remained fervent and focused.

ESRF would also like to take this opportunity to express its earnest gratitude to the unflinching

support received from the government officials in Pwani, Mtwara and Lindi regions. The pilot study

that was permitted by the Pwani Regional Commissioner to take place in Mkuranga district was well

supported by the District Executive Director and the rest of her team. The Regional Commissioner

Offices of Mtwara and Lindi, through their respective Administrative Secretaries, also played

functional roles in coordinating and facilitating the study. Many thanks should also go to the District

Administrative Secretaries and District Executive Directors of the Mtwara district council and Kilwa

Masoko district for availing themselves and their staff to making the study a huge success. The

leaders of the study wards and villages complemented and contributed to these efforts in a very

impressive comportment. The villages and their respective wards in brackets included Namahyakata

Shuleni and Namahyakata Barabarani (Nanguruwe) as well as Msimbati and Mtandi (Madimba), all

located in Mtwara, and Songosongo village (Songosongo) in Lindi.

Very special thanks are also being extended to the household heads and entrepreneurs who

participated in the study in the villages of Namahyakata Shuleni, Namahyakata Barabarani, Msimbati

and Mtandi in Mtwara as well as Songosongo village in Lindi. Additional entrepreneurs to thank

came from the urban areas of the Mtwara district council and Kilwa Masoko district.

ESRF is also very thankful and appreciative of the reviews provided by Shainul Bhanji and Samuel

David Game.

ESRF is highly indebted to all of you and, most of all, to Almighty God who saw us together through

the entire research process rather safely and successfully.

Table of Contents List of Tables ........................................................................................................................................... i

List of Figures ........................................................................................................................................ iii

1.0 Background ....................................................................................................................................... 1

1.1 Project Goal and Objectives .................................................................................................... 1

1.2 Global Lessons on the Potential Challenges and Opportunities of the Tanzanian Natural Gas

Industry ............................................................................................................................................... 2

1.3 Natural Gas and Related Policy in Tanzania................................................................................. 2

1.4 Anticipated Social and Economic Changes .................................................................................. 4

1.5 Anticipated Problems and Challenges in Various Economic Sectors ........................................... 4

1.6 Stakeholders Participation and Transparent Communication ................................................. 6

1.7 Policy Relevance ........................................................................................................................... 8

2.0 Research Design and Methodology .................................................................................................. 9

3.0 Project Findings .............................................................................................................................. 14

3.1 Survey Results of Interviews with Household Heads ................................................................. 14

3.1.1 A demographic, household and education profile of the respondents ................................. 14

3.1.2 Economic characteristics of the respondents ....................................................................... 16

3.1.3 State of social and economic infrastructures ........................................................................ 17

3.1.4 Energy situation ................................................................................................................... 20

3.1.5 State of security .................................................................................................................... 22

3.1.6 Social, economic and environmental issues ......................................................................... 23

3.1.7 Roads conditions .................................................................................................................. 30

3.1.8 Perceived responsibilities of stakeholders in development efforts ...................................... 30

3.1.9 Community access to information on gas-related activities from the government .............. 32

3.1.10 Experience with compensation by community members ................................................... 33

3.1.11 Land-related conflicts ........................................................................................................ 34

3.1.12 Environmental effects related to natural gas exploration and extraction activities ............ 36

3.2 Survey Results of Interviews with Entrepreneurs ....................................................................... 38

3.2.1 A demographic and education profile of the respondents .................................................... 38

3.2.2 Business characteristics ........................................................................................................ 40

3.2.3 Energy situation ................................................................................................................... 43

3.2.4 State of security .................................................................................................................... 45

3.2.5 Roads condition and significance to operation and performance of businesses .................. 46

3.2.6 Perceived responsibilities of entrepreneurs in development efforts ..................................... 47

3.3 Perspectives from the Regional and Local Government Authorities .......................................... 50

3.3.1 Mtwara region ...................................................................................................................... 51

3.3.2 Lindi region .......................................................................................................................... 58

4.0 Key Observations for Policy Consideration .................................................................................... 68

4.1 Household Heads ........................................................................................................................ 68

4.2 Entrepreneurs .............................................................................................................................. 73

4.3 Local and Regional (Central) Governments ............................................................................... 75

References ............................................................................................................................................. 84

Appendices ............................................................................................................................................ 85

Appendix A: Survey instrument for household interviews ............................................................... 85

Appendix B: Survey instrument for interviews with entrepreneurs .................................................. 95

Appendix C: A focus group discussions guide ................................................................................. 99

Appendix D: A summary of assorted economic and social (education and health) information and

data from the District Commissioner offices of the Mtwara district council (hosting the Mtwara

rural district) and Kilwa Masoko .................................................................................................... 101

Appendix E: Current and projected population statistics of Mtwara region, Mtwara district council,

Nanguruwe ward and Madimba ward ............................................................................................. 108

Appendix F: Current and projected population statistics of Lindi region, Kilwa Masoko district and

Songosongo ward ............................................................................................................................ 111

i

List of Tables Table 1.1. Age of respondents from Nanguruwe and Madimba wards in Mtwara as well as

Songosongo ward in Lindi .................................................................................................................... 15

Table 1.2. Education levels of respondents from Nanguruwe and Madimba wards in Mtwara region as

well as Songosongo ward in Lindi ........................................................................................................ 15

Table 1.3. Economic activities partaken by respondents from Nanguruwe and Madimba wards in

Mtwara region as well as Songosongo ward in Lindi ........................................................................... 17

Table 1.4. Housing conditions in Nanguruwe and Madimba wards in Mtwara region as well as


Table 1.5. Main sources of drinking water reported by respondents from Nanguruwe and Madimba

wards in Mtwara region as well as Songosongo ward in Lindi ............................................................ 19

Table 1.6. Main sources of energy to households as reported by respondents from Nanguruwe and

Madimba wards in Mtwara region as well as Songosongo ward in Lindi ............................................ 21

Table 1.7. Public view of the residents of Nanguruwe ward concerning future socio-economic changes

in Mtwara related to the development of the natural gas sub-sector ..................................................... 24

Table 1.8. Public view of Madimba ward residents concerning future socio-economic changes in

Mtwara related to the development of the natural gas sub-sector ......................................................... 25

Table 1.9. Public view of Songosongo ward residents concerning future socio-economic changes in

Lindi related to the development of the natural gas sub-sector ............................................................ 28

Table 1.10. Age of respondents from Mtwara rural district, Nanguruwe ward and Madimba ward (in

Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi) ....................................... 39

Table 1.11. Education levels of respondents from Mtwara rural district, Nanguruwe ward and

Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi) ........ 40

Table 1.12. Ownership of businesses among the respondents from Mtwara rural district, Nanguruwe

ward and Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in

Lindi) .................................................................................................................................................... 40

Table 1.13. Business capital volumes reported by the respondents from Mtwara rural district,

Nanguruwe ward and Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo

ward (in Lindi) ...................................................................................................................................... 41

Table 1.14. Number of business employees reported by the respondents from Mtwara rural district,


ward (in Lindi) ...................................................................................................................................... 42

Table 1.15. Challenges to businesses enlargement as reported by the respondents from Mtwara rural

district, Nanguruwe ward and Madimba ward (in Mtwara) as well as Kilwa Masoko district and

Songosongo ward (in Lindi) ................................................................................................................. 43

Table 1.16. Main sources of energy to businesses as reported by the respondents from Mtwara rural


Songosongo ward (in Lindi) ................................................................................................................. 43

ii

Table 1.17. Perceived responsibilities of the government in facilitating the growth and development of

businesses as reported by the respondents Mtwara rural district, Nanguruwe ward and Madimba ward

(in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi) ................................. 48

Table 1.18. Perceived responsibilities of the natural gas companies in facilitating the growth and

development of businesses as reported by the respondents from Mtwara rural district, Nanguruwe


Lindi) .................................................................................................................................................... 49

Table 1.19. Perceived responsibilities of the entrepreneurs in facilitating the growth and development

of businesses as reported by the respondents from Mtwara rural district, Nanguruwe ward and

Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi) ........ 50

iii

List of Figures Figure 1.1. Gender of respondents from Nanguruwe and Madimba wards in Mtwara as well as


Figure1.2. Water condition in Nanguruwe and Madimba wards in Mtwara region as well as


Figure 1.3. State of security as reported by respondents from Nanguruwe and Madimba wards in

Mtwara region as well as Songosongo ward in Lindi ........................................................................... 22

Figure 1.4. Experiences of roads conditions by respondents from Nanguruwe and Madimba wards in

Mtwara as well as Songosongo ward in Lindi ...................................................................................... 30

Figure 1.5. Experience with compensation for land as reported by respondents from Nanguruwe and

Madimba wards in Mtwara as well as Songosongo ward in Lindi ....................................................... 33

Figure 1.6. Land conflicts in relation to natural gas activities as reported by respondents from

Nanguruwe and Madimba wards in Mtwara as well as Songosongo ward in Lindi ............................. 34

Figure 1.7. An assortment of other land conflicts as reported by respondents from Nanguruwe and

Madimba wards in Mtwara as well as Songosongo ward in Lindi ....................................................... 35

Figure 1.8. Whether or not environmental effects were experienced during natural gas exploration

activities as reported by respondents from Nanguruwe and Madimba wards in Mtwara as well as


Figure 1.9. Whether or not environmental effects were experienced during natural gas extraction

activities as reported by respondents from Songosongo ward in Lindi ................................................ 37

Figure 1.10. Gender of respondents from Mtwara rural district, Nanguruwe ward and Madimba ward

(in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi) ................................. 38

Figure 1.11. State of security for businesses as reported by the respondents from Mtwara rural district,


ward (in Lindi) ...................................................................................................................................... 46

Figure 1.12. Condition of roads as reported by the respondents from Mtwara rural district, Nanguruwe


Lindi) .................................................................................................................................................... 47

1

1.0 Background

This section gives a background of the project, including its goal and objectives and overall relevance to

Tanzania in the face of the various experiences that other countries and Tanzania itself have gone through over

time. Is also narrates on the policy relevance of this study.

1.1 Project Goal and Objectives

The overarching goal of this project was to generate a data set and knowledge base to be used to monitor and

evaluate the socio-economic impacts related to the development over time of the Tanzanian natural gas

industry. The study was conducted in May 2014 with funding from the Harare-headquartered African Capacity

Building Foundation (ACBF). The study covered Mtwara and Lindi regions, where natural gas discoveries have

been made. The main focus was to examine the socio-economic inclusiveness and sustainability of the natural

gas sub-sector and foster an understanding of the related outcomes and impacts in connection with stakeholder

expectations. As a recent entrant in the natural gas industry, and coupled with a continued discovery of a vast

natural gas potential and an increasing international and domestic demand for the same, Tanzania must become

increasingly aware of and prepared for the socio-economic changes that are typical with this development. Such

awareness will enable Tanzania to better manage and adequately benefit from this burgeoning wealth.

Experiences from other countries suggest that developments in the natural gas industry tend to cause numerous

desirable and undesirable socio-economic, environmental, and geo-political changes. The undesirable changes

(costs) may outweigh by far the expected desirable changes (benefits) if, among other factors, there is overall

poor planning and management of the resources, including poor involvement of stakeholders in the value chain

process as well as unequal distribution of the benefits accruing from the resource wealth. Therefore, in lieu of

the highly likely occurrence of the same situation in Tanzania, this research project was designed to provide

baseline data or information right at the onset of the activities in the sub-sector for the country to monitor and

evaluate the social-economic impacts associated with the development and extraction of natural gas as well as

inform the policy and decision-making processes. To achieve this goal, the project was implemented with the

guidance of executing the following eight objectives:

1. To investigate and document the social, economic and environmental characteristics and related

experiences of the Mtwara and Lindi residents living in areas where natural gas wells are located.

2. To explore the potential social, economic, cultural and environmental changes that are likely to

occur in Mtwara and Lindi based on the expectations of the local residents.

3. To map out community perceptions of the roles and responsibilities of numerous stakeholders

(particularly the government, natural gas companies and local residents) in fostering development

subject to the anticipated successes within the natural gas industry.

4. To find out whether economic development efforts will be able to build on growth in the natural gas

industry and promote other local businesses to create strong and diverse local economies that will

be sustained after exhaustion of the natural gas resource.

5. To document the manner in which decision makers and other authorities within the central /

regional and local government entities approach and address land disputes in their jurisdictions,

including those stemming from natural gas operations.

6. To explore the manner in which the central / regional and local governments handle revenues and

expenditures associated with natural gas activities on account of transparency and accountability.

7. To investigate the approaches of the central / regional and local governments in managing public

expectations (a determinant of public support, peace, tranquility and harmony) for immediate

2

benefits from the natural gas wealth while, as a matter of fact, the nature of investments in the

natural gas industry allows for benefits to be generated after a considerably long while.

8. To study the extent to which central / regional and local governments work together in fostering

common development objectives, particularly those linked with the natural gas industry.

1.2 Global Lessons on the Potential Challenges and Opportunities of the Tanzanian

Natural Gas Industry

This chapter captures an overview of various social, economic, cultural and environmental issues from Africa

and around the world that have characterized the natural gas industry. The goal is to make the Government of

Tanzania and other stakeholders aware of the numerous challenges and opportunities embedded in the industry

so as to make informed decisions in preparing a win-win environment for sustainable and inclusive

development. It is important that deliberate efforts are directed towards ensuring that natural gas wealth remains

a resource blessing rather than becoming a resource curse.

1.3 Natural Gas and Related Policy in Tanzania

Natural gas has many domestic and industrial uses. Some of these include heating, cooling, and cooking. It is

also used for treatment and incineration of waste, metals preheating, drying and dehumidification, food

processing, glass melting, and fuelling industrial boilers. Natural gas also serves as a feedstock for the

manufacturing of some chemicals and products such as fertilizers and pharmaceutical products. These and other

uses make natural gas a pivotal factor for substantial transformations of the Tanzanian industrial base, with

momentous impacts on employment creation and broader socio-economic development and environmental

protection.

The exploration of oil and natural gas in Tanzania has been underway since 1952, with the first natural gas

discovery made in 1974 at Songosongo Island (Lindi region) and the second discovery at Mnazi Bay (Mtwara

region) in 1982 (Ministry of Energy and Minerals [MEM], 2013). The commercialization of the Songosongo

natural gas in 2004 and that of the Mnazi Bay in 2006 fuelled further exploration both onshore and offshore.

According to MEM, it was confirmed in 2010 that Tanzania has large quantities of natural gas deposits, and

more gas discoveries are expected. MEM adds that natural gas discoveries of 33 trillion cubic feet were made

by 2013 from both onshore and offshore basins, whereby onshore sites (comprising 8 trillion cubic feet) include

Songosongo, Mnazi Bay, Mkuranga, Kiliwani North and Ntorya. A total of 67 wells for both exploration and

development have been drilled between l952 and 2013, of which 53 wells are in onshore basins and 14 in the

offshore basins (MEM, 2013).

Despite these developments, the infant gas industry of Tanzania faces numerous challenges, some of which

include natural gas revenue management, natural gas infrastructure, development of domestic market for natural

gas, as well as health, safety and environmental concerns. As stated in MEM (2013, p. 2), these challenges call

for:

a. Building of an effective institutional and legal framework to administer the industry;

b. Availability of human resource with the requisite skills, attitude, discipline and knowledge of the

natural gas industry;

c. Creation of an environment to attract local and foreign investment in the natural gas industry;

d. Development of natural gas infrastructure and ensuring security and safety;

e. Development of a competitive and efficient domestic market for natural gas;

3

f. Availability of a trusted and a transparent mechanism (and its facility) for the sound management of the

natural gas revenues;

g. Compliance with health, safety and environmental standards; and

h. Management of high public expectations and conflicting views of stakeholders.

The Policy is driven by the main objective of guiding the sustainable development and utilization of the natural

gas resource and maximization of the emerging benefits as well as contributing to the transformation and

diversification of the Tanzanian economy (MEM, 2013).The government recognizes that natural gas is a

national resource for the benefit of the present and future generation of Tanzania and, therefore, identifies five

pillars to underpin the Natural Gas Policy. These pillars, as sited in MEM (2013: pp. 3-4), include:

a. Optimization of benefits to the Government and the people of Tanzania through strategic participation,

interventions and equitable benefit sharing;

b. Development and strengthening of institutional framework and human capacity to ensure an efficient

and sustainable natural gas industry;

c. Ensuring a transparent and accountable system is in place towards natural gas revenue management and

development of the natural gas industry;

d. Ensure adequate disaster management systems to prevent adverse impact and protect people‟s health,

safety and environment; and

e. Promotion and facilitation of the integration of natural gas industry and other economic sectors in the

country in order to accelerate broad based growth and socio-economic transformation.

Eventually, based on the five pillars, the government identifies 15 specific objectives to implement the main

objective. These are outlined in MEM (2013: pp.5-6), as:

a. To develop facilities for natural gas processing, liquefaction, transportation, storage and distribution;

b. To develop a competitive and efficient domestic and export market for natural gas, and ensure that the

government and Tanzanians participate effectively in the natural gas business;

c. To ensure that natural gas revenue is managed transparently, effectively and efficiently;

d. To institute appropriate pricing structure to sustain supply and demand sides;

e. To ensure the reliability of natural gas supply;

f. To promote linkages between the natural gas industry with other strategic sectors of the economy;

g. To ensure that government and Tanzanians have sufficient capacity to participate effectively in the

natural gas value chain;

h. To substantially improve Corporate Social Responsibility in communities neighboring natural gas

facilities and operations;

i. To promote rational use of natural gas in all sectors of the economy;

j. To promote, monitor and evaluate transparency and accountability in the natural gas industry;

k. To ensure compliance with Health, Safety and Environment standards in the natural gas value chain;

l. To ensure that development of natural gas industry regionally and internationally benefits Tanzania;

m. To support activities in the natural gas industry based on gender issues and addressing HIV/AIDS and

other infectious diseases;

n. To sufficiently and effectively manage public expectations on benefits emanating from the natural gas

industry; and

o. To ensure maximization of benefits from the natural gas industry through public-private partnership

(PPP) projects.

4

The policy is commendably aware of the challenges and opportunities that can be brought about by the natural

gas sector. However, for the government to confront these issues effectively it requires numerous case examples

from which to learn and evidence-based data forming the basis for decision making and action. Case examples

abound, but the baseline data requires determined efforts to cater for the specific Tanzanian case.

1.4 Anticipated Social and Economic Changes

Natural gas development and extraction lead to population increases in related communities because of short-

and long-term labour migration. According to Lloyd (2012), these changes in population have profound

implications on the provision of services (particularly housing, schools, healthcare and security), labour force

availability and skills, and local infrastructure (water, sewer, roads, telecommunication, etc.). As Lloyd adds,

natural gas operations are also expected to lead to an inflow of income that will generate many new jobs and

increase the real disposable income particularly for those employed by the industry and those in spin-off

industries and activities. Tanzania must wage deliberate plans and strategies to cope with these changes before

they become too much to handle or manage. In fact, as Neureiter (2012) observes, natural gas development in

Tanzania, especially at the exploration stage, poses alarming potential impacts on other sectors like agriculture,

fishing and tourism. Therefore, the challenge to the government and other stakeholders is to translate this

opportunity into a factor of stability as opposed to the seemingly traditional conflicts and imbalances that tend

to characterize natural gas operations.

1.5 Anticipated Problems and Challenges in Various Economic Sectors

Though expected to create economic wealth and prosperity, the mismanagement of the natural gas resource

could cause economic imbalances and constrain growth in other sectors. For example, it is common for natural

gas operations to convert agricultural and forested areas to natural gas extraction sites. If undertaken in an ad

hoc manner, this creates land use conflicts within communities and leads to antagonistic relationships between

stakeholders and even civil wars between communities. It has been widely observed that land use conflicts

usually stir up discontent against the government, natural gas extraction companies and even banks1 providing

funding to these companies.

The extraction of natural gas in many countries around the world has brought with it severe drawbacks that

sometimes outweigh the anticipated, usually much-glorified, socio-economic gains. For example, despite being

a source of wealth, natural gas resources in Bolivia have caused intensive economic, social and political

conflicts (Harford, 2012). Harford notes that the profits gained from the export of natural gas are only

benefiting a few Bolivians, thus causing dismay for the majority. Previous ethnic problems have also been

exacerbated by the discovery and extraction of natural gas, causing civil conflicts that have claimed the lives of

many people (Harford, 2012). Intrastate tensions have also burgeoned, dividing Bolivia between eastern and

western provinces with each side scrambling for a profitable share of natural gas exports (Harford, 2012).

Harford adds that people living close to fracking sites usually suffer from serious health problems caused by the

emission of toxic chemicals (e.g., benzene/carcinogen, toluene and ethyl benzene) also found in fracking water.

The typical health problems include headaches, loss of coordination, and damage to liver and kidneys.

1 For example, the Rainforest Action Network, an INGO based in San Francisco, ran an intense campaign against Citibank from 2000 to 2004,

naming them The Most Destructive Bank in the World, which forced the bank to withdraw funds for Camisea Project [that was being implemented in Peru] and to make their policies more environmentally oriented (Vences, 2006).

5

Imbalances and conflicts caused by the extraction of natural resources have also been very destructive on the

African continent. The box below presents a case study of the experience of Nigeria with its oil development

and extraction operations, from which Tanzania can draw invaluable lessons.

Oil drilling operations in Ogoniland (Nigeria) that were established in the 1950s are cited for threatening

the livelihood of the Ogoni people because they have contaminated the land, water and air. Because of

the pollution, caused by oil spills, fishing has become impossible as very few fish remain in the river due

to oil spills, the ground water is contaminated and unsuitable for drinking, and even the rain water cannot

be collected for drinking because it is acidic. Air pollution caused by the operations has also been cited

as the cause of cancer, asthma and other lung diseases among the Ogoni people, including reducing crop

yield and plant growth on surrounding farms.

Protests against the Government and Shell (the oil drilling company) culminated in violent clashes

between tribes and against the Government. Shell, on its side, influenced the Nigerian army to control

(using repression and attacks) protests by the Ogoni people. Meanwhile, the Government has used the

conflict and tension between tribes as an excuse to use heavy-handed tactics and overlook the needs of

the people.

This vicious antagonism between ethnic groups and the Government is associated with the murder of

four Government officials over night, with the accusations that were laid on the leader of the Movement

for the Survival of Ogoni People (Ken Saro-Wiwa) and four other officials seeing them through to their

execution.

Moreover, because of the „confiscation‟ of their land by oil drilling operations and the ensuing pollution,

over 100,000 Ogoni people have been forced to evacuate their homeland and become refugees in the

neighbouring country of Benin.

Source: University of Michigan (n.d.)

Even in the U.S., natural gas development has been cited for causing problems of inflation, increased cost of

living, and lack of services in the communities involved (Lloyd, 2012). Oil and natural gas companies are also

said to be so powerful that they can steer governments in the directions they choose. As Harford (2012) notes,

the lobbying power in the hands of the oil and natural gas companies within the U.S. Government makes it

difficult for the government to be transparent enough about these companies. Consequently, this makes it

difficult for the people affected by fracking to be compensated by these companies. A similar situation was

encountered in Peru whereby the experience and size of Shell and Mobil (natural gas developers) were

considerably larger than that of the government and other stakeholders, thereby giving the developers the upper

hand in relation to bargaining power and resources (Vences, 2006). This is suspected to be the case in Tanzania

as well, though the situation has gradually been improving in the recent years.

Meanwhile, although environmental advocacy is very powerful in the U.S., Harford (2012) notes that the oil

and natural gas industry continues to play a significant role in destroying ecosystems. Harford further notes that

natural gas extraction in the U.S. is cited for polluting water and air, as well as contaminating livestock, wildlife

and agricultural products in areas where fracking takes place, thereby posing health threats to humans and other

creatures. For example, livestock consume toxins deposited in water and grass thus contaminating the food

6

chain by transferring the toxins (absorbed in livestock‟s muscle tissue) to humans. A study in Garfield County

(Colorado) in a close proximity to drilling waste pits by Cornell University also found that a bull went sterile, a

herd of beef cows and pigs stopped going into heat, and a herd of sheep had stillbirths (Harford, 2012). Cornell

University observed the same problems in five other states in communities close to natural gas fracking sites.

1.6 Stakeholders Participation and Transparent Communication

Most of the conflicts associated with the extraction of natural gas tend to originate from the lack of stakeholder

participation throughout the natural gas value chain process and a failure to create a win-win environment.

These issues lay a foundation for the potential downfall of natural gas operations2 and a multitude of conflicts at

the local, national and even regional levels. Stakeholders may include the developers (the very investors in the

natural gas operations), community groups, industry or business associations, environmental groups, local

councils, government departments, youth groups, politicians, and residents. Participation of stakeholders,

especially community members, is imperative to establish a win-win environment in connection with the

development and extraction of natural gas. According to Lloyd (2012) and Vences (2006), regardless of the fact

that conflicts are hard to avoid because of the large number of stakeholders with different and competing

interests, an alignment of interests could be a major step to reduce the differences and, thus, the likelihood of

conflicts. As exemplified by the conflicts in Peru, stakeholder engagement can only be successful if community

interests are fully understood and addressed by the natural gas developers (Vences, 2006). According to Vences,

poor management of competing community interests between the Peruvian local ethnic groups led to conflicts

and rivalry between them that impacted the operations of the developers. Thus, equilibrium of the stakeholders‟

interactions is crucial for the overall performance of natural gas projects. Conflicts between two or more

stakeholders and among a stakeholder entity have colossal ramifications on other relationships and, in the

process, affect project performance. A well-planned stakeholder participation process leads to the legitimization

of the project by each stakeholder, which allows the project to develop without interruption (Rorke, 2012;

Vences, 2006). Again, while creating a dialogue within the community about community priorities is critically

important, identifying ways in which such high-priority issues can be protected and/or enhanced by the

development of natural gas is equally important (Lloyd, 2012). Therefore, effective means of communications

among the stakeholders need to be established to promote prolific dialogues and planning efforts. Key

stakeholders also need to form a task force to monitor change in these priority issues, plan for potential negative

impacts, and put in place implementation plans that better utilize the opportunities presented by the natural gas

industry.

Transparency and communication of issues related to the development of natural gas, particularly following

negotiations between the government and companies, is necessary to build public faith and garner its support

especially by clearing suspicions of corruption and betrayal. According to Neureiter (2012), effective

monitoring and public debate are critical for addressing extant and emerging worries among the members of the

public. Mutch (2012) correctly cautions that “the wider the gap between those making decisions and those

affected by them the greater the potential for misunderstandings and problems” (n.p). Stressing on the essence

of transparency in the sub-sector, Mutch avows that gas drilling companies must disclose to the public what

they are doing, their distribution of profits, and the jobs that are to be created.

2 E.g., the withdrawal of Shell from Ogoniland (Nigeria) following a series of intensive peaceful protests by the

Ogoni people in 1993 (University of Michigan, n.d.)

7

1.7 Important Lessons for Tanzania

As far as Tanzania is concerned, the baseline study was conducted rather timely in Mtwara and Lindi regions to

generate the necessary information parallel to the unfolding of this development process, including the various

social, economic, cultural and environmental impacts inherent in it. This information will not only inform the

policy and planning processes but also form a basis for the monitoring and evaluation of the impacts associated

with the development and extraction of natural gas in the country. An in-depth holistic research to ascertain the

social, economic, cultural and environmental challenges and opportunities prevailing in the communities

involved was imperative especially at the outset of the natural gas extraction projects in order to gather

benchmark data to be used to gauge the progress registered by the sub-sector over time. As suggested by

Neureiter (2012), socio-economic baseline studies should be carried out to assess the current situation and, over

time, the positive and negative impacts in all communities involved, including designing risk mitigation

measures to address the potential negative impacts of natural gas development and extraction projects. Mutch

(2012) notes that current research attention in Tanzania is being drawn to geology and engineering components

while ignoring the complex social impacts of exploration, development and extraction. The fact that people

living in southern regions of Tanzania are already complaining that natural gas exploration is not rewarding

them with work signifies conflicts in future. In fact, the rise of Tanzania as a natural gas producer was marked

by an alarming increase in conflicts between communities and the government. Mayhem first ensued on

December 27, 2012 when some of the political parties in the opposition camp coordinated a public

demonstration of Mtwara residents to claim a lion‟s share of the benefits accruing from the extraction of natural

gas in their home land. In the process, they also protested against the construction of a pipe transporting natural

gas from Mtwara to Dar es Salaam where processing would be done. A few other violent acts have been

committed by Mtwara residents in 2013. Being the most accountable stakeholder, it is dangerous for the

government to operate with complacency because the potential dangers – as the lessons above have indicated -

are readily understandable, hardly reversible, and totally undesirable. The Mtwara case ought to be appreciated

as a positive example of how things can take a different turn relative to the gas industry. What‟s more is that a

global trend reveals that the production of natural gas exceeds discovery (Korpela, 2007; Rorke, 2012). This

trend is, for example, likely going to force the Department of Energy in the U.S. Government to largely restrict

natural gas to domestic trade (Rorke, 2012). Other developed countries, such as Canada and numerous

European countries, are also likely to follow the same cause of action and open their radars in search for new or

additional sources elsewhere, including Africa. In fact, gas production in Africa has been growing at an

approximated rate of 4% per year since 2000, reaching about 203 bcm by 2011 (Ernst & Young, 2012). Algeria,

Egypt and Nigeria top the rest of African countries in gas production with a combined total share of 88% (Ernst

& Young, 2012). Ernst & Young reveals that East Africa is now emerging as a new epicenter for natural gas in

the world. Thus, the attention of developed countries is increasingly being drawn to African countries, including

Tanzania. As the aforementioned examples of Bolivia, Peru and the U.S. experiences vindicate, Tanzania will

not be an exception to similar resource-related troubles if it fails to engage in this development process with a

deserving precaution and crystal-clear direction right from the beginning. On top of putting its people first, as

the policy reveals, the government must deliberately and rigorously engage them in the entire value chain

process so as to gain their support and inculcate a true sense of ownership in them. A win-win relationship must

be established, and every stakeholder must know what the other is doing and the related implications to the

overall win-win environment.

8

1.7 Policy Relevance

Tanzania is just embarking on the production of natural gas, and the draft natural gas policy document has

recently been prepared. This project generates vital data and information pieces to inform the government and

other stakeholders about the status quo of the socio-economic development as well as environmental and

cultural changes relative to the natural gas industry. It does this by enlisting the experiences and expectations of

Tanzanians – using Mtwara and Lindi as case examples – so as to further inform the policy and decision-

making processes among the different stakeholder groups. In essence, the project calls for the achievement of a

sustainable socio-economic mainstreaming or inclusion of the new natural gas sub-sector in the ways of life of

Tanzanians within a holistic win-win framework.

The project maps out baseline data and information to inform the government and other policy stakeholders of

the socio-economic statuses of the Mtwara and Lindi communities that are hosting the natural gas extractive

sites. This information will help in gauging future socio-economic changes versus the currently inventoried

situation to understand and evaluate the impact of the industry on these communities, as well as identify and

manage their revolving socio-economic needs and expectations. In other words, the baseline information is

expected to guide the government in planning for the adaptation of the anticipated changes as well as crafting of

measures to execute such plans.

The study also informs the government of existing gaps in capacity and work relations relative to the manner in

which the central (regional) government interacts with the local government, as well as the gaps in involvement

or inclusion of people at the grassroots level, in implementing its development objectives that are associated

with, though not limited to, the natural gas sub-sector. These gaps, having clear policy implications, impact a

range of social, economic, cultural and environmental issues that determine the success of development plans

and programmes.

Essentially, this project calls for deliberate efforts to ensure that natural gas remains a resource blessing as

opposed to a resource curse. Given that Tanzania is inadequately experienced with management of the natural

gas resource, it is crucially important that the country broadens its awareness of and strategically positions itself

to optimally accrue the benefits embedded in its natural gas endowment. Part of the strategic positioning should

embrace ensuring that the natural gas industry is a catalyst for vast transformations in human development and

inclusive economic growth for all Tanzanians, whilst fostering environmental justice and reservations for the

future generations. Therefore, information and data that feed into the policy processes leading to such inclusive

transformations while, at the same time, embracing the pillars of sustainability, are of considerable value to

Tanzania.

9

2.0 Research Design and Methodology

The baseline study was carried out in Mtwara and Lindi regions in May 2014 with funding from the African

Capacity Building Foundation (ACBF). It involved data collection from three groups of respondents: (1)

community residents residing in communities hosting (on-shore) natural gas wells, (2) entrepreneurs from the

communities and districts hosting (on-shore) natural gas wells, and (3) local and regional governments. The

former strictly included the district councils within which (on-shore) natural gas discoveries have been made. In

all cases, an introduction of the purpose of the field visits and brief description of the research project were

made clear to the respondents, and consent was sought for their participation. The respondents were informed

that their responses would be analyzed anonymously, as well as informed of their rights to withdraw from the

interview at any time or answer only those questions they were comfortable with. All the questions had been

translated from English to Kiswahili and were, therefore, administered in Kiswahili.

Before embarking on the field trips, ESRF had conducted an inception workshop in the second quarter of 2013

that invited a range of stakeholders from the public and private sectors to discuss the rationale and objectives of

the study. The objectives underwent minor revisions. This activity was followed by a pilot study in Mkuranga

district in Pwani region, where natural gas has also been discovered, to test the survey instruments and focus

group discussion guide. This activity was implemented during the fourth quarter of 2013. The outcomes were

rewarding, whereby not only were the household survey and discussion guide modified but also the need to

interview the entrepreneurs was realized. As a result, therefore, the survey for entrepreneurs was designed.

The actual study in Mtwara and Lindi followed in May 2014. Prior to travelling to the field, ESRF had

submitted a letter to the Permanent Secretary of the Ministry of Energy and Minerals to introduce the project

and ask the Ministry to provide one of its officers to participate in the data collection exercises. The Ministry

responded positively, and the governmental official was made part of the team. Also, ESRF had phoned and

submitted letters to the Regional Administrative Secretaries of Mtwara and Lindi to introduce them to the study

and seek their support in making the study a success. The Regional Administrative Secretaries wrote letters to

the respective District Administrative Secretaries to introduce them to the study as well as ask them to provide

support to the project team, including providing field guides. These activities went smoothly.

The project team was composed of nine personnel; including one project lead, one project coordinator, six

enumerators, and one driver. The enumerators were considered on the basis of the strengths of their curriculum

vitas and hired upon success at interviews. They were then trained twice, one time just before the pilot study

and another time before the actual field work.

Data collection involved the following processes:

(1) Community residents:

Data collection from the community residents was achieved using a survey (Appendix A). Participants were

invited to answer a mixture of open- and close-ended questions, whereby enumerators wrote down their

responses. The initial approach was to interview household heads found in every third house after the first or

previous one completing the survey. However, this approach proved to be difficult because most of the

household heads were not at home during the time of the interview. The alternative resorted to was, therefore, to

interview them at random – regardless of where they were at the time, so long as they confirmed to be heads of

their households.

The Mtwara-based household heads engaged in the study included those coming from Namahyakata Shuleni

and Namahyakata Barabarani villages in Nanguruwe Ward, which share the Ntorya gas wells. They also

included those residing in Msimbati village located in Madimba ward, where the Mnazi Bay gas fields are

10

hosted. On the side of Lindi region, household heads from the village of Songosongo, where the Songas gas

operations are being carried out, were involved in this study.

The objective was to interview 55 household heads from each of the wards. However, the project team was

challenged by the lack of household heads at the time of the interview. Ultimately, a total of 51 (93%)

respondents from Namahyakata, 50 (91%) from Msimbati and 36 (65%) from Songosongo villages were

interviewed. Interviews of the household heads from Songosongo were, however, conducted at Kilwa Kivinje

due to severe seasonal winds that had disturbed the ocean, thereby endangering seawater transportation. With

the advice and help of the Kilwa Masoko District Administrative Secretary, government officials from

Songosongo village were summoned to Kilwa Kivinje to help with identifying the household heads and inviting

them to the interview. These household heads were arriving from Songosongo Island using water transport.

However, only a few people could travel from the island owing to the severe winds, hence limiting the number

of people participating in the interviews.

(2) Entrepreneurs:

Interviews with entrepreneurs also involved a survey (Appendix B) carrying a mixture of open- and close-ended

questions, whereby enumerators recorded their responses. The Mtwara-based entrepreneurs engaged in the

study included those coming from Namahyakata Shuleni and Namahyakata Barabarani villages in Nanguruwe

Ward, as well as Mtwara rural district, in which the Ntorya gas wells are found. They also included those

residing in Msimbati village located in Madimba ward, where the Mnazi Bay gas fields are located. On the side

of Lindi region, entrepreneurs from the village of Songosongo and Kilwa Masoko district, in which the Songas

gas operations are located, were involved in this study. The respondents were identified at random by the

enumerators who scoured the various streets of every locality.

The objective was to interview 60 entrepreneurs from Mtwara rural district (Mtwara) and 60 entrepreneurs

Kilwa Masoko District (Lindi), as well as 15 from Namahyakata villages and 15 from Msimbati village

(Mtwara) and 15 from Songosongo village (Lindi). However, the total number of the respondents included 56

(93%) from Mtwara rural district and 41 (68%) from Kilwa Masoko District. Respondents from the local

communities totaled up to 13 (87%) from Namahyakata villages and 10 (67%) from Msimbati village in

Mtwara, as well as only 4 (27%) from Songosongo village. As explained above, the interviews with the

entrepreneurs from Songosongo village had to be conducted at Kilwa Kivinje following the constraints with sea

transportation imposed by the seasonal winds at the time of the interview. However, much as the government

officials from Songosongo village assisted with identifying the entrepreneurs arriving at Kilwa Kivinje, only a

few of them managed to travel. In all cases, except for the Mtwara rural district, the number of entrepreneurs

within reasonable reach was limited as well as, in some cases, some of the entrepreneurs declined from offering

their time to the study for undisclosed reasons.

(3) Local and regional governments:

Officials from the local (specifically district council) and regional governments of Mtwara and Lindi were also

engaged in focus group discussions. Two focus group discussions were held in each region, one with the local

and another with the regional government officials. This included a total of 10 participants per focus group

discussion, who deal with issues related to economic planning, business development, land use management,

provision of social services, and administration. A set of questions (Appendix C) was used to guide all the

discussions to capture the perspectives of the local and regional governments on citizen and local government

involvement or inclusion by the central government in various decision-making processes related to the natural

gas sub-sector as well as the management of public expectations by the local and central governments. Other

issues related to the management of revenues and expenditures related to the sub-sector, efforts to ensure

sustained development efforts after the natural gas is exhausted, and land use conflicts. The participants also

11

discussed on the social and environmental effects of natural gas operations as well as the preparedness of the

residents to harness the assorted entrepreneurship opportunities being stimulated by the natural gas industry.

The officials were also asked to provide data in substantiating the findings from the surveys and focus group

discussions. Appendix D carries a summary of the related economic and social (education and health)

information and data from the District Commissioner offices of Mtwara district council and Kilwa Masoko

district. Further information, particularly on the current and projected population changes for the two regions,

was collected using the regional census data for 2012 by the Tanzanian National Bureau of Statistics.

Appendices E and F present these information and data for Mtwara and Lindi regions, respectively.

The specific objectives, including corresponding research questions, of the baseline study are outlined below:

a. To investigate and document the social, economic, business and environmental characteristics and related

experiences of the Mtwara and Lindi residents living in areas where natural gas wells are located.

i. What is the current state of affairs in terms of education levels, participation in economic activities,

family and housing, condition of the social infrastructure, utilization of energy sources, adequacy of

the physical infrastructure, peace and security, performance of businesses, and environmental

justice?

b. To explore the potential social, economic, cultural and environmental changes that are likely to occur in

Mtwara and Lindi based on the expectations of the local residents.

i. To what extent are the residents of Mtwara and Lindi aware of the social, economic, cultural and

environmental changes that are likely to be brought about following the launch of natural gas

operations?

ii. How do the residents of Mtwara and Lindi categorize (whether positive or negative) the

anticipated social, economic, cultural and environmental changes following the launch of natural

gas operations?

c. To map out community perception of the roles and responsibilities of numerous stakeholders (particularly

the government, natural gas companies and local residents) in fostering development subject to the

anticipated successes within the natural gas industry.

i. What is the public opinion about the roles and responsibilities of the local and central government

in forging its development needs with the aid of the natural gas sub-sector?

ii. In what ways are the local resident of Mtwara and Lindi prepared to support the government in

achieving these development needs?

d. To find out if economic development efforts will be able to build on growth in the natural gas industry and

promote other local businesses to create strong and diverse local economies that will be sustained after

exhaustion of the natural gas resource.

12

i. What role is the natural gas industry subjected to in creating strong and diverse national,

regional and local economies that will be sustained within and, more importantly, beyond the

life cycle of the gas development schemes?

ii. What is the perception of the local and central governments regarding the preparedness of the

Mtwara and Lindi entrepreneurs to harnessing the numerous business opportunities being

spearheaded by the discovery of natural gas within the regions? How do the government

authorities creating a supporting environment to enable these entrepreneurs to utilize such

opportunities with reasonable gains?

e. To document the manner in which decision makers and other authorities within the central (regional) and

local government entities approach and address land disputes in their jurisdictions, including those

stemming from natural gas operations.

i. What is the general history of land conflicts in the communities and regions at large? What are

the specific land disputes being caused or fuelled by the discovery of natural gas within the

communities and regions?

ii. How do local and regional governments respond to land use conflicts?

iii. What gaps exist in the capacities of the local and regional governments to resolve the land

disputes and how can these gaps be filled?

f. To explore the manner in which the central (regional) and local governments handle revenues and

expenditures associated with natural gas activities on account of transparency and accountability.

i. How will local and regional governments manage the revenues to augment their fiscal health and

protect the interests of their citizens in a sustainable manner? How will the expenditures be

managed? What is the current experience and future plan relative to the management of revenues

and expenditures linked to the benefits emanating from the natural gas industry?

ii. How will the revenues and expenditures be accounted for in manners that ensure transparency?

g. To investigate the approaches of the central (regional) and local governments in managing public

expectations (a determinant of public support, peace, tranquility and harmony) for immediate benefits from

the natural gas wealth while, as a matter of fact, the nature of investments in the natural gas industry allows

for benefits to be generated after a considerably long while.

i. What measures and procedures are being waged by the local and regional governments towards

ensuring that the residents of Mtwara and Lindi are adequately aware of the fact that they should

not expect immediate benefits from the gas industry as investments in the industry are to pay off

after a considerably long while?

ii. What has been the successes (or challenges) of implementing such measures?

h. To study the extent to which central (regional) and local governments work together in fostering common

development objectives, particularly those linked with the natural gas industry.

13

i. How does the regional government involve the local government in planning as well as making

and implementing development decisions that respond to the requirements of the direct and

indirect investments in the natural gas industry?

ii. What are the experiences of both the local and regional governments with this involvement, and

what can be done to improve it?

The section of the report corresponding to the qualitative data collected through the focus group discussions that

were conducted in Mtwara and Lindi were validated in August, 2015. The participating government officials

were reminded that the exercise was not aimed at collecting new data (i.e., beyond May 2014 when the original

data was collected) but only to cross-check the narrated information and correct it on the basis of May, 2014.

The two sessions in Mtwara region were attended by eight participants each, while those in Lindi region by nine

participants each. This exercise proved to be very useful across the study regions and localities, and the

feedback has played a substantial role in improving the validity of the report.

14

3.0 Project Findings

This chapter presents the findings of the project, as categorized in three main sections: (1) survey results of

interviews with household heads, (2) survey results of interviews with entrepreneurs, and (3) findings from

focus group discussions. Appendix D carries a summary of economic and social information and data from the

District Commissioner offices of Mtwara and Kilwa Masoko districts. As noted earlier, further information,

particularly on the current and projected population changes for the two regions, was also gathered from the

regional census data for 2012 by the Tanzanian National Bureau of Statistics and is presented in Appendices E

and F for Mtwara and Lindi regions, respectively.

3.1 Survey Results of Interviews with Household Heads

As explained in the methodology section, a number of household heads in Mtwara region were interviewed in

Namahyakata Shuleni and Namahyakata Barabarani villages (around Ntorya gas fields) in Nanguruwe ward as

well as Msimbati and Mtandi villages (around Mnazi Bay gas fields) in Madimba ward. In Lindi, such

interviews involved household heads from Songosongo village (around Songosongo gas fields) in Songosongo

ward. This part of the report presents the findings of the interviews. However, for reporting purposes, these

villages will be represented by the names of their respective wards (i.e., Nanguruwe, Madimba, and

Songosongo).

3.1.1 A demographic, household and education profile of the respondents

This section presents a profile of the respondents in terms of their demographic and household characteristics.

Gender characteristics

Household members participating in the baseline study were predominantly males. As shown in Figure 1.1, they

included 63% and 37% male and female respondents, respectively, from Nanguruwe ward (around the Ntorya

gas fields) in Mtwara. Respondents from Madimba ward (around Mnazi Bay gas fields) in Mtwara included

58% males and 42% females. Respondents from Songosongo ward (around Songosongo gas fields) in Lindi

were comprised of 81% males and 19% females.

Figure 1.1. Gender of respondents from Nanguruwe and Madimba wards in Mtwara as well as

Songosongo ward in Lindi

15

Age characteristics

Table1.1 shows that about a quarter of the respondents in Nanguruwe (29%) and Madimba (24%) wards in

Mtwara belong to the age clusters of 65 years and above and 31 to 35 years, respectively. Of the respondents

from Songosongo ward, 22% were aged between 31 and 35 years. While none of the respondents across the

study regions came from the age category of 15 or less years old, very few belonged to the 56 to 60 and 61 to 65

years of age brackets.

Table 1.1. Age of respondents from Nanguruwe and Madimba wards in Mtwara as well as Songosongo

ward in Lindi

Years of age Nanguruwe ward Madimba ward Songosongo ward

15 or less 0 0 0

16-20 1 1 1

21-25 3 4 4

26-30 5 6 7

31-35 6

36-40 3 6 4

41-45 4 9 1

46-50 4 1 5

51-55 6 4 2

56-60 2 0 2

61-65 2 2 1

65 and above

5 1

51 50 36

Levels of education

Table 1.2 reveals that most of the respondents across the study regions (i.e., 63% in Nanguruwe and 68% in

Madimba wards in Mtwara, as well as 64% in Songosongo ward in Lindi) have primary school education.

Meanwhile, there are more respondents from Nanguruwe and Madimba wards having not been to school at all

than their counterparts from Songosongo ward who, by further comparison, comprise of more people with

secondary school education.

Table 1.2. Education levels of respondents from Nanguruwe and Madimba wards in Mtwara region as

well as Songosongo ward in Lindi

Education levels Nanguruwe ward Madimba ward Songosongo ward

Not educated 16 13 3

Primary school

Secondary school 3 2 10

University/college 0 1 0

51 50 36

15

12 8

23 34 32

16

Number of dependants

Respondents from Nanguruwe and Madimba wards in Mtwara as well as Songosongo ward in Lindi report an

average number of 5 dependants per household. However, the range of minimum and maximum number of

dependants varies from 0-20 in Nanguruwe, 0-14 in Madimba, and 1-13 in Songosongo. A substantial number

of the households in Nanguruwe (11 out of 51 respondents, or 22%) and Madimba (13 out of 49 respondents, or

27%) have four dependants. The number of dependants is larger among the responding households of

Songosongo, where 23% (8 out of 35 respondents) of them report having 6 dependants.

3.1.2 Economic characteristics of the respondents

The primary and secondary economic activities of the respondents across the three study regions, in addition to

their reported average daily incomes, are profiled in this section.

Primary and secondary economic activities

As shown in Table 1.3, farming is a dominant economic activity among the respondents from Nanguruwe

(81%) and Madimba (51%) wards in Mtwara. Their counterparts in Songosongo ward in Lindi are primarily

engaged with different types of entrepreneurship activities (40%), such as food vending/restaurant, selling fish,

and carpentry. Meanwhile, a majority of the respondents also partake in various secondary economic activities.

They respectively include 55% (26 out of 47 respondents) and 59% (29 out of 49 respondents) from Nanguruwe

and Madimba wards, as well as 66% (23 out of 35 respondents) from Songosongo ward. Most of the secondary

economic activities among both the Mtwara- and Lindi-based respondents are centered on entrepreneurship;

such as selling charcoal, fruits, timber, mats, food, local brew, and furniture. Some of their additional activities

include teaching and working as labourers.

Average daily incomes

Participants were also asked to report on the estimated daily incomes stemming from their participation in the

various economic activities. Unlike in Songosongo ward where all the respondents are earning incomes, both

Nanguruwe and Madimba wards had one respondent each with no income at all. Also, a significant number of

the respondents from Nanguruwe (21 out of 50, or 42%) and Madimba (16 out of 49, or 33%) could not

estimate their daily incomes mainly because they are engaged with farming activities and their incomes are

seasonal and unpredictable. Only one respondent from Songosongo faced the same challenge on similar

grounds.

Respondents from Nanguruwe have a daily average income of Tshs 3,724, with the range of minimum and

maximum daily incomes varying from Tshs 250 to Tshs 20,000 respectively. Their counterparts from Madimba

have the average daily income of Tshs 5,827, ranging from Tshs 200 to Tshs 30,000 per day. Meanwhile, 5 out

of 28 (18%) of the respondents from Nanguruwe ward and 8 out of 32 (25%) of the respondents from Madimba

earn Tshs 2,000 per day, being the mode.

Apparently, with their average daily incomes ranging from Tshs 3,000 to Tshs 300,000, respondents from

Songosongo report a higher average daily income of Tshs 36,386 in comparison to their counterparts in Mtwara.

Meanwhile, 5 out of 35 (14%) respondents earn Tshs 10,000 per day, also being the mode.

17

Table 1.3. Economic activities partaken by respondents from Nanguruwe and Madimba wards in

Mtwara region as well as Songosongo ward in Lindi

Primary

economic

activities

Nanguruwe ward Madimba ward Songosongo ward

Frequency No. of

participants

Frequency No. of

participants Frequency

No. of

participants

Farming

1 to 7

1 to 6 − −

Entrepreneurship 7 1 to 4 14 1 to 4

1 to 4

Fishing − − 6 1 to 3 9 1 to 5

Transportation − − − − 5 1

Others − − 4 N/A 7 N/A

None 2 N/A − − − −

Total 47 − 49 − 35 −

Secondary

economic

activities

Farming

7 2 to 3 7 1 to 6 − −

Entrepreneurship

1 to 6

1 to 4

1 to 2

Fishing − − 8 1 to 4 − −

Transportation − − − − − −

Others 7 N/A − − 11 N/A

None − − 1 N/A − −

Total 26 − 29 − 23 −

3.1.3 State of social and economic infrastructures

Information from the respondents about their housing standards, condition of water, sources of drinking water

and perceived distances to sources of drinking water are captured in this section.

Housing condition

As depicted in Table 1.4, 74% of the households from Nanguruwe ward say that their houses are roofed with

thatch as compared to 28% from Madimba ward, where 42% of the respondents also say that their houses are

roofed with iron sheets. Apparently, nearly two-thirds (58%) of the respondents from Songosongo ward report

having houses that are roofed with iron sheets.

On the other hand, almost all of the respondents (98%) from Nanguruwe as compared to three quarters (76%)

from Madimba report that their houses are made of mud walls. Meanwhile, a third (33%) of their counterparts

from Songosongo reports having the walls of their houses made of cement.

38

14

12 13 12

25

18

Table 1.4. Housing conditions in Nanguruwe and Madimba wards in Mtwara region as well as


Housing condition Nanguruwe ward Madimba ward Songosongo ward

Frequency Percentage Frequency Percentage Frequency Percentage

Roof:

Thatch 38

14 28 4 11

Iron sheets 12 24 21

21

Makuti 1 2 15 30 11 31

Total 51 100 50 100 36 100

Wall:

Mud 50

38

10 28

Cement 1 2 12 26 12

Other (lime blocks,

stones & trees) 0 0 0 0 14 39

Total 51 100 50 102 36 100

Floor:

Dust 49

27

4 11

Cement 2 4 22 44 26

Lime 0 0 0 0 4 11

Other (mixture of

dust & cement,

mixture of lime &

stones, and tiles)

0 0 1 2 2 6

Total 51 100 50 100 36 100

Again, a significant number of respondents (96%) from Nanguruwe as compared to at about half (54%) of those

from Madimba say that the floors of their houses are typically made of dust. By contrast, most of the

respondents (72%) from Songosongo have cement floors.

Condition of water

Figure 1.2 shows that the water condition in Nanguruwe is extremely poor as reported by approximately 62% of

the respondents. Nearly 22% of the respondents consider the water condition average, while only about 16% are

pleased with the water condition.

96

74

76

54

58 42

98

33

72

19

Figure1.2. Water condition in Nanguruwe and Madimba wards in Mtwara region as well as Songosongo

ward in Lindi

In Madimba ward, 50% of the respondents say the water condition is average as compared to nearly a third

(28%) considering it as being poor. A minority (22%) are happy with the condition of the water they are using.

Similarly to Madimba, 46% of the respondents from Songosongo consider the water condition to be average.

While about a third (28%) of the respondents considers the water condition as being good, those labeling it poor

constitute 23%.

Main sources of drinking water

Respondents identified their major sources for drinking water (Table 1.5). Those in Nanguruwe reported two

main sources that include pumping wells (42%) and ponds (40%). However, those in Madimba and Songosongo

reported one very predominant source each, including regular wells (91%) and water taps (97%) respectively.

Table 1.5. Main sources of drinking water reported by respondents from Nanguruwe and Madimba

wards in Mtwara region as well as Songosongo ward in Lindi

Sources of water

for drinking

Nanguruwe ward Madimba ward Songosongo ward

Frequency Percentage Frequency Percentage Frequency Percentage

Pond 19

4 9 0 0

Pumping well 20

0 0 0 0

Regular well 6 12 41

1 3

Regular well & pond 1 2 0 0 0 0

Water stream 2 4 0 0 0 0

Water tap 0 0 0 0 30

Total 48 100 45 100 31 100

Perceived distances to sources of drinking water

Respondents were also asked about the time they spend (one-way, walking) to fetch drinking water based on

their judgment of whether they regard such time spent as being near, average distance, or very far. Nearly half

(45%) of the respondents from Nanguruwe said it takes them five minutes walking to the water sources, which

they consider a near distance. The average distance, on the other hand, was reported to be 30 minutes as well as

8

1132

0

Nanguruwe

Good

Average

Poor

Not sure

11

25

14 0

Madimba

Good

Average

Poor

Not sure

10

16

81

Songosongo

Good

Average

Poor

Not sure

40

42

91

97

20

120 minutes, each fetching 27% (or 3 out of 11) of the responses. Meanwhile, they categorized a walk of 60

minutes (55% or 16 out of 29 respondents) as being very far.

At least a third (36% or 9 out of 25 respondents) of those responding in Madimba considers a 10 minutes one-

way walk as relatively near. Madimba respondents also viewed a one-way walking distance taking 30 minutes

as being average. They (4 out of 4 respondents or 100%) decided that a distance taking 60 minutes one-way is

very far.

Similarly to Nanguruwe, many respondents (10 out of 26, or 38%) from Songosongo walk over a near one-way

distance of five minutes. They perceived having to walk over a one-way distance of 30 minutes (100% or 3 out

of 3 respondents) as constituting an average distance. As for the respondents from the Nanguruwe and Madimba

wards in Mtwara, Songosongo respondents (4 out of 6, or 67%) also viewed a one-way walking distance of 60

minutes as being very far.

3.1.4 Energy situation

This section presents information about the respondents from the three study regions about their sources of

energy, how they assess the affordability of connection and maintenance charges for electricity, and their

awareness of domestic uses of natural gas.

Sources of energy to households

Table 1.6 shows that about one-half of the respondents from Nanguruwe derive most of their energy from a

combination of firewood and kerosene, followed by charcoal. To them, however, firewood is the most

predominant source of energy as reported by 50 out of the 51 respondents (98%).

Similarly, respondents from Madimba ward largely depend on firewood and kerosene. They also cite firewood

as being their most significant source of energy as evidenced by 44 out of 48 (92%) responses.

Meanwhile, a larger proportion of the respondents from Songosongo use a combination of electricity, firewood

and charcoal for energy. Unlike those in Mtwara, a substantial number of respondents from Songosongo also

solely derive their energy from electricity as well as from a mixture of electricity and other sources. In fact, they

specify that electricity in their leading source of energy (14 out of 35 respondents, or 40%), followed very

closely by firewood (13 out of 35 respondents, or 37%).

21

Table 1.6. Main sources of energy to households as reported by respondents from Nanguruwe and

Madimba wards in Mtwara region as well as Songosongo ward in Lindi

Sources of energy to households Nanguruwe Madimba Songosongo

Frequency Frequency Frequency

Electricity 0 3

Charcoal 1 1 0

Firewood

9 1

Kerosene 0 1 0

Charcoal & firewood 1 0 1

Firewood & kerosene

0

Charcoal, firewood & kerosene 10 2 0

Charcoal & kerosene 0 1 0

Electricity & charcoal 0 1 2

Electricity & firewood 0 0 1

Electricity & kerosene 0 0 2

Electricity, charcoal & firewood 0 3

Electricity, charcoal, firewood & kerosene 0 6 4

Electricity, firewood & kerosene 0 2 1

Electricity, charcoal & kerosene 0 0 2

Electricity, charcoal & other 0 0 1

Electricity, charcoal, firewood, kerosene & other 0 0 2

Total 51 49 35

Affordability of connection and maintenance charges for electricity

Respondents were also asked to share their experiences regarding their financial abilities to manage the cost

related to getting connected to electricity and managing regular service maintenance charges. The residents of

Nanguruwe could not relate to this scenario because they are not connected to electricity. However, most of the

respondents from Madimba (9 out of 15, or 60%) considered the connection charges as being rather

burdensome. At the same time, the cost of maintaining the power service was also reported to be overwhelming

(12 out of 15 respondents, or 80%).

To the contrary, respondents from Songosongo reported the cost of connecting to electricity as ranging between

average (4 out of 26 respondents, or 15%) and significantly low (15 respondents or 58%). Also, while 25% of

the respondents (5 out of 20) consider the power service maintenance charges to be rather low, a whole 45% (9

respondents) access it for free.

Awareness of domestic uses of natural gas

The survey respondents revealed their awareness of the various uses of natural gas at domestic level. Those

from Nanguruwe mainly perceive its use for generating electricity and providing energy for cooking (i.e., 12 out

of 51 respondents, or 24%). Their counterparts in Madimba (7 out of 49 respondents, or 14%) cite it for

generating electricity. Notably, a striking 71% (36 out of 51) and 65% (32 out of 49) of the respondents from

Nanguruwe and Madimba, respectively, have no idea what natural gas is used for at domestic level.

15/29%

24/47% 20/39%

11/31%

7/20%

22

Meanwhile, respondents from Songosongo largely perceive natural gas as a source of energy for electricity

generation and cooking (15 out of 35 respondents, or 43%). Markedly, 40% (14 0ut of 35) of the respondents

are unaware of any use of natural gas at domestic level.

3.1.5 State of security

Figure 1.3 reveals the experiences of the respondents regarding the state of security in their localities. At least

two-thirds of the respondents (67%) in Nanguruwe ward consider their communities to be safe. They

specifically cite the absence of crimes in their communities amidst living in harmony as the reasons behind this

response (“We live in great understanding, you may safely leave your bicycle outside for three days”, “we

undergo locally organized training for community policing”; “we have no means of stopping them from taking

our gas away by force, we do not like it because we are not considered as stakeholders”).Almost a third (29%)

of the respondents regards their communities as being only somehow safe. Examples of such reasoning include:

“there are thieves and criminals, this month (May 2014) they have burned down three houses in the village”;

“animal theft, raping, robbing, and burning down of houses”; and “security prevails but not formal (police).”

Meanwhile, only about 4% of the respondents from Nanguruwe consider their communities unsafe (i.e., “the

presence of gas companies intimidates me” and “there is a lot theft going on”).

Safety is also largely prevalent in Madimba ward as testified by 78% of the respondents (“I have never seen

riots”, “I have never been a victim of theft or heard of anyone who was victimized by theft”, “we have a police

post as well as community policing”, “we pick grenades from time to time but they have not caused any

disaster”, “it‟s safe nowadays but in the past we experienced lots of tear bomb attacks from the police.” Also,

16% of the respondents say their community is somehow safe subject to, for example, “some theft events

occur”, “because of frequent mayhem related to the gas wealth”, and “because people are scared of the soldiers

coming to enforce security.” The remaining 6% of the respondents saying their community is not safe claim that

“theft cases are many”, “there is frequent tear bomb attacks and the arrival of soldiers” and “I‟m simply scared

of the issues caused by the presence of natural gas.”

Figure 1.3. State of security as reported by respondents from Nanguruwe and Madimba wards in

Mtwara region as well as Songosongo ward in Lindi

As for the Mtwara-based respondents, most of the Songosongo villagers (86%) participating in the survey also

consider their communities safe (“our village is very safe, unlike in Kilwa Kivinje”; “we have security guards in

place”, “we all live like a family”, “security is very high because we are surrounded by the ocean, making it

34

152

Nanguruwe

Safe

Someho

w safe

Not safe39

83

Madimba

Safe

Somehow

safe

Not safe30

2 3

Songosongo

Safe

Somehow

safe

Not safe

23

difficult to escape in case one causes havoc.” However, there are slightly more respondents (8%) considering

Songosongo unsafe (e.g., “population increase has caused more criminal events like theft”) than those branding

it as somehow safe (6%) (“some misunderstanding arise regarding the drinking water we are being provided

with by PanAfrican Energy”; and “we are not comfortable because of explosions and fire flames coming from

natural gas plants, we are unable to get used to this situation”).

3.1.6 Social, economic and environmental issues

Lessons from other parts of the world reveal that developments in the natural gas economies go hand in hand

with several changes particularly in the communities concerned. A variety of variables were selected to garner

the perceptions or anticipations of the community members regarding the future of their communities or regions

in relation to possible changes associated with the natural gas economy.

As shown in Table 1.7, responses by community members in Nanguruwe reveal that they are largely optimistic

that natural gas will be associated with certain changes over time. Most of them link their optimisms

particularly to developments in businesses (86%), increase in population (76%), and improvements in

accommodation services (74%), roads (74%), crops farming (74%) and employment (72%). Very few people do

not believe that changes will occur as far as these variables are concerned, more so in relation to access to water

(24%) and health (24%) services. A striking 82% of the respondents are in suspense regarding whether or not

the railway system will become operational in their region. They are also unsure of whatever changes to expect

relative to the fisheries industry (56%), air transport (54%), and the port infrastructure (48%).

Changes will occur:

Businesses

- Most people will partake in businesses due to

opportunities that will be presented by the gas

industry.

- Innovative ideas especially from newcomers

will take us to the next level of development.

Population

- Some of the migrants are already settling down in

Mtwara, we see them building houses.

-Many people will relocate to Mtwara being attracted

to the opportunities provided by the gas industry.

- Population will decrease because the gas is causing

people to be tortured and even murdered by the army

and police force; I think gas will be left with no one to

use.

Crops farming

- Increase of population will expand the

market of our crops and improve the

standard of our lives because of improved

income generations.

- Poisonous chemicals from natural gas

extraction activities are likely going to

pollute the air and affect a steady growth of

certain crops.

Employment

- We the villagers will access employment opportunities in case factories are built in the village

or nearby.

- Employment opportunities will increase, though their qualities will depend on education levels.

Accommodation

- Mtwara is advancing economically and attracting

many people to move here, hence accommodation

services will definitely expand.

- Housing standards will go up.

- People will come to Mtwara to invest in hotels

and residential houses.

24

Table 1.7. Public view of the residents of Nanguruwe ward concerning future socio-economic changes in

Mtwara related to the development of the natural gas sub-sector Variables

Yes No I don't know Total

# # % # % # %

Population 39 76 1 2 11 22 51

Water services 23 46 12 24 15 30 50

Access to electricity 24 48 6 12 20 40 50

Education services 31 62 7 14 12 24 50

Diseases 34 67 3 6 14 27 51

Health services 28 56 12 24 10 20 50

Accommodation services 37 74 0 0 13 26 50

Employment 36 72 5 10 9 18 50

Businesses 43 86 3 6 4 8 50

Roads 37 74 3 6 10 20 50

Railway 6 12 3 6 41 82 50

Air transport 22 44 1 2 27 54 50

Port 25 50 1 2 24 48 50

Government management of revenues and expenditures

related to the natural gas sub-sector 26 53 4 8 19 39 49

Peace and security 32 64 9 18 9 18 50

Land use 32 64 6 12 12 24 50

Crops farming 37 74 2 4 11 22 50

Livestock keeping 28 56 6 12 16 32 50

Fishery 15 30 7 14 28 56 50

Culture 28 56 9 18 13 26 50

Environment 33 66 2 4 15 30 50

Changes will not occur:

I don’t know whether or not changes will occur:

Water services

- Water sources are very far from residential areas, and

development in water issues is almost inexistent.

- Water service will not suffice the demand that will come

with population increase caused by the gas economy.

Health services

- Lack of services will continue.

- Gas companies had promised to build a

dispensary, which remains in vain.

Railway infrastructure

- I am not sure, but I remain optimistic because of

our promising economic growth.

- We only hear about it, not really sure what to say.

- It is the government that removed the railway

system, I doubt it will reinstate it.

Port infrastructure

- I do not know if it will be there.

- I have heard rumors that the port is being

shifted to Bagamoyo.

Management of revenues and expenditures

- I am not aware of government issues.

- Only the government knows.

25

Table 1.8 captures the expectations of community members in Madimba relative to the social, economic and

environmental changes they expect will come in future from developments in the gas sub-sector. While they

least believe (10%) that there will be any developments in the railway transportation, most of them are

optimistic that numerous changes will occur. The areas they specify include a proliferation of diseases (86%),

population increase (80%), improvement in businesses (72%), and environmental changes (70%). Also, at least

half of the respondents foresee changes relative to land use (65%), employment (59%), access to electricity

(58%), and improved education services (57%). Meanwhile, 48% expect that their culture will be impacted by

developments caused by the natural gas industry.

About a third of the respondents are in denial that natural gas will cause changes as per the variables covered in

the study. Their denial is specifically directed towards water services (38%), health services (37%),

employment (31%), peace and security (30%), crops farming (30%), culture (28%), livestock keeping (26%),

and even access to electricity (24%).

Three quarters (76%) of the respondents are unaware of whatever changes that are likely to occur to the railway

transport in connection with developments in the natural gas industry. Others express similar views pertaining

to air transport (61%) and government management of revenues and expenditures (56%). They are also in

dilemma on whether or not fishery (46%) and port infrastructure (46%) will undergo any changes.

Table 1.8. Public view of Madimba ward residents concerning future socio-economic changes in Mtwara

related to the development of the natural gas sub-sector Variables

Yes No I don't know Total # # % # % # %

Population 40 80 3 6 7 14 50

Water services 15 30 19 38 16 32 50



Diseases 43 86 2 4 5 10 50

Health services 18 37 18 37 13 26 49


Employment 29 59 15 31 5 10 49

Businesses 36 72 8 16 6 12 50

Roads 19 38 14 28 17 34 50

Railway 5 10 7 14 38 76 50

Air transport 15 31 4 8 30 61 49

Port 20 40 7 14 23 46 50

Government management of revenues and

expenditures related to the natural gas sub-sector 13 26 9 18 28 56 50


Land use 32 65 5 10 12 25 49

Crops farming 23 46 15 30 12 24 50


Fishery 17 34 10 20 23 46 50

Culture 24 48 14 28 12 24 50

Environment 35 70 5 10 10 20 50

26

Changes will occur:


Access to electricity

- Attention will be paid to the needs of investors.

- Power is there but its supply is unstable.

Health services

- I doubt if medical supplies will be adequate.

- Health services continue to deteriorate despite

numerous promises.

Employment

- Those benefitting do not come from Msimbati, and most are

not from Mtwara.

- Investors will come with labour force from elsewhere.

Peace and security

- Peace and security will remain stable.

Crop farming

- No changes will occur because of poor agricultural

equipment being used.

- The land is so exhausted.

Culture

- Newcomers will follow our culture.

- Makonde culture is very stable, nothing

can shake it.

Diseases

- Gas extraction activities might contaminate the air with

poisonous chemicals and cause diseases.

- Some of the services, like optical care, will also be

available.

- Increase interaction among people will cause diseases.

Businesses

- Businesses will expand due to increased population

and employment opportunities.

-There will be demand for a wider variety of goods

and services, which will cause businesses to flourish.

Population

- Increased employment opportunities

will attract more people.

- Most women are impregnated by the

newcomers.

Environment

- The quality of the environment will

improve due to the better economy that we

anticipate.

- The land will be cracked due to explosive

activities while extracting the gas.

Culture

- There will be changes especially in clothing, particularly among women.

- Good traditions will prevail and the weak ones will wane or totally vanish.

27


Table 1.9 portrays the responses of Songosongo residents with respect to whether or not developments in the

natural gas industry will be linked with certain cross-cutting changes in Lindi. A striking 100% of the

respondents were absolutely positive that change will be inevitable in the development of businesses. The views

of a significant number of respondents also resonate with changes in diseases (97%) and population size (94%).

Such views also apply to environmental changes (89%) as well as changes related to accommodation services

(86%), employment (86%), land use (86%), culture (86%), and education services (85%). Around three-quarters

of the respondents are also of the view that changes will be pronounced in peace and security (77%), access to

electricity (74%), fishery industry (74%), water services (72%), and the port infrastructure (69%). While a half

of the respondents were of the view that changes will be inevitable in livestock keeping (52%) and air

transportation (51%), a good number of them also foresee changes in the management by the government of

revenues and expenditures related to the natural gas sub-sector (46%) as well as health services (43%) and road

infrastructure (43%).

A significant number of the residents pessimistic about such change related their responses specifically with

crop farming (71%), as nearly a half of them (49%) were of the same view with regards to railway

transportation. At least a third of them also cited their denial of change emanating from developments in the

natural gas sub-sector to the roads infrastructure (43%), health services (37%), and livestock keeping (34%).

Just about a quarter of them shared similar views in relation to air transportation (26%) and fishery industry

(23%).

Notably, while 34% of the respondents said they do not know what changes are likely to occur in the

management by the government of revenues and expenditures related to the natural gas sub-sector, nearly half

of them (49%) were of the same view regarding the railway infrastructure.


- I have never heard of the presence of

railway in the region.

- May be with the coming government,

and I have no clue how Mtwara corridor

is faring.

- Only the government knows.

Fishery

- I have no clue, though I fear that the fish will die of

poisonous sewerage.

- I don’t know because I’m left out.

Air transport

- I do not know if there will be air transport.

- Not to be much expected since only visitors will afford this

means of transport.

Management of revenues and

expenditures

- I don’t know if our government will

benefit.

- Government issues are a top secret.

- I‟m not familiar with the subject matter.

Port infrastructure

- I don’t know if it’ll be there.

- I don’t know if it’ll be improved.

28

Table 1.9. Public view of Songosongo ward residents concerning future socio-economic changes in Lindi

related to the development of the natural gas sub-sector

Variables - around Songosongo gas fields

Yes No I don't know Total #

# % # % # %

Population 33 94 0 0 2 6 35

Water services 25 72 4 11 6 17 35



Diseases 34 97 1 3 0 0 35

Health services 15 43 13 37 7 20 35


Employment 30 86 4 11 1 3 35

Businesses 34 100 0 0 0 0 34

Roads 15 43 15 43 5 14 35

Railway 1 3 17 49 17 49 35

Air transport 18 51 9 26 8 23 35

Port 24 69 6 17 5 14 35

Government management of revenues and

expenditures related to the natural gas sub-sector 16 46 7 20 12 34 35


Land use 30 86 5 14 0 0 35

Crops farming 9 26 25 71 1 3 35


Fishery 26 74 8 23 1 3 35

Culture 30 86 4 11 1 3 35

Environment 31 89 2 6 2 6 35

29

Changes will occur:



Businesses

- Will increase because of electricity. For

example, we are now able to store fish in

refrigerators.

- Will improve because of increased

population, coupled with increased demands

and capital.

- Will grow, apparently people are able to

take fish to the market in Dar es Salaam and

bring back clothes and other goods to sale

in the community.

Population

- Will increase because of industrial development

caused by availability of gas.

-People are coming over to look for employment,

hence increase in population.

Diseases

- Will increase because the water is contaminated

with chemicals, and we do not have enough health

workers. People usually die while en route to

hospitals.

- Newcomers will bring diseases like HIV/AIDS.

There will also be other communicable diseases.

- Poisonous chemicals being used for gas extraction

will affect the residents; also the fresh water we are

using is processed from the saline sea water that is

not good for health.

Environment

- There is water pollution, and fish breeding

grounds are being affected by explosive activities

associated with gas extraction. Also trees are

felled, which will cause a desert-like environment.

- Will improve because we have an environmental

committee.

- Investors in collaboration with TPDC are

clearing forests to establish gas factories; this will

leave us with a desert.

Land use

- People are building at a very fast rate, most

formerly forested areas now full of houses.

- More people will be forcefully removed from

their lands.

- They are removing sand for building

purposes hence leaving the land inhospitable

and useless for construction purposes.

Culture

- There will be changes because nowadays young

people do not show respect for elders.

- Traditional dances are coming to an end, and

gas investors are laying down the gas pipe in

areas where we used to perform traditional

rituals.

Crops farming

- Farming will remain small-scale, mostly

gardening.

- Most of the residents are fishermen not farmers.

- I haven’t really seen farming in Songosongo,

most of us are fishermen.

Roads

- Not easy to change because gas companies do

not find them to be a predicament.

- There are no plans to improve the roads; our

leaders are focusing on their personal

development.


- We currently don’t have one and I don’t know if it’ll be built in

future.

- I have never heard of the presence of railway in the region.

- We are an island, so it‟s not easy to think of a railway.

Management of revenues and

expenditures

- I don’t make a follow-up on this

matter.

30

3.1.7 Roads conditions

Respondents across the study regions were also asked to specify whether or not the road conditions allow them

to travel and transport goods and services comfortably throughout the year. As Figure 1.4 shows, almost two-

thirds (57%) of the respondents from Nanguruwe ward in Mtwara said the roads are good all year “even though

they are not in good standard.” The remaining 43%, however, offered an opposite opinion subject to “difficult

to pass during rain seasons, and are overused by the gas companies without repairing”; “having many potholes”;

“being so dusty during summer”; and “possibility of spending even two days on the road in the rain season.”

Figure 1.4. Experiences of roads conditions by respondents from Nanguruwe and Madimba wards in

Mtwara as well as Songosongo ward in Lindi

A very significant number (96%) of respondents from Madimba ward consider their roads to be in bad

condition, thereby limiting their travelling and transportation of goods and services throughout the year. They

relate their response to their various experiences, such as “difficult to pass in rain seasons”; “full of potholes,

making it difficult to pass even in summer”; “impossible to travel by car in rain season, we have to walk”;

“difficult to even travel on feet in the rain season because the road gets flooded with water”; and “vehicles get

stuck on the road during rain seasons, we might go for even two weeks without basic supplies.” Only 4%

consider the roads to be in good condition year round.

Songosongo respondents seem to be generally happy with their roads. To them, as evidenced by at least three-

quarter (76%) of the respondents, the road conditions warrant usage all around the year. However, the

remaining 24% complain against the condition of the roads. Examples of their complaints include: “the surface

is sandy, therefore the roads are more passable in rain seasons than in dry seasons”; “the roads are bad in both

dry and rain seasons”; and “we pass over rocky surfaces because we don‟t have paved roads.”

3.1.8 Perceived responsibilities of stakeholders in development efforts

Respondents were asked to share their perceptions on the roles that the government and natural gas companies

ought to play in order to bring about development as a result of the natural gas economy. They were also asked

to identify their own responsibilities in assisting the government to implement its roles. Below are their

responses.

29

22

Nanguruwe

Passable

year

round

Not

passable

year

round

2

48

Madimba

Passable

year

round

Not

passable

year

round

26

8

Songosongo

Passable

year

round

Not

passable

year

round

31

Perceived responsibilities of the government

A total of 41 people in Nanguruwe responded to this question. Most of them perceive the government as being

responsible for improving social services. They specifically expect that the government will provide them with

water, health centers and dispensaries, medical supplies, and improved schools as well as a sufficient number of

teachers. They also expect the government to properly manage the gas economy by ensuring that the life of its

citizens is improved (e.g., “ensure that the revenues from natural gas improve the livelihood of citizens”,

“provide supervision to ensure that natural gas brings about development”, “the government should act on

peoples‟ complaints related to compensation claims”, “the government should give us a special consideration

knowing that gas comes from our community”, etc.). They, as well, anticipate the government playing a leading

role in fostering infrastructural development by, particularly, upgrading the roads condition. A few of them

associated their expectations with employment (e.g., “priority should be given to Mtwara residents who are the

true custodians of the land” and “factories should be established in this community so that employment is

available”).

There was a total of 35 respondents from Madimba. Most of them perceived the government to be responsible

for provision of improved social services (specifically water, education, health, and taking care of the aged) in

addition to development of infrastructure (particularly roads and free access to electricity). They also expect the

government to ensure a proper management of the gas economy by, among other things, enforcing timely and

adequate compensation for the land given to investors, improving the livelihood of citizens, and making

investors accountable for their promises to the community members. The respondents are expecting the

government to also attract investors to their community and the region in order to facilitate availability of

employment opportunities and, at the same time, educate them on how to effectively utilize the various

opportunities embedded in the gas economy.

Most of the 32 respondents from Songosongo said they are also looking forward to receiving social services

from the government. They particularly expect the government to meet their demand for health services

(hospitals, dispensaries, health/labour equipment and ambulance boats, adequate health workers, and sufficient

medical supplies), improved water supplies, and better education services (including provision of more

teachers). They also demand improvements in infrastructure, particularly roads, port (i.e., more water vehicles

between Songosongo and Kivinje as well as further deepening of the port), housing (from thatch roofs to iron

sheets), and free access to electricity. Their other expectations resonate around issues like economic

empowerment (e.g., sustainable irrigation schemes, provision of financial loans and fishing gears to fishermen,

etc.), proper management of the gas economy (e.g., emphasizing transparency of revenues and expenditures,

fight corruption, and use the revenues to propel development), as well as creation of employment opportunities.

Perceived responsibilities of the gas companies

A total of 34 villagers from Nanguruwe shared what they perceive to be the responsibilities of the gas

companies relative to the development of their communities. They categorized their responses into three: (1)

provision of social services (particularly water and health care), (2) facilitation of employment (mainly to the

local residents, and ensure sufficient wages and salaries), and (3) development of infrastructure (particularly

roads). They also need the gas companies to honour their promises and improve relationships with the villagers

(“for three years now they have not implemented any of things we had agreed on for their CSR activities, they

have to honour our agreements and respect us”; and “they need to evaluate their relationship with the local

residents because they continue to destroy our farms without any compensation”).

A larger number of the villagers from Madimba ward (including 28 respondents) are expecting the natural gas

companies operating within their communities to also champion the provision of social services (i.e., health

care; education, including building schools and providing scholarships; and access to clean water). They also

32

expect the companies to prioritize their need for employment as well as improve the transport infrastructure,

particularly roads. Some also expect the gas companies to recognize them as stakeholders by engaging them in

their decision-making processes, as well as paying tax for community and national development.

A total of 33 villagers from Songosongo ward shared their views on the subject matter. A majority of them are

of the opinion that natural gas companies should foster the provision of social services (mainly closer access to

water sources; health care, particularly sufficient health centers, doctors and medical supplies; and schools).

They also expect the companies to empower the community members economically by, for example, supporting

women and youth groups with capital and capacity building, providing a water vehicle to support transportation,

providing a good quality fishing vessel, and donating fish processing plants to the community. Some of their

expectations are also focused on employment provision (especially to the local residents and Tanzanians at

large) and infrastructure development (particularly improving roads and the port).

Perceived responsibilities of the local community members

A total of 49 people from Nanguruwe ward responded by identifying their roles in helping the government to

implement its responsibilities in relation to augmenting government efforts by providing labour (e.g., in

building dispensaries and schools), protecting public resources (including the gas pipe) and providing

information to prevent crimes, as well as paying taxes. A good number of responses also indicated public

perception of the responsibility to present their queries to the government so that it acts accordingly. However, a

striking 33% of the respondents said they do not know what their related roles and responsibilities could be.

Only a few respondents said they bear no responsibility in helping the government to perform in its roles.

Madimba ward also had 49 respondents to the question. They largely regard working hard, reminding the

government of its responsibilities, offering security to development projects, and paying taxes as the main ways

in which they can complement government efforts. Interestingly, a whole 49% of the respondents do not know

what they should do to help the government in acting upon in its roles.

A majority (35) of villagers from Songosongo ward who offered their responses to the same question consider

themselves as being responsible for siding with the government in implementing its roles and responsibilities.

To this effect, they specify their roles as including supporting the government in its development initiatives as

required, pushing the government to implement its development agenda, protecting public resources (including

the gas infrastructure), and sharing information with the government. Notably, nearly a quarter (23%) of the

respondents admitted not knowing what their roles and responsibilities are in this regard.

3.1.9 Community access to information on gas-related activities from the government

Community members across the study regions were asked to explain the manner in which the government

provides them with information about the various activities and developments related to the exploration and

extraction of natural gas in their respective communities.

Nanguruwe had a total of 51 people responding to the question. While 43% of the respondents said they do not

get the information through the government, a large number of the remaining respondents are accessing the

information through their village government via meetings, public announcements (e.g., P. A. systems and

radio), and notice boards/posters.

To Madimba villagers, as revealed by the 49 respondents to the question, the major source of accessing the

information is through public meetings organized by their village government. The information is also shared

via public announcements (i.e., P.A systems, radio, TV and newspapers) and notice boards/posters. However,

almost a half (47%) of the respondents says the government does not share the information with them.

33

A total of 35 people from Songosongo ward responded to the question. They largely credit their village

government for pioneering the sharing of information by coordinating meetings with the village members. It

also carries out public announcements via loud speakers to the villagers and posting the information in various

public places. The villagers also access the information through the media sources like radio, TV and

newspapers. However, while at least one-third (37%) of the respondents complain of being denied access to the

information, a few say that not only does it take a lot of effort for the villagers to pressurize their leaders into

holding the meetings, they also consider the information shared to be inadequate.

3.1.10 Experience with compensation by community members

Another question sought to explore the experiences of the community members across the study regions with

compensation arrangements for those affected by the various activities and developments related to the

exploration and extraction of natural gas.

Figure 1.5 shows that more than two-thirds (69%) of the respondents from Nanguruwe expressed outright

dissatisfaction with their experience regarding compensation for the land taken from them at the expense of

investments in the natural gas industry. Examples of some of their complaints include: “natural gas companies

are destroying our farms without compensating us”; “all I hear is complaints against unsettled compensations”;

“compensation was timely issued in the first round, but it has been delayed in the second round and we suspect

it‟s because of corruption.” While about one-third (27%) of the respondents are unaware of what is going on in

this regard, only 4% of the respondents are satisfied with their experiences concerning the subject matter.

Figure 1.5. Experience with compensation for land as reported by respondents from Nanguruwe and

Madimba wards in Mtwara as well as Songosongo ward in Lindi

The situation is more or less similar for the respondents from Madimba, whereby 66% have negative

experiences with the compensation arrangements or procedures. They attribute their views to a number of

considerations, for example: “the compensation amount is very small subject to my experience with having one

of my coconut trees and three cashew nut trees cut down”; “every company attaches its own value, some pay

very low amounts”; “they had initially promised to pay us Tshs 1,750 per square meter but later on paid Tshs

80, and not all have been paid yet”; and “the local government pays less than instructed by the central

government.” While close to one-quarter (24%) of the respondents are unaware of what is going on in this

regard, only 10% of the respondents are satisfied with their experiences concerning payment of compensation.

2

35

14

Nanguruwe

Positive

experienceNegative

experienceI do not

know

5

33

12

Madimba

Positive

experienceNegative

experienceI do not

know

11

21

3

Songosongo

Positive

experience

Negative

experience

I do not

know

34

About two-thirds (60%) of the respondents from Songosongo expressed their utter dissatisfaction with their

experience regarding compensation for the land taken from them at the expense of investments in the natural

gas industry. They complain, for example, that “some cattle and coconut trees died because of poisonous

chemicals but they haven‟t been compensated for to-date”, “the compensation is inadequate”, “if you refuse the

compensation amount they still move you from your land by force”, “gas companies may decide that every

coconut tree should be compensated for at the rate of Tshs 40,000 but the government may provide Tshs 20,000

instead”, and “there hasn‟t been any compensation of recent, I think the one they are paying now is for 2008.”

While only 9% of the respondents are unaware of what is going on in this regard, approximately a third (31%)

of them are happy with their experiences concerning compensation arrangements and procedures.

3.1.11 Land-related conflicts

This section covers the responses or experiences of the communities relative to land use conflicts in connection

with natural gas activities as well as other general causes.

Land conflicts in relation to natural gas activities

The respondents were asked about whether or not land conflicts exist in their respective communities, being

fuelled by activities related to natural gas operations. As shown in Figure 1.6, nearly two-thirds (60%) of the

respondents from Nanguruwe ward said such conflicts are inexistent in their communities. However, while

20% of the respondents were not aware of the conflicts, the remaining 20% said they have either experienced or

witnessed such conflicts. Some of the explanations linked to the latter claim include: “investors do not

compensate for land in time and the compensation amount is meager”; “land is being grabbed from the citizens

and given to investors without compensation, and people do not have alternative land for their activities”;

“investors destroy crops without compensating the farmers, plus people are not compensated for land

grabbing”; and “my cashew nuts farm interfaces the land accommodating the Ntorya gas field and, therefore, I

am banned from cultivating a part of it.”

Figure 1.6. Land conflicts in relation to natural gas activities as reported by respondents from

Nanguruwe and Madimba wards in Mtwara as well as Songosongo ward in Lindi

A tug of war was apparent among the respondents from Madimba ward, where 46% said no land conflicts exist

in relation to investments in natural gas in their community as opposed to 44% who testified on existence of the

same. The latter group gave evidences saying, for example, that “the compensation is too little. We are

10

31

10

Nanguruwe

Conflicts

exist

Conflicts

do not

exist

I do not

know

22

23

5

Madimba

Conflicts

exist

Conflicts

do not

exist

I do not

know

1813

3

Songosongo

Conflicts

exist

Conflicts

do not

exist

I do not

know

35

supposed to get Tshs 1,950 per square meter but we are receiving Tshs 50 at most”; “investors destroy half

grown crops in our farms without providing us with compensation, thereby affecting us economically and

psychologically”; “a gas company has grabbed an open land belonging to the village and we do not know who

in the village government received the compensation”; and “there are many cases in court against investors for

trespassing on our farms without any sort of consideration.” At the same time, 10% of the respondents were

unaware of whether or not such conflicts prevail.

Over half (53%) of the respondents from Songosongo ward confirmed that activities linked to natural gas

operations are causing land use conflicts in their community. Some of the explanations given include: “TPDC

and the village claim ownership of the same piece of land, the conflict is not over yet”; “a huge tract of land

belonging to the village has been taken over by TPDC and compensation still lacks”; “there are problems of low

compensation and boundary conflicts”; “TPDC sold our land to investors without informing us”; “investors are

mining sand from legally prohibited fields, therefore the youth normally remonstrate using placards in an

attempt to stop them from destroying the environment”; “there is a conflict between TPDC and the village

government because TPDC took over land from the village in suspicious circumstances”; “conflict between

Namahyakata Shuleni and Namahyakata Barabarani villages over location of the Ntorya gas field”;“a conflict

developed after investors built a gas project that blocked the road that people were using”; and “roads have been

paved across our farms, we are not sure if they want to confiscate them or not.”However, while 38% of the

respondents established that land conflicts are inexistent in their community, the remaining 9% did not know

whether or not such conflicts exist.

An assortment of other land conflicts

The survey participants responded to another question on whether or not other land conflicts (not involving

natural gas operations) exist. As Figure 1.7 reveals, nearly three-quarters (74%) of the respondents from

Nanguruwe in Mtwara said such conflicts are inexistent. However, 18% of them said they exist. Some of the

evidence they provided included: “there are conflicts between pastoralists and farmers, whereby the former are

invading into farmers' lands”; and “general conflicts over land boundaries.” The remaining 8% were unsure on

whether or not conflicts exist.

Figure 1.7. An assortment of other land conflicts as reported by respondents from Nanguruwe and

Madimba wards in Mtwara as well as Songosongo ward in Lindi

9

38

4

Nanguruwe

Conflicts

exist

Conflicts

do not

exist

I do not

know

12

32

6

Madimba

Conflicts

exist

Conflicts

do not

exist

I do not

know

7

25

3

Songosongo

Conflicts

exist

Conflicts

do not

exist

I do not

know

36

Majority (64%) of the Madimba ward respondents also confirmed of the inexistence of land use conflicts

outside the realm of the investments in the natural gas industry. However, about a quarter (24%) of them said

conflicts prevail. They cited examples such as: “people are fighting over scarce land for farming”; “those whose

lands have been taken by gas companies are invading other peoples‟ pieces of land”; and “conflict between

villagers and the Marine Park Institute, whereby the latter is alluring the investors to circumvent the village

government on land occupancy issues.” The remaining 12% would not know whether or not land conflicts exist.

Similar for the respondents from Songosongo, most (71%) of them said land use conflicts do not exist as

opposed to 20% that said they exist. Testimonies given by those experiencing or witnessing the land use

conflicts encompass, for example: “there‟s a tendency of relatives grabbing land from orphans”; “conflict

among the villagers themselves, whereby those who gave their pieces of land to investors are being blamed for

doing so”; and “land has appreciated in value causing people to snatch it from one another.” The remaining 9%

were unaware of whether the conflicts exist in their community.

3.1.12 Environmental effects related to natural gas exploration and extraction activities

A question was asked to gather public opinion regarding the environmental consequences experienced during

the exploration and extraction of natural gas. The question on environmental consequences subject to

exploration activities was applicable to all the three study communities while that on the environmental impacts

of extractive activities was solely applicable to the Songosongo community of Lindi. This is because gas

extraction activities were yet to start at the Ntorya and Mnazi Bay gas fields of Mtwara.

Environmental effects experienced during the exploration activities

As shown in Figure 1.8, most of the respondents from Nanguruwe (63%) said that the local residents did not

experience negative environmental impacts during the natural gas exploration activities. As 14% of the

respondents were not familiar of any negative environmental impacts caused by natural gas exploration

activities, nearly a quarter (23%) of them reported on their experience and that of others with the negative

environmental consequences resulting from such activities. Some of their explanations included, for example,

“crops and trees were destroyed and the land was left with potholes” and “the road was left with potholes

because of explosions.”

Figure 1.8. Whether or not environmental effects were experienced during natural gas exploration

activities as reported by respondents from Nanguruwe and Madimba wards in Mtwara as well as


3111

7

Nanguruwe

No

negative

impacts

Negative

impacts

I do not

know

13

31

6

Madimba

No

negative

impactsNegative

impacts

I do not

know

9

20

6

Songosongo

No

negative

impacts

Negative

impacts

I do not

know

37

While 12% of the respondents from Madimba would not know of whether or not natural gas exploration

activities caused environmental impacts, and 26% reported no negative environmental consequences, a whole

62% reported that negative environmental impacts were experienced. Their explanations included, for example,

“chemicals are hurting our feet and pieces of broken glass are disposed of recklessly”, “our farms are now

having many potholes in them”, “some of the houses were cracked”, “crops were destroyed without

compensation”, “our farms are polluted with chemicals”, “chemicals are changing the color of the land to purely

white”, and “they used saline water that destroyed most of the crops on our farms.”

Experiences with the negative environmental consequences emanating from the natural gas exploration

activities in Songosongo were very obvious as reported by 57% of the respondents. They explained, for

example, that “coconut trees, cattle and fish died of chemical poison”, “many trees were cut down and the land

was left with dents”, “the cutting down of many trees has deprived us of firewood sources and we are now

dependent of charcoal for energy”, “some of the animals fell into the holes and died”, and “chemicals used to

soften rocks affected the fish breeding grounds and now the fish have moved far away.” Apparently, while 17%

of the respondents were unaware of whether or not their community was violated environmentally by the

natural gas exploration activities, about a quarter (26%) said no negative impacts were experienced.

Environmental effects experienced during the extraction activities

As mentioned above, this question was only relevant to the Songosongo community because, until the time this

study was being conducted, extractive activities were not active at the Ntorya and Mnazi Bay gas fields. Figure

1.9 shows that at least three-quarters (77%) of the respondents reported on the negative environmental impacts

being experienced by people in their community during the gas extraction phase. Examples of their supporting

explanations included: “flared gas contains poison that harms us”; “if employees of gas companies use

breathing masks because the air is polluted with toxic chemicals, how safe are we then given that we do not use

breathing masks?”; “gas companies litter their poisonous wastes”; “there once was an explosion of fire that

persisted for seven days, causing people to get burnt”; “community members and many employees of the gas

Figure 1.9. Whether or not environmental effects were experienced during natural gas extraction

activities as reported by respondents from Songosongo ward in Lindi

38

companies are now suffering from blood pressure because of explosive activities”; “crops and animals are being

affected”; “coconut trees do not breed as much as they used to”; “it is now very hot because of the processes

involved to extract the gas”; and “explosive activities are scaring the fish away.” While 8% reported on no

negative environmental impacts caused by the natural gas extraction activities in their community, a striking

15% were unaware of what is going on as far as their environment is concerned.

3.2 Survey Results of Interviews with Entrepreneurs

Part of the survey strategy was to interview entrepreneurs from Mtwara region. Specific study areas included

the Mtwara rural district, in which the gas wells are accommodated. The villages involved in the study included

Namahyakata Shuleni and Namahyakata Barabarani (accommodating the Ntorya gas fields) and Msimbati and

Mtandi villages (accommodating the Mnazi Bay gas fields). The survey was also conducted among the

entrepreneurs form Lindi region, specifically from Kilwa Masoko district and Songosongo village -where the

Songosongo gas fields are located. This section of the report presents the findings of the interviews. However,

for reporting purposes, the villages will be represented by the names of their respective wards (i.e., Nanguruwe,

Madimba, and Songosongo).

3.2.1 A demographic and education profile of the respondents

This section presents a profile of the respondents respective of their demographic and education characteristics.

Gender characteristics

The survey had been planned to engage 60 respondents from each district center as well as 15 from each

respective village. However, this was difficult to achieve because of the lack of time to complete interviews due

to delayed start caused by having to fulfill bureaucratic procedures (Mtwara rural and Kilwa Masoko districts),

lack of entrepreneurs amid the challenge of daylight and travel time (Nanguruwe ward), and inability to access

the entrepreneurs in their own village (Songosongo). In the end, as shown in Figure 1.10, the survey engaged

Figure 1.10. Gender of respondents from Mtwara rural district, Nanguruwe ward and Madimba ward

(in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

39

93% of respondents (57% males and 43% females) in Mtwara rural district, 87% of respondents (69% males

and 31% females) in Nanguruwe ward, as well as 67% of respondents (50% males and 50% females) in

Madimba ward in Mtwara region. From Lindi region, the survey engaged 68% of respondents (56% males and

44% females) in Kilwa Masoko district as well as 27% of respondents (100% males) in Songosongo ward.

Age characteristics

Table 1.10 shows that larger proportions of the respondents from Mtwara rural district came from the age

groups of 26-30 (21%) and 36-40 (18%). Those from Nanguruwe ward were dominated by the age group of 41-

45 (31%) as well as 26-30, 31-35 and 41-45 (20% each) from Madimba ward. On its side, respondents in Lindi

region largely belonged to the age groups of 26-30 (24%) and 36-40 (22%) in Kilwa Masoko district as well as

one respondent each for the groups of 26-30, 31-35, 36-40 and 41-45.

Table 1.10. Age of respondents from Mtwara rural district, Nanguruwe ward and Madimba ward (in

Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Years of age Mtwara Rural Nanguruwe Madimba Kilwa Masoko Songosongo

15 or less 0 0 0 0 0

16-20 3 0 1 2 0

21-25 4 2 0 4 0

26-30

2 2

1

31-35 6 2 2 6 1

36-40 2

1

1

41-45 8

2 5 1

46-50 8 0 0 2 0

51-55 1 0 1 1 0

56-60 3 0 0 1 0

61-65 1 1 1 1 0

65 and above 0 0 0 0 0

56 13 10 41 4

Levels of education

Table 1.11shows that a larger fraction of the respondents across the study regions (i.e., 48% in Mtwara rural

district, 84% in Nanguruwe ward, and 60% in Madimba ward in Mtwara, as well as 49% in Kilwa Masoko

district and 100% in Songosongo ward in Lindi) have primary school education. Meanwhile, secondary school

education seems to be largely achieved at district levels in both regions (32% in Mtwara Rural and 37% in

Kilwa Masoko), where some university/college education are also observed.

12

4

10 9

10

40

Table 1.11. Education levels of respondents from Mtwara rural district, Nanguruwe ward and Madimba

ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Education levels Mtwara Rural Nanguruwe Madimba Kilwa Masoko Songosongo

Not educated 3 1 2 3 0

Primary school

Secondary school

1 2

0

University/college 8 0 0 3 0

56 13 10 41 4

3.2.2 Business characteristics

Respondents identified several issues relative to the types of businesses they operate and ownership styles, the

sizes of their businesses in terms of capital volumes and number of employees, average daily revenues, as well

as the challenges they face in expanding their businesses. Their responses are covered below.

Business types and ownership

The respondents were asked about the types of businesses they partake in. Some of them, in both Mtwara and

Lindi, tend to have two to three types of businesses. However, for the sake of this report, the attention was more

focused on the businesses considered larger in the sense of generating more income and demanding more time

of operation. Table 1.12 shows that most of the people responding to the survey were actually the owners of

such businesses.

Table 1.12. Ownership of businesses among the respondents from Mtwara rural district, Nanguruwe

ward and Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Respondent location Owner Not owner Total

Frequency Percent Frequency Percent Frequency

Mtwara rural district 48 86 8 14 56

Nanguruwe 12 92 1 8 13

Madimba 9 90 1 10 10

Kilwa Masoko district 29 71 12 29 41

Songosongo 4 100 0 0 4

Of the 56 respondents from the Mtwara rural district, 21% had their businesses largely concentrated in

restaurants, followed by retail shops (14%) and the selling of ready-made clothes (13%). Other businesses

include hardware stores, tailoring, transportation (bodaboda), food (vegetable) stalls, etc. The 13 respondents

from Nanguruwe indicated their leading preference in selling food items (39%) and farming (15%). There is

also an electrician, as others are into pharmacy, retail shop, cosmetics shop, tailoring and selling fish. Also,

there were 10 respondents from Madimba, of whom, 40% operate retail shops as compared with 30% operating

restaurants. Others are dealing with bar/pub and fish-selling businesses.

According to the 41 respondents from Kilwa Masoko district, larger or dominant businesses include grocery

stores (12%), selling of ready-made clothes (10%) and retail shops (10%). An assortment of other businesses

includes restaurants, hardware stores, hair salons, stationery stores, mobile money transfers, gas filling station,

20

18

4

15

6 11 27

41

selling gas and gas tanks for cooking, pharmacy, etc. Only four respondents were available from Songosongo

for reasons explained in the methodology section above. Of whom, two people sell fish, one person operates a

restaurant, and another person supplies fresh water to a Chinese company.

Sizes of businesses

The sizes of the businesses were assessed based on capital volumes and number of employees. As shown in

Table 1.13, a large part (75%) of the reported businesses in Mtwara rural district were composed of a capital

volume of up to Tshs 5 million, and a substantial proportion of the others had capitals ranging from Tshs 5.1

million to Tshs 200 million. All the reported businesses in Nanguruwe and Madimba had business capitals not

exceeding Tshs 5 million.

Meanwhile, most of the businesses in Kilwa Masoko district were reported having capital volumes of up to Tshs

5 million (66%), followed by between Tshs 5.1 million and Tshs 200 million. The situation was similar for the

respondents from Songosongo, whereby their businesses are concentrated in the capital volumes of up to Tshs 5

million (50%) and within the range of Tshs 5.1 million and Tshs 200 million.

The sources of capital varied, though the most dominant source across the study regions was personal savings:

62% in Mtwara rural district, 62% in Nanguruwe, 80% in Madimba, 51% in Kilwa Masoko district, and 75% in

Songosongo. Other sources included family assistance, bank loans, a combination of personal savings and bank

loans, and sale of shares.

Table 1.13. Business capital volumes reported by the respondents from Mtwara rural district,


ward (in Lindi)

Capital volume in Tshs Mtwara rural

district Nanguruwe Madimba Kilwa Masoko

district Songosongo

# % # % # % # % # %

Up to 5 million 42 75 13 100 10 100 27 66 2 50

5.1 to 200 million 10 18 0 0 0 0 12 29 2 50

201 to 800 million 1 2 0 0 0 0 2 5 0 0

Above 800 million 0 0 0 0 0 0 0 0 0 0

I do not know 3 5 0 0 0 0 0 0 0 0

Total 56 100 13 100 10 100 41 100 4 100

As shown in Table 1.14, all the businesses of the rural-based respondents (from Nanguruwe and Madimba in

Mtwara as well as Songosongo in Lindi) typically employ one to four people. Their counterparts in urban areas

employ mainly the same range of people (89% in Mtwara rural district and 90% in Kilwa Masoko district), with

only a small fraction of the employees ranging between five and 50.

42

Table 1.14. Number of business employees reported by the respondents from Mtwara rural district,


ward (in Lindi)

Number of employees

Mtwara rural


district Songosongo

# % # % # % # % # %

Up to 4 50 89 13 100 12 100 37 90 4 100

Between 5 and 50 6 11 0 0 0 0 3 7 0 0

Between 51 and 100 0 0 0 0 0 0 0 0 0 0

Above 100 0 0 0 0 0 0 0 0 0 0

I do not know 0 0 0 0 0 0 1 3 0 0

Total 56 100 13 100 12 100 41 100 4 100

Average daily revenues

The respondents were also asked to report on the estimated average revenues they generate from their

businesses on a daily basis. The data collected was analysed to yield the following information:

● Mtwara rural district: Average is Tshs 69,298/- and the range is from Tshs 3,000 to 350,000/-. Businesses

making Tshs 10,000/- per day were reported by 8 out of 47 respondents (17%), being the mode.

● Nanguruwe ward: Average is Tshs 18,133/- and the range is from Tshs 2,000 to 50,000/-. Businesses

making Tshs 5,000/- per day were reported by 3 out of 13 respondents (23%), being the mode.

● Madimba ward: Average is Tshs 87,050/- and the range is from Tshs 3,000 to 300,000/-. Businesses making

Tshs 20,000/- per day were reported by 2 out of 10 respondents (20%), being the mode.

● Kilwa Masoko district: Average is Tshs 172,294/- and the range is from Tshs 4,000 to 1,500,000/-.

Businesses making Tshs 100,000/- per day were reported by 9 out of 34 respondents (27%), being the

mode.

● Songosongo village: The number of respondents was too small to justify computation of the average and

mode. However, the three respondents reported the range of business incomes of Tshs 10,000 to 400,000/-

per day.

Challenges facing expansion of businesses

The responding entrepreneurs identified numerous challenges constraining their abilities to expand their various

businesses types. These are related to problems of low financial capital, few customers, business losses,

ignorance of customers, high taxes, and formidable competition. The responses are summarized in Table 6.15,

categorizing the shared and varied perceptions of the responding entrepreneurs respective of their geographical

locations.

43

Table 1.15. Challenges to businesses enlargement as reported by the respondents from Mtwara rural


Songosongo ward (in Lindi)

Challenges facing enlargement of businesses

Mtwara

rural

district Nanguruwe Madimba

Kilwa

Masoko

district Songosongo

n=52 n=12 n=8 n=39 n=4

Insufficient financial capital √ √ √ √ √

Lack of customers/poor customers base √ √ √ √

Losses (theft and delinquency by

customers) √ √ √

Ignorance of customers √ √ √

High taxes √ √ √

Stiff business competition √ √

3.2.3 Energy situation

This section presents information from the study regions about the sources of energy for the respondents‟

businesses, how they assess the affordability of connection and maintenance charges for electricity, and their

experiences with power availability and its impact on business performance.

Sources of energy to businesses

Table 1.16 shows that urban-based businesses largely use electricity for their operations (i.e., 71% of the

respondents from Mtwara rural district and 79% of those from Kilwa Masoko district). While a good number of

businesses from Nanguruwe ward typically use kerosene (33%) and followed by solar (25%), their counterparts

in Madimba typically use electricity (40%) followed by firewood (30%). Meanwhile, only two responses were

available from Songosongo, all reporting on the use of electricity.

Table 1.16. Main sources of energy to businesses as reported by the respondents from Mtwara rural


Songosongo ward (in Lindi) Sources of

energy to

businesses

Mtwara rural


district Songosongo

# # # # #

Electricity 31 1 4 26 2

Charcoal 9 2 1 2 0

Firewood 0 2 3 4 0

Kerosene 0 4 0 0 0

Petrol 3 0 0 1 0

Gas 1 0 0 0 0

Solar 0 3 2 0 0

Total 44 12 10 33 2

44

Affordability of connection and maintenance charges for electricity

Respondents were also asked to share their experiences regarding their financial abilities to manage the costs

related to getting connected to electricity and managing regular service maintenance charges as far as their

businesses are concerned. The cost of connecting businesses to electricity supply was generally considered high

by the responding entrepreneurs. This included 45% in Mtwara rural district (16 out of 36) and 75% in

Madimba (3 out of 4), as well as 48% in Kilwa Masoko district (14 out of 29). Again, the respondents saying

the cost was average included 19% from Mtwara rural district as opposed to 8% saying it was insignificant,

25% from Madimba, and 17% from Kilwa Masoko district as opposed to 7% saying it was insignificant.

Meanwhile, 28% of the respondents from Mtwara rural district and 28% from Kilwa Masoko district could not

recall whether or not the cost of connecting to electricity was low, average or high. Notably, while there was no

response from Songosongo, the respondents from Nanguruwe could not relate to this question because they are

not connected to on-grid electricity.

The cost of maintaining power supply in terms of paying the stipulated regular fees was also considered to be

generally high. The relative responses came from Mtwara rural district (55% or 22 out of 40 respondents) and

Madimba (100% or 4 out of 4 respondents) in Mtwara, as well as Kilwa Masoko district (58% or 19 out of 33

respondents) in Lindi. Respondents saying the cost was average consisted of 38% from Mtwara rural district

and 30% from Kilwa Masoko district. As above, there was no response from Songosongo, and the respondents

from Nanguruwe ward found the question irrelevant because they are not connected to electricity.

Availability and significance of electricity to business performance

The entrepreneurs were also exposed to the question on the availability and significance of electricity to the

performance of their businesses. A total of 28 people from Mtwara rural district responded to the question on

power availability, whereby 26 (93%) of them expressed a high level of satisfaction (e.g., “it‟s not very erratic”,

and “it‟s cheaper compared to other regions”). Two respondents (7%), however, were unhappy with the trends

in power availability in relation to business operation (“sometimes TANESCO overbills us”, “it‟s uncertain”).

In terms of its significance to business operation and performance, a question that attracted 35 respondents, 97%

(35 respondents) cited electricity as being a positive factor for a good business performance. Some of their

responses included: “I use electricity for welding, light and air conditioning”; “some of the medicines require

cool temperature, which I can only achieve by using electricity”; “it cools beverages, which is what customers

want”; “I couldn‟t get tenants when I didn‟t have electricity, but now the story is different”; “without electricity

I cannot fix flat tires, which will cause me to lose my job”; and “the light from electricity allows me to operate

my business even at night.” However, one respondent begged to differ from the majority, saying that “my

colleagues, with whom I share the LUKU meter, delay payments and affect my business.”

This question did not receive any responses from Nanguruwe ward because electricity is not available.

Four entrepreneurs from Madimba ward responded to this question. All of them were unhappy with power

availability in their community relative to business operation and performance: “frequent erratic supply, every

day it goes off several times”; “power goes off every now and then leading to frequent decay of items in the

fridge/freezer”; “erratic supply is a norm”; and “power goes on and off frequently, which damages our electrical

appliances.” However, despite the frequent outages, they considered electricity to be a boosting factor for the

performance of their businesses (“it‟s critical for storage of perishables, like octopuses, and soft drinks”; “save

for the decay of goods due to frequent power outages, electricity is important for storing drinks and fish”; “the

light at night attracts customers to the shop”; and “we are able to sell chilled drinks.”

45

On the side of Lindi region, 18 entrepreneurs responded on the issue of power availability. The divide between

those who are happy (44% or 8 respondents) and unhappy (56% or 10 respondents) with its availability was not

remarkably significant. The former backed their experiences with explanations like: “power is frequently

available” and “power supply poles used to fall down and affect the availability of electricity, but this problem

has been corrected.” Their counterparts related their experiences with explanations like: “power availability is

not stable especially when it rains, whereby we may miss it for even three consecutive days” and “frequent

outages without prior warning from TANESCO.” Meanwhile, of the 32 entrepreneurs providing testimonies of

the significance of electricity to business operations and performance, 27 (84%) of them are much satisfied.

Some of them said that: “I keep my business running by selling chilled beverages”; “I‟m able to maintain

appropriate temperature for the medicines I‟m selling in my pharmacy, though the bills are high”; “lights

enhance the security of my business”; and “on-grid electricity is easy and convenient to use, but when we use

the generator customers are inconvenienced because it heats up and we have to turn it off from time to time.”

The remaining five (16%) respondents attribute electricity to the poor operation and performance of their

businesses (e.g., “I lose customers the moment power goes off”; “I pay more for power than my actual

consumption of the same”, and “I don‟t understand LUKU meters, sometimes you get more or less units of

power for the same amount of money”).

Only one entrepreneur from Songosongo responded on the availability of power, saying that “sometimes we

experience blackouts for a whole week.” On the significance of power for business operations and performance,

the two entrepreneurs responding said they use it for storing fish to be sold later on.

3.2.4 State of security

Figure 1.11reveals the experiences of the respondents regarding the state of security for their businesses in their

respective localities. At least three-quarters (77%) of entrepreneurs responding from Mtwara rural district

consider the environment within which they operate their businesses to be safe (e.g., “our business incomes too

meager to provoke theft”, “the police and the army are working together to enforce security”, “I have never had

anything stolen from me or heard of anything stolen from my neighbours”, etc.). Meanwhile, 18% of them also

say the state of safety for operating their businesses is only somehow satisfactory. Examples of such reasoning

include: “there is fear that our shops could be arsoned”, “thieves managed to break into my shop despite having

a security guard”, and “there are some theft tendencies, though security has been improved.” Finally, 5% of the

respondents consider their communities unsafe as far as their businesses are concerned (e.g., “motorcycles are

sometimes stolen” and “community members sometimes protest against gas leaving Mtwara, which causes

havoc and forces me to close the shop”).

The responses of the entrepreneurs from Nanguruwe were nearly equally proportioned. Thirty-one percent felt

that their businesses are operating in a rather safe environment (e.g., “there‟s no theft or any sort of criminal

events” and “I have a watchman guarding my shop”), and 38% of them also say the state of safety is only

somehow satisfactory (e.g., “population increase scares me, some people could resort to theft practices”;

“thieves steal cashew nuts from my farm at night”, and “thieves broke into my shop a while ago”). The

remaining 31% consider their communities unsafe as far as their businesses are concerned (e.g., “because wild

pigs eat crops on my farm and some people steal spanners from the garage” and “because I don‟t have a security

guard and my neighbour was once a victim of theft”).

Most of the entrepreneurs (90%) responding in Madimba ward considered the state of security for the operation

and performance of their businesses to be convincingly stable (e.g., “we are all bound together by very strong

ties in our community, we even lend each other money - even Tshs 30 million–on verbal agreements only” and

“this village accommodates very peaceful and safe people”). The remaining 10% say the sate of security is

somehow stable (i.e., “I have experienced three break-and-enterings to-date”).

46

Figure 1.11. State of security for businesses as reported by the respondents from Mtwara rural district,


ward (in Lindi)

On the part of Lindi region, most (76%) of the responding entrepreneurs from Kilwa Masoko district regard the

state of security in their community to be stable as far as their business operations and performances are

concerned (e.g., “the locals are very religious so theft and other crimes are inexistent”, “I have security guards

for my business”, and “the government and police force are doing a great job maintaining security”). Only 19%

say their businesses are operating in a somehow safe environment because “a few criminal events prevail”, with

the remaining 5% saying the business environment is not safe because “delinquency by customers is a rampant

phenomenon.”

The responses from Songosongo ward were divided into those saying the business environment is safe (75% -

“not bad”) and not safe (25% - “theft prevails”).

3.2.5 Roads condition and significance to operation and performance of businesses

The responding entrepreneurs were also asked to state whether or not the roads conditions allow them to travel

and transport goods and services comfortably throughout the year.

As Figure 1.12 shows, 39% of the respondents from Mtwara rural district said the roads are passable year round

(e.g., “we now travel only for a few hours between Dar es Salaam and Mtwara, unlike in the past whereby it

took the whole day”; “they are passable, but many of them are not tarmac roads”; “it‟s very passable nowadays

even when it rains”; and “I get my goods in time”). Majority (61%) of the respondents were opposed to this

observation (e.g., “the roads are impassable during rain seasons, people get stranded on the road for even five

days”; “the roads within Mtwara are good, but not the ones entering Mtwara”; and “we are heavily challenged

to transport food items from the interior rural areas during rain seasons”).

In Nanguruwe ward, only 15% of the responding entrepreneurs expressed their satisfaction with the roads

condition though they confessed facing several challenges during rain seasons. The remaining 85% said the

roads are not passable year round: “the roads are in poor condition year round”, “the roads are full of potholes

making it challenging to ride a bicycle”, and “sometimes I fail to replace goods in the shop because the roads

hinder travelling.”

47

Figure 1.12. Condition of roads as reported by the respondents from Mtwara rural district, Nanguruwe

ward and Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

All the 10 respondents from Madimba ward expressed their dissatisfaction with the roads conditions for

travelling and transporting goods and services throughout the year. Some of their explanations included: “our

roads are very poor in all years and seasons, it's common for vehicles to take over a day to get to this village”;

“the roads are very bad throughout the year, most of the times vehicles are just parked due to breakdowns

caused by the poor roads condition”; “the roads are very bad at all times and add up to the cost of transportation

as well as wastage of time on travelling”; and “the roads are bad throughout the year, much worse in rain

seasons.”

A number of responses were also collected from the respondents in Lindi region. In Kilwa Masoko district, only

15% of the responding entrepreneurs said they use the road comfortably all through the year (e.g., “the roads are

passable in all seasons of the year”). The remaining 85% highly differed (“the roads are difficult to pass during

the rain seasons, especially from January to May”; “the roads from Kilwa to the villages are in bad condition”;

and “the roads are really bad in rain seasons, which delays the transportation of goods for two to three days and

compromises safety of the goods and those transporting them”).

Only four responses were recorded from among the entrepreneurs in Songosongo ward. Of them, 25% regarded

the roads as passable year round. The remaining other 75% had an opposing opinion (i.e., “we chiefly travel

over the ocean, which gets really stormy from May to July thereby forcing us to relieve the vessels from too

much weight by offloading some of our goods into the ocean”, “I cannot operate the business in May and June

because the ocean gets very stormy”, and “the roads are difficult to utilize in rain seasons”).

3.2.6 Perceived responsibilities of entrepreneurs in development efforts

The responding entrepreneurs were asked to share their perceptions on the roles that the government and natural

gas companies ought to play in order to bolster business development as a result of the natural gas economy.

They were also asked to identify their own responsibilities in assisting the government to implement its roles.

Below are their responses.

48

Perceived responsibilities of the government

A number of responses were given in relation to the perceptions (or expectations rather) of the entrepreneurs

regarding the roles of the government in facilitating the growth and development of their businesses. The

responses are summarized in Table 1.17, which categorizes the shared and varied perceptions of the responding

entrepreneurs respective of their geographical locations.

Table 1.17. Perceived responsibilities of the government in facilitating the growth and development of

businesses as reported by the respondents Mtwara rural district, Nanguruwe ward and Madimba ward

(in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Perceived government responsibilities

Mtwara

rural


Kilwa

Masoko

district Songosongo

n=50 n=12 n=8 n=39 n=4 Boost capital (including provision of

low interest loans, subsidies and

equipment) √ √ √ √ √

Improve infrastructure (e.g., better

roads and lower cost of electricity) √ √ √ √ √

Improve social services (to attract and

retain newcomers/customers) √ √

√ √

Attract investors and support them

(without red-tapism and corruption) to

employ more people and boost money

circulation for the marketability of our

goods and services

√ √ √ √

Revise tax and licensing policies and

procedures (i.e., reduce taxes and levies

as well as license processing and

renewal fees)

√ √ √ √

Allocate specific business areas and

build business parks for lease √ √

Enhance safety for business activities √

Provide education on entrepreneurship √ Help with identifying market

opportunities √

Control inflation √ √

Perceived responsibilities of the gas companies

The responding entrepreneurs also shared their perceptions of the roles of the natural gas companies in

facilitating the growth and development of their businesses. Their responses are summarized in Table 1.18,

which categorizes the shared and varied perceptions of the responding entrepreneurs respective of their

geographical locations.

49

Table 1.18. Perceived responsibilities of the natural gas companies in facilitating the growth and

development of businesses as reported by the respondents from Mtwara rural district, Nanguruwe ward

and Madimba ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Perceived responsibilities of the

natural gas companies

Mtwara

rural


Kilwa

Masoko

district Songosongo

n=39 n=13 n=4 n=34 n=3 Improve social services (to attract and

retain newcomers/customers) √ √ √ √ √

Improve infrastructure (e.g., better

roads as well as lower cost of

electricity) √ √ √ √ √

Assist the government in providing

education on entrepreneurship, business

loans and capital equipment √ √ √ √ √

Establish factories in the region to

bolster money circulation and support

businesses √ √ √

Become a market opportunity for our

goods and services, including

prioritizing us in tender processes √ √

Be honest and loyal to the government

regarding revenues and agreements √

√

Educate people on the importance of

natural gas √

√

Build a business complex for lease (to

make our business activities well

organized) √

Perceived responsibilities of the entrepreneurs

A number of responses were also shared by the entrepreneurs in each study region and locality on the

perception of their own roles in assisting the government to deliver its responsibilities relative to facilitating the

growth and development of their businesses. The responses are summarized in Table 1.19 that categorizes the

shared and varied perceptions of the responding entrepreneurs respective of their geographical locations.

50

Table 1.19. Perceived responsibilities of the entrepreneurs in facilitating the growth and development of

businesses as reported by the respondents from Mtwara rural district, Nanguruwe ward and Madimba

ward (in Mtwara) as well as Kilwa Masoko district and Songosongo ward (in Lindi)

Perceived responsibilities of the

entrepreneurs

Mtwara

rural


Kilwa

Masoko

district Songosongo

n=15 n=8 n=4 n=20 n=3

Protect public properties (including the gas

infrastructure) and revealing crimes √ √ √ √ √

Pay taxes in time √ √ √ √

Advise (complain to) the government so

that it is informed of on-going challenges √ √ √ √

Be a peace loving citizen √ √ √

Protect the environment √ √

Send children to school so they can serve

the government in future √ √

Work hard for personal development and

that of the nation at large √

√

Adhere to cost-sharing arrangements while

accessing social services √

3.3 Perspectives from the Regional and Local Government Authorities

As explained in the methodology section, focus group discussions were conducted in Mtwara and Lindi regions

bringing together various officials from the local and regional/central governments. These officials were guided

in separate interactive sessions to share information about different issues related to developments in the natural

gas industry within their regions. The moderator guided the participants through a series of questions that

captured their perspectives on citizen and local government involvement (or inclusion of the two by the central

government) in various decision-making processes related to the natural gas sub-sector. They were also engaged

in discussing issues on the management of public expectations by the local and central governments. Other

issues discussed were on the management of revenues and expenditures related to the gas sub-sector, efforts to

ensure sustained development efforts after the natural gas is exhausted, and land use conflicts. Participants also

discussed about the social and environmental effects of natural gas operations as well as preparedness of the

residents to harness the assorted entrepreneurship opportunities being stimulated by the natural gas industry.

The proceedings of these discussions are covered in this section.

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3.3.1 Mtwara region

This section reports on the perspectives of the government officials of the Mtwara district council as well as

those of the Mtwara regional government. The corresponding questions are included.

a. Local government authority of the Mtwara district council

➢ Citizen involvement:

What plans and strategies are there to ensure local residents benefit from the natural gas projects?

- There are plans to ensure that Mtwara residents benefit from the natural gas endowment. One of the plans at

district council level is to improve the delivery of our services for the benefit of the Mtwara residents as

well as to attract investors. For example, we are currently surveying the land to attract investments in

factories, hotels, etc. This conforms to our joint master plan between the Mtwara municipality and Mtwara

district council. There is also an increasing demand for land in areas surrounding the municipality, which

has led to a resolution to incorporate six surrounding wards into planning areas. They include Naumbu,

Mbawala, Mayanga, Ziwani, Nanguruwe and Msanga Mkuu. Legally, these areas used to be village lands.

The responsible ministry declared these lands in the Government Gazette no. 404 of November 8, 2013 to

be planning areas. A master plan that incorporates these wards is currently being prepared.

- The district council also seeks guidance and assistance from the central government where the need to do so

arises.

How are the local residents involved in deciding and preparing these plans and strategies?

- Involving the citizens in planning is still a challenge. For example, they were involved in preparing the

master plan but not in the initial stages of investments in the natural gas sub-sector. Later on they started to

get involved through, for example, public workshops and representation of their leaders who then provide

them with feedback. This involvement is championed by the government. However, some members of the

public are causing challenges to this approach by mobilizing their colleagues to continue with protesting.

We continue to push for public awareness by involving the religious leaders through MEM who, eventually,

pass on the knowledge at their various congregations. However, the government does not make a follow up

if the religious leaders are relaying the awareness messages. This is because they have just been educated

and some time is still needed before the follow up begins. Also, following the high level of illiteracy in

Mtwara, we are prioritizing on providing basic education to the residents as this is part of the reason why

they are protesting.

What plans and strategies exist to ensure that local residents from the region are enabled to benefit from

employment opportunities available within the natural gas sub-sector?

- A resolution by the regional administration is that priority to employment should be given to Mtwara

residents. However, this fails because of the lack of skills among the residents though TPDC is working

hard to rectify this gap by sending the people for training at VETA and other institutions. But normally,

before advertising any employment opportunity, the village executive officers are instructed to mobilize

community members in their wards who would be interested in the vacancies.

- But there are complaints by the natives that they are underpaid. In fact, the government does not manage

this situation very well. For example, there are employees at the currently-under-construction cement

factory (famously known as Dangote) who do not have employment contracts. They are vulnerable in many

52

ways, such as the possibility of being laid off at any time and they are lowly paid despite working risky jobs

(e.g., burning disposed chemical substances at Tshs 8,000/- per day).

➢ Local government involvement:

How is the local government involved by the central government in making decisions and implementing

decisions related to the natural gas sub-sector?

- The local government authority works closely with the central government, especially in terms of searching

for various investors. However, for the most part, the local government authority only implements what has

been decided by the central government (e.g., “there lacked knowledge among us on the laying down of the

gas pipe, and later on when the public protested with violence we were told to also work on managing the

situation”). The local government is normally involved at the implementation stage only, though not fully,

and not at the decision making stage, which is considerably wrong. Being left out at the decision making

stage also makes the local government officials poorly informed of what is really going on in the sub-sector.

Consequently, this obstructs local peoples‟ awareness and knowledge of what is transpiring in the sub-

sector relative to their communities as far as the implementation of these decisions is concerned.

To what extent is this involvement sufficient and what should be done, just in case, to improve it?

- Local government authorities work more closely with the people at the grassroots level than the central

government does. Therefore, the central government should always involve the local governments in any

decision or implementation it considers in order for them to be aware and prepared to manage whatever

consequences that may result from such decisions or implementations.

➢ Management of public expectations:

How is the local government prepared to manage public expectations for immediate gains in light of the fact that

investment being carried out by natural gas companies will not award them with profits in a speedy manner?

- The central government could have been in a better position to empower the local government if the latter

was involved right from the very initial stages of planning and decision making. As such, the lack of

knowledge on the plans and strategies of the central government on the side of the local government

authorities challenges its ability to manage public pressure relative to the immediate expectations of people.

It is typical for community members to suspect their local government leaders of betraying them.

➢ Management of revenues and expenditures:

How is the local government prepared to manage the revenues emanating from the natural gas sub-sector to

augment its fiscal health and provide services to citizens in a sustainable manner?

- Clarity on royalties at the district council level is vague. Currently, the district council receives Tshs 4

million every quarter, which is a very small amount. However, this is because production activities are not

functional yet. Also, the service levy tends to be paid where the gas companies are headquartered (i.e.,

Kinondoni district in Dar es Salaam). This is changing slowly, whereby some of the companies are now

paying the service levies to the district council. It is important to note that some of the companies are

refusing to abide by this decision because of legal misunderstandings.

53

Are the revenues originating from the natural gas sub-sector being made transparent to the general public? Are

the related expenditures being made transparent to the general public? How is the transparency of revenues and

expenditures ensured? If transparency is lacking, then what is the cause?

- Overall, revenues are usually open to public knowledge and information. This begins at the budget

preparation stages, which reveals the sources of revenues and corresponding expenditures. Thereafter the

central committee of the district council meets to discuss and endorse the budget, a stage at which the public

is invited and elaborations concerning the revenues are given. This stage is then followed by a meeting at

the community level, and the information is shared with the public.

- Though revenues from the gas industry are not yet being generated (save for the loyalties and service

levies), public education is critical to avoid chaos in future. Service levies are publicly reported based on

the company that pays and where the money has been paid.

- The central government is preparing an initiative to ensure transparency regarding revenues from the gas

sub-sector.

- All in all, it‟s critical for the local residents to be educated and made aware of the issues on revenues from

the sub-sector to make it easier for them to understand when the revenues start flowing in.

➢ Sustained development efforts:

How is the local government ensuring sustainability of the benefits derived from the gas development within the

life cycle of the particular gas development scheme and afterwards?

- Preparations for this scenario (exhaustion of natural gas) were not accommodated by the local government.

Hence, the question is an education. Plus the gas will be exhausted in around a hundred years from the time

the extraction begins, which is not a viable time frame within which the local government makes its plans.

- It is important, however, for the local residents and the government to honor and sustain traditional

economic activities like cashew nuts farming.

➢ Land use conflicts:

What is the history of land use conflicts in the region, district and communities?

- Normal land use conflicts exist, mainly those related to boundaries between one village and another

following the creation of new villages from time to time.

Have there been land use conflicts in areas where natural gas has been discovered?

- There have not been any conflicts with respect to land requirements for natural gas investments because

procedures are well adhered to.

Have there been land use conflicts in areas where the natural gas infrastructure has been established?

- There have not been any conflicts because people were adequately compensated for the pieces of land that

were dispossessed from them.

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What procedures exist to guide the compensation requirements for the people affected by gas exploration and

extraction activities? What are the challenges associated with these procedures? What is the public opinion

concerning these procedures?

- Awareness on the issue is a major procedure, and it is a constant activity. The entry point is just before any

investment activity is undertaken. Compensation covers property on land (if any), the land itself as well as

existing crops. Compensation for land depends on the value of the land itself, which is determined by the

market relative to the location concerned. Also, there is a fixed schedule for compensation of crops on the

land (e.g., Tshs 240,000/- for a full grown coconut tree).

- The challenge is that the government through the Ministry of Lands, Housing and Human Settlements

determines the compensation rates but some of the gas companies may provide a higher compensation. This

causes conflicts between the local residents, gas companies and the government because the residents tend

to prefer the rates being offered by some of the gas companies to those determined by the government.

- Also, the companies sign contracts with the central government without involving the local government

authorities. So they compensate at higher rates to simplify and expedite their operations, and this makes it

difficult for other companies that want to use the rates determined by the central government. This raises

public suspicion that the local government officials have received kick backs to approve the low rates being

paid by these other companies.

➢ Social and environmental impacts:

Have there been any social or environmental effects caused by natural gas exploration and extraction activities?

- The impacts are minor because most of the exploration is being conducted in the deep sea, and the public is

usually informed before such explorations take place. But there was a time when BG Tanzania explored

(with explosions) without informing the public and caused destruction to fishing gear, which they fully

compensated for. The companies also inform the public of explorations being done on the land, and there

have been no impacts as evidenced by the absence of corresponding complaints.

- Local government officials admit the lack of knowledge concerning the environmental impacts because

they are not experts.

➢ Seizing the opportunity for entrepreneurship development:

How are the local entrepreneurs prepared to benefit from increased demand for goods and services caused by the

prospective economic and population growth linked to investments in natural gas projects within the region?

- Most of the entrepreneurs, especially the native Mtwara residents, are not prepared for the potential

opportunities. This is because their understanding of such opportunities is limited. However, the

government is allocating special land, especially for the native Mtwara entrepreneurs, for business

activities.

- However, the local government has not undertaken any specific business research to identify the potential

business opportunities and their optimal magnitudes relative to required capacities. This may limit the

building of required capacities as well as addressing other facilitative factors, such as provision of loans.

55

b. Mtwara regional government


What plans and strategies are there to ensure local residents benefit from the natural gas projects? What plans

and strategies exist to ensure that local residents from the region are enabled to benefit from employment

opportunities available within the natural gas sub-sector?

- Gas exploration and extraction activities do not, by themselves, employ many people. Employment

opportunities will be abundantly available in industries and industrial activities that use gas. For example,

the cement factory under construction (famously known as Dangote) is expected to generate 3,000 direct

employment opportunities and 2,000 indirect employment opportunities, and about 75% of the total

employees are expected to be Mtwara residents. As such, employment opportunities will be made available

through various investments being catalyzed by the discovery of gas in Mtwara. Also, the cement factory

(Dangote) will need at least 300 lorry trucks (let alone ships) transporting cement away from Mtwara every

day, which will provoke construction of hotels and, hence, generate employment opportunities. However,

these developments may fuel the outbreak of diseases subject to increased population size and movements.

Also, the roads may not be capable of handling increased movements of heavy trucks without sustaining

frequent damages.

- To address this challenge, the Mtwara port is being improved. The port area has been expanded to 26,000

hectares. A Germany company, for one, named Helms & Proman, wants to produce at least 200,000 tons of

fertilizers per day, hence requiring a big docking area for transportation purposes. Also, the Economic

Processing Zone and Special Economic Zone are already developing the port area.

- There are plans to also improve the airport.

- Railway transportation is also being improved to enable transportation of coal from Mchuchuma and iron

from Liganga to the Mtwara port. Procurement for railways is ongoing and the Railway Assets Holding

Company (RAHCO) is in charge of the construction work. A total of 5,000 hectares have been applied for

railway base construction.

- Also, charges for connection of electricity to households along or around the areas where the gas pipe is laid

will be lowered.

- A referral hospital is being constructed in Mitengo ward in Mtwara Mikindani municipal council. The land

has already been cleared and fenced. The hospital is being constructed by the government through the

Ministry of Health. Also, the National Health Insurance Fund (NHIF) is planning on constructing a

fashionable health centre in Mtwara.

- A survey has been completed to supply water from Ruvuma River to meet the growing demand for water in

the region, with a particular consideration to the developments that will be propelled by the natural gas

economy in the region. A technical assessment of the requirements and quantities for current and

prospective industrial and domestic uses has already been carried out.


- People are involved through their local leaders who engage them in dialogues and discussions through

village meetings, stakeholders meetings and various political forums. They are also informed on

compensation issues as well as the long term benefits they should expect to accrue from such developments.

This understanding makes it easier for the local residents to ensure security of the infrastructure, including

the electricity infrastructure.

56

- Community members are also involved through their representatives who attend the Regional Consultative

Committee (RCC) and District Consultative Committee (DCC) meetings, which are also attended by people

from the media.


How is the local government involved by the central government in making and implementing decisions related

to the natural gas sub-sector?

- The local government is involved through participation in joint meetings with the regional government, as

well as the RCC and DCC meetings.


- The regional government is not aware if this kind of involvement of the local government may have certain

deficiencies. The local government authority is expected to provide feedback, if any. However, the regional

government, through the district commissioner‟s office, circulates invitation letters to all local government

authorities for them to share their agendas of interest for discussion at the RCC and Regional Road Board

meetings.


How is the regional government prepared to manage the revenues emanating from the natural gas sub-sector to


- Royalties are supposed to be paid to the respective local government authorities, and not to the regional

government. However, the royalties are not being generated because gas production is not functional yet.

The local government authorities are guided by the country laws and policies to plan and budget for

development activities irrespective of the revenue sources. The regional government plays an advisory and

supervisory role as well as inspects on a quarterly basis the development projects being undertaken by the

local government authorities.



expenditures ensured? If transparency is lacking, then what is the cause?

- No revenues are currently being generated from the sub-sector because gas production is not functional yet.

However, as a standard government practice, records of revenues and expenditures are usually posted on

public notice boards of the local government authorities. Also, local communities are informed through

meetings within their respective wards and villages. Transparency is not a problem at the districts level, but

at the villages level. Some of the village government offices do not share reports of their revenues and

expenditures for public knowledge and scrutiny. This angers the people, causing them to repudiate the call

to attend village meetings and refuse their leaders.

57


How is the regional government ensuring sustainability of the benefits derived from the gas development within

the life cycle of the particular gas development scheme and afterwards?

- The regional and district governments continue to emphasize and encourage cultivation of cashew nuts as

well as other crops.

- The regional government has also started the Mtwara Development Cooperation (MDC) to develop big

projects for the development of the region. This is in sync with the Mtwara Development Fund (MDF)

whose goal is to solicit funding to support implementation of the projects under MDC. The model of this

initiative originates from the Kilimanjaro Uchumi Company in Kilimanjaro region. All district councils will

be share holders of MDC, an initiative that is fully supported by the local and regional governments as well

as all members of the parliament from the region.



- There is a problem of double allocation of land by land officials in the local government authority being

caused chiefly by corrupt tendencies, which causes land conflicts. But sometimes the land officers lack an

updated database and facilitating technology, thereby mistakenly allocating same land to multiple people.

- There are also conflicts between one village and another. For example in Masasi and Nanyumbu districts

over a scramble for gold, whereby villagers tended to move boundary marks to include the resource within

the confines of their villages. This caused a tug of war between the two districts since the villages are across

each district border. However, these problems are easy to solve because villages are created on the basis of

country laws.

- Some land conflicts are caused by forceful repossession of land. For example, there was a livestock farm

called Sajan that local residents occupied by force, claiming that it is an inheritance from their ancestors.

However, the local residents were allocated to another land and left the farm to the rightful owner.

- Another cause of land conflicts is embedded in the upgrading or modernization of settlements from a

squatter status. This began in 2009. Magomeni area was made a case study for this initiative. This has led to

some people being given plots of land that encroach portions of other peoples‟ land areas.

- All in all, the government is working hard to end the land conflicts in the region, mostly by ensuring that

every responsible official abides to the ethics of good governance. The government also continues to

educate the people about land issues, improve land use plans for each village, revive the boundaries

between villages, and provide land ownership deeds in a speedy and continuous manner.


- Most of the land conflicts in Mtwara region stem from various investment projects, including those related

to natural gas. Many residents, especially those from Msanga Mkuu ward, are complaining that they were

not adequately compensated for the land areas that were repossessed from them. However, these complaints

tend to come in late and are usually invalid because some of the natural gas companies award higher

compensations to smooth and hasten their activities, which makes those who were compensated earlier at

lower rates (although legally established) feel that they were swindled. The challenge is caused by peoples‟

lack of knowledge on legal procedures affecting compensation issues and their opportunistic or greedy

mindset.

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- There are no conflicts that the government is aware of. All people affected by the project were compensated

in full.



- There are no social or environmental effects because exploration requires a very small area of land on the

earth‟s surface while the actual explosion takes place very deep. One may not even feel the vibrations

happening under the surface. Also, seismic activities are conducted very far away from peoples‟ residences

and in the deep sea.

- However, incineration and disposal of the waste from the exploration activities are taking place in

residential areas and are not properly managed, thereby causing pollution an affecting the ecosystem.




- Most of the current middle- and large-scale entrepreneurs are from outside Mtwara. For example, requests

for land for big projects like schools, hotels, real estate, supermarkets, and production and processing of

vegetables are being submitted by non-Mtwara residents. Therefore, this question provokes the regional

government to increase its efforts in educating the native entrepreneurs to partake in this development

opportunity. But the residents are also not self-driven to effectively embark on development activities with

prospects of the growing market being fuelled by the natural gas economy. For example, there are large

portions of irrigation schemes remaining idle because people are not utilizing them. Also, entrepreneurs

motivated to utilize the development potential are constrained by the lack of capital, information on where

capital can be obtained, low skills of production, and poor standards of products.

3.3.2 Lindi region

This section covers the perspectives of the local government authority of the Kilwa Masoko District Council as

well as those of the Lindi regional government. The corresponding questions are also included.

a. Local government authority of Kilwa Masoko district





- Revenues sourced from the gas sub-sector are directly included in the various development projects funds.

- The district council expects that the revenues from the gas sub-sector, including tax collections from the

natural gas companies, will contribute to development projects such as education, roads, and health. The

revenues will also facilitate environmental conservation programs in areas affected by the gas

infrastructure.

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- A 20% service levy is given to the villages within the districts in which the gas infrastructure is laid.

- Initially, Kilwa district generated power from a fuel-run generator. But now, after gas discovery, people are

accessing a very stable and sufficient power supply from the gas. Those in Songosongo are accessing it for

free.

- PanAfrican Energy has built a dispensary named Nangurukuru on request by the district council. It also

installed solar power and computers in all the secondary schools within the district.

- The government informs the people to get ready to benefit from the gas economy through direct

employment and prepares an enabling business environment (e.g., to enable poultry and horticulture).

- The government also calls on the people to be innovative so as to benefit from investments in the gas

industry as well as educating farmers on applying fertilizers along with modern farming strategies in order

to increase the quality and quantity of their products.

- PanAfrica sponsors 10 students from Songosongo village each year to attend secondary school education at

Makongo Secondary School in Dar es Salaam. This empowers the youth for employment in future.

- There are plans to enable the youth to attend special trainings on gas related issues at VETA to, eventually,

secure employment within the sub-sector. A hundred youths are accessing this opportunity each year in

Lindi (including all the districts) and Mtwara regions.


- Planning begins at village level. The district council uses an Opportunities and Obstacles to Development

(O&OD) approach, whereby people at grassroots‟ level recommend projects to be implemented. Their

recommendations are then submitted and discussed at the ward levels through the district council where

prioritization of projects takes place.


How is the local government involved by the central government in making and implementing decisions related

to the natural gas sub-sector?

- The central government discusses with the local government authority on projects planned for

implementation in specified areas, including partaking in educating the communities about such projects.


- Responsibilities vary, whereby some are specifically for the central government and others are specifically

for the local government authority.

- Sometimes the involvement is adequate and sometimes it is not. Poor involvement is experienced under the

circumstances that decisions about gas activities contradict initial development plans. For example in

Ushungi village where the local and central governments had executed preparatory work to establish an

LNG plant and industrial park, a process that involved educating the villagers about how they are to benefit.

However, later on, the central government withdrew the plan.

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How is the local government prepared to manage public expectations for immediate gains in light of the fact that

investment being carried out by natural gas companies will not award them with profits in a speedy manner?

- The government refrains from making promises or building baseless hope among the members of the public

knowing that it takes many years before the financial benefits start to be accrued.

- However, people are being encouraged to get prepared to harness the benefits in future by getting educated.

They are also being encouraged to become entrepreneurs to be able to reap the indirect benefits of the gas

industry, as opposed to expecting to receive direct cash or major individual benefits from the gas industry.

Part of this is educating the farmers to use fertilizers so that they are capable of taking advantage of the

fertilizer that will be produced in Mtwara.


How is the local government prepared to manage the revenues emanating from the natural gas sub-sector to

augment its fiscal health and provide services to citizens in a sustainable manner? Are the revenues originating

from the natural gas sub-sector being made transparent to the general public? Are the related expenditures being

made transparent to the general public? How is the transparency of revenues and expenditures ensured? If

transparency lacks, then what is the cause?

- Revenues generated are directed into community service projects as planned by the plan and finance

committees.

- Transparency on revenues is ensured by depositing the money (i.e., a 0.03% service levy received from

PanAfrican Energy on a quarterly basis) into the bank accounts owned by the local government authorities.

Songosongo village gets a 20% service levy out of the 0.03%. Songosongo village and the district council

share this information on public notice boards and through various meetings where financial reports are

presented.

- People themselves make recommendations on how the money should be spent depending on their own

priority needs.


How is the local government ensuring sustainability of the benefits derived from the gas development within the

life cycle of the particular gas development scheme and afterwards?

- This question, for the most part, made the local government aware of the need to deliberately ensure

sustainability of the benefits over the long term. There is fear that the council might ignore other tax

avenues (like timber production) and concentrate on generating revenue from natural gas activities that,

once ended, may cause the district huge financial stress.

- However, the government is currently educating the public on saving money and investing, as well as

bringing experts to assist further on this education component.

- There are plans to increase production of major cash crops (especially cashew nuts and sesame) and

increasing production of other crops like maize and peas.

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- Land conflicts exist, fuelled by the presence of natural resources. For example, there are conflicts in

Somanga and Njia Nne villages (among other villages) where the gas pipe passes but at the same time there

is a wealth of timber forest.

- Most of the conflicts are caused by failure to compensate the people on land ownership. For example,

TPDC took over a land area of 372 acres since 1984 and has not compensated the residents up till now. The

definite solution lies on payment of compensation. Other conflicts are related to boundary issues, but these

are easy to resolve.


- These conflicts emerge because gas companies, for example TPDC, do not refer to the district council for

appropriate maps of the villages and other areas they prefer to possess. They simply undertake land surveys

without consulting or working with the district council. This is typical of the ongoing conflict between

Somanga and Njia Nne villages, whereby TPDC conducted a land survey and decided that a gas plant will

be established in Njia Nne village without knowing that the area allocated also lies in Somanga village.


- There are conflicts in areas where the gas pipe passes, caused by unfair compensation of land and failure to

review land use plans for the respective areas (i.e., something else had been planned for implementation in

the same areas where gas pipes were later on prioritized).


extraction activities?

- Compensation is being guided by the rates developed by the Ministry of Lands, Housing and Human

Settlements. The schedule for 2013 identifies the rates of all types of crops. Also, the compensation rates

for houses are also available, varying with the type of house (i.e., materials used for construction).

Compensation for land depends on the current market value of the land in question.



- The local government officials found the question generally challenging in the sense that it requires

expertise. However, one identified environmental problem is the dumping of chemical substances in

residential areas or areas frequently accessed by community members. People are protesting against this

practice fearing it might harm them and their environment.

- The local government authority is overstepped by the National Environment Management Council

(NEMC), hence affecting its understanding and ability to effectively implement the decisions made at the

national government level relative to Kilwa Masoko district. Reports covering issues of the district are also

not shared with the local government authority.

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- First of all, the entrepreneurs must be ready to register their businesses to be able to operate better. A few of

them are already registering their businesses, and the government continues to educate and encourage them

to register their businesses. Registering their businesses, among other things, will qualify them to work with

the gas companies as well as the government on a tendering basis.

- Some of the local entrepreneurs are already requesting for and occupying plots of land so as to build, for

example, guest houses and tourist hotels. However, even though they are not in shortage of capital, most of

the local entrepreneurs are incapable to take government advice primarily because of their lack of

education.

- The local government authority has allocated a specific land area for small-scale (informal) businesses. The

government faces a financial challenge to compensate. However, efforts are promising and hopefully people

will soon be compensated to submit their pieces of land to the government for implementation of this task.

b. Lindi regional government





- The government raised awareness among the Lindi residents of the presence of natural gas in the region and

its importance to development. The initial stages of awareness raising included holding various meetings at

the regional (RCC), district (DCC), full council, ward development committee (WDC) and village assembly

levels. These meetings were instrumental for educating people about the importance and benefits of natural

gas. Also, the regional commissioner held two meetings with the elders who represented the other residents

of Lindi. These means allowed for a wider dissemination of the knowledge and patience among the people.

- The local residents are also advised and encouraged to improve and increase accommodation facilities to

cater for the increasing population caused by natural gas activities (especially since 2012) as well as

tourism. For example, it is expected that 8,000 people from China and numerous others from other parts of

the world will move to Lindi beginning August 2014. Also, an LNG plant will be built in Lindi. The local

residents are also encouraged to seize other booming business opportunities, like the escalating demand for

food (e.g., meat, cereals, vegetables and fruits). As a matter of fact, the LNG plant will have multiplier

effects of huge magnitudes, such as influencing the construction of petrochemical industries (e.g., fertilizers

production), construction of a new port and improvement of the current one, as well as construction of

hospitals, schools and big hotels. These constitute an opportunity that Lindi residents are informed about

and educated to take advantage of.

- Special programs exist at district/council levels (i.e., District Agricultural Development Plans or DADPs) to

promote agriculture, including promoting a new culture of keeping livestock and poultry as well as eating

meat. The region also established an insemination centre that farmers access through the agriculture

extension officers.

- Security will also be improved in the face of increasing investments and people, including improvement of

police services and establishment of military camps. The roads network is also being improved (e.g., from

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Nachingwea to Masasi and from villages to the main road) to facilitate various social and economic

activities such as transportation of cashew nuts and sesame from production sites (villages) to the port for

exportation.

- Also, MEM has provided scholarships to 50 youths from Lindi region to pursue vocational education at

VETA so as to prepare them for professional employment in the gas industry.


- The government uses an Opportunities and Obstacles to Development (O&OD) system in formulating its

plans, a process that begins from the village (grass root) level. This system allows community members to

identify various opportunities (e.g., tourism) and obstacles (e.g., poor roads) relative to desired development

that eventually guide the prioritization of development activities.

- However, given the huge size of gas projects, most of the plans are formulated at the national level and the

local residents are only informed through seminars about such projects and their benefits to the nation,

region, and communities (i.e., royalties and tax levies, as well as social services like health centers, schools,

water wells, access to electricity, etc.).


How is the local government involved by the regional government in making and implementing decisions

related to the natural gas sub-sector?

- The relationship between the local and regional governments is mainly centered on advisory roles in the

sense that the former is an autonomous authority whereas the regional government provides advice as well

as supervises implementation of projects by the local government. The supervision role is, however,

performed in an indirect manner being guided by the motto: eyes on, hands off.

- When it comes to development issues, the regional government submits projects to the local government

authorities on the basis of O&OD for them to identify viable projects through discussions at village

meetings where they do ranking and prioritization. Thereafter, the local government authorities make

special requests to different development projects that have budgets.

- Also, the regional government conducts seminars through TPDC to the local government officials and

residents, as well as receives recommendations from them.


- There are some short comes linked with this relationship between the regional and local governments,

especially in terms of the freedom to identify own projects at the village level. This stems from their lack of

management (advisory and supervisory) skills of such projects through their respective village committees.

- There is also a dearth of supply of extension officers to address this skills gap, and those available are not

adequately equipped and utilized. Most of the times, the plans formulated by the village committees are also

constrained with the lack of sufficient budgets. Also, their plans are usually overridden by the national

development priorities decided at the national government level.

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How is the regional government prepared to manage public expectations for immediate gains in light of the fact

that investment being carried out by natural gas companies will not award them with profits in a speedy

manner?

- We held a Regional Consultative Committee (RCC) meeting in December 2013, and the regional

commissioner used the platform to inform the community that revenues from natural gas operations will

start flowing to the government in years to come. As such, people were advised and encouraged to ensure

that adolescents are educated to be able to clearly understand and make use of the various opportunities that

will be provided by the sector (including professional employment). This has been a constant message of

the regional commissioner to the people of Lindi. The regional commissioner also convened a meeting in

2013 with leaders from various institutions, such as banks and religious domains as well as a few citizens of

Lindi, to inform them there will not be immediate revenues from the gas industry. They were also asked to

broadly share information on the few employment opportunities that are available in the region, such as

those linked with the laying down of the gas pipe.

- Also, Statoil brought mayors from Norway to a joint meeting in Lindi with the mayors from the region to

share their experiences, and they emphasized that it took Norway 40 years to realize their expectations from

the gas industry. This experience is being made known to the Lindi residents, who are encouraged to

harness current opportunities relative to, for example, agriculture (farming, livestock keeping and fishing).

People are also being informed of the opportunities for various businesses in the region, such as hotels and

food supply.

- People are also being encouraged to access the various scholarships being provided by the government and

that they should focus more on self-employment rather than expecting to be employed by the gas

companies.

- People are also being educated and encouraged to formalize their land ownerships by acquiring land titles to

benefit better from the various investment opportunities, including using their lands as collateral to access

loans.

- This management of expectations is, among other things, helping the residents to accept and support the

investments and operations related to natural gas in a peaceful manner. However, the nation as a whole

needs to have short- and long-term plans of educating Tanzanians on the various opportunities of business

available relative to the different stages of investments. Training should also be embedded in these plans, in

a respective manner.

- TPDC also conducts special seminars with the regional and local leaders, as well as the religious leaders, on

issues concerning management of public expectations.


How is the regional government prepared to manage the revenues emanating from the natural gas sub-sector to


- Local government authorities are given tax levies that vary from one to the other, whereby 60% of the tax

levy is used to facilitate various village development initiatives.

- Also, gas companies provide the respective communities hosting gas extraction activities with royalties.

- All in all, there is a need to have short- and long-term plans to manage the economy and distribute revenues

from the gas sub-sector harmoniously. This matter should be addressed in the natural gas policy.

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expenditures ensured? If transparency lacks, then what is the cause?

- Records of all development funds, regardless of their sources, are posted on the notice boards of the district

and village governments for all people to see and get informed. This is according to the law. Kilwa receives

a royalty of Tshs 149 million per quarter from the gas companies, and this information is posted on the

notice boards. Public announcements and meetings are also used to communicate this information.

- Community members are engaged through village meetings to identify and discuss their priority projects,

which are then discussed by the ward development committees (WDC) and councilors, and submitted to the

full council. The discussions held by the full council are publicly broadcasted through loud speakers as

instructed by the law.

- Unfortunately, some of the villages do not hold meetings on revenues and expenditures, thereby provoking

members of the public to react by refusing to recognize some of the leaders. However, in some cases, the

leaders complain that people do not attend such meetings (village assemblies) when summoned to do so.


How is the regional government ensuring sustainability of the benefits derived from the gas development within

the life cycle of the particular gas development scheme and afterwards?

- The regional government provides advice to the national government to manage the situation by ensuring

that the gas economy does not affect other sectors of the economy.

- The regional government also advises on the importance of long-term planning to ensure that revenues

emanating from the gas industry are spent on major investment projects to sustain the benefits for the

economy.

- A group of German experts were recently invited by the regional commissioner to advise the government

on how to improve the fishing industry as well as other economic sectors within the region.

- The regional government has also prepared a booklet documenting the various investment potentials in

Lindi in order to attract investors to other investment avenues.

- The regional government is looking for external markets for the Lindi entrepreneurs to sell their products

once the gas resource has depleted.



- There are few land disputes, such as between districts, villages and individuals owning pieces of land. There

is a conflict between Ruangwa and Nachingwea districts, which has been solved to some extent. Another

conflict is between Liwale and Kilwa districts, where boundaries are clear but the districts are scrambling

over the timber resource in Mirui village. The regional government is organizing itself financially to go to

these districts and resolve the conflict. Somanga Fungu and Somanga Simu villages are also going through

a land conflict being caused by the tax revenues related to the location of the mobile network infrastructures

as well as the timber resource.

- Many conflicts originate from compensation issues due to expansion of the town. Many residents are

opposing the compensation rates being given for the development of settlements, such as through the Unit

Trust of Tanzania (UTT) program, whereby those in opposition are influencing everybody else to side with

them. The residents are also in fear of losing their land to the newcomers being pulled by the natural gas

wealth.

66

- Conflicts between livestock keepers and farmers are currently emerging due to the massive influx of

newcomers into the region, hence putting pressure on the land that eventually causes the two groups to

clash.

- The region does not have a master plan, hence complicating issues on land use. Land plans are also lacking

(e.g., Ruangwa district has only three out of approximately 80 villages with land use plans) and, where in

existence, these are not adhered to.

- There is a lack of funding to prepare the master and land use plans. Even though customary right of

occupancy is being used as an alternative, it does not substitute the effectiveness of the land use plans.


- The conflicts are minor. Nonetheless, the government is constantly on alert to monitor the trend. Currently,

there are some minor land disputes between the residents (mainly farmers) and investors.


- There is a conflict between Somanga and Tingi villages in Kilwa Masoko district caused by the gas pipe

crossing the area from Songosongo to connect with the one running from Mtwara to Dar es Salaam. Each of

the two villages claims the pipe to be passing within its boundaries. The company contracted to lay down

the gas pipe was supposed to provide Tshs 60 million for compensation, which sparked a conflict on which

of the two villages deserves it. This will be solved by splitting the sum into half for each village to receive.

The two villages are also in a tug of war over their anticipations on who will benefit from the royalties to be

paid by the gas companies following the boundaries controversy.

- There are several areas where individuals complained against the compensation rates in that they were

lower than the actual values of the land and properties. A re-evaluation, which is a continuous activity, had

to be conducted to see if some of the items had been excluded from the previous compensation

arrangements. It was found out that many things had been excluded, and this is a recurrent phenomenon.


extraction activities? What are the challenges associated with these procedures? What is the public opinion

concerning these procedures?

- People log their complaints beginning at the village level, which are discussed by the village land

committee. If the committee finds this exercise to be taxing on its part, the complaints are forwarded to the

ward and district levels and, similarly, up to the regional and national levels. There are various organs

within these different levels of government that employ applicable procedures to address the complaints.

- Also, after realizing that complaints on land disputes were mounting, the regional commissioner formed a

special land commission and made a public announcement inviting people to submit their complaints about

land issues, including those related to compensation.

- A crucial challenge against resolving the land disputes is caused by the Village Land Act no. 5 of 1999 that

authorizes the village governments to allocate land to people directly. This legal freedom causes conflicts

because most people at the grass root level are illiterate. Some investors allure them with money to

authorize pitiable deals, thereby provoking misunderstandings with fellow villagers. Also, these deals do

not involve the district and regional land officers, which contradicts their plans about the village lands. A

good example of this problem can be cited to the Ruvu hamlet in Mchinga 2 village, in Lindi district.

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- The effects are not really known by the regional government but by the Kilwa district government and local

communities, especially Songosongo. However, there are procedures outlined by the government to ensure

that such effects are avoided or controlled. TPDC, which is the sole owner of the gas wells in Songosongo,

is fully responsible for ensuring that gas operation and extraction activities are conducted in a manner that

safeguards the environment and people. However, some time ago the gas wells exploded and the fire stayed

on for about a week until firemen from India arrived to combat it.

- The regional government fears that the laying of the gas pipe poses environmental issues and affects

creatures in the forests and the ocean. It also suspects that the emission of CO2, which normally occurs with

natural gas operations, affects the environment.

- The roads under which the gas pipe is laid are being used to facilitate illegal activities. For instance,

criminals use them for black marketing and hiding from the main road while escaping from the police.




- The regional government provides education on entrepreneurship in an on-going basis.

- It has also attracted banks and micro-finance institutions to the region to enable the entrepreneurs to access

loans. The entrepreneurs are also educated on and encouraged to partake in the numerous business

opportunities being introduced by the gas industry (e.g., food supply and accommodation services).

- The regional government is also hosting the annual Nane Nane events for three consecutive years (2014,

2015 and 2016). Part of the objectives is to boost peoples‟ awareness of the various investment and

entrepreneurship opportunities linked to natural gas. National leaders are expected to use these annual

events to encourage the residents of Lindi as well as Tanzanians at large to make use of these diverse

opportunities.

- Public-Public Partnership (PPP) projects are also being spearheaded by the regional leaders (e.g., UTT is

working in partnership with the Lindi municipal council as it buys and surveys plots for sale). People are

being educated on how to effectively utilize the PPP projects. There is no platform, however, for the

residents to engage and negotiate with the investors so as to work together. This could take the form of, for

example, a resident providing land to an investor and begins to generate income (rents) after the investor

has recovered the construction costs – i.e., even 10 years later.

- Also, the regional commissioner recently convened a meeting with businessmen to educate them on

taxation issues and how to expand and protect their businesses.

- Various groups of entrepreneurs have been identified and categorized (e.g., poultry, vegetable, livestock

and cashew nut farmers) for easier reach by the government on tailored education and capacity building

programs. The goal is to enable them to effectively harness the business opportunities being pioneered by

the booming natural gas industry.

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4.0 Key Observations for Policy Consideration This chapter reports on the conclusive observations subject to the findings of the study. It channels these

observations to policy considerations. The observations and policy considerations are reported in connection

with the findings generated from the household heads, entrepreneurs and local and regional governments.

4.1 Household Heads Primary school education seems to dominate in the communities of Mtwara and Lindi that are hosting natural

gas. This was confirmed by approximately two-thirds of the respondents from each study community. Higher

levels of education are highly lacking. As a matter of fact, there are more people without any formal education

than there are those with education beyond the primary school level. This clearly calls for calculated efforts to

improve basic, secondary and higher education among the local community members so as to draw them aboard

the natural gas industry and its myriad employment and business opportunities. Policy emphasis should

consider including the community members in the entire natural gas value chain process – i.e., upstream,

midstream and downstream. They should be prepared to partake in the white and blue collar jobs, as well as

endowed with requisite vocational skills to actively participate in and utilize the multitude opportunities

embedded in the main gas industry and its spin-off industries. A periodic evaluation of the achievements in the

provision of education and vocational training should be considered a key feedback mechanism for improved

performance.

Farming appears to be the primary economic activity in the Mtwara-based communities engaged in this study.

However, entrepreneurship is also practiced to a considerable extent. Notably, farming is almost not practiced in

Songosongo, whereas entrepreneurship rules. Much as the natural gas industry has inherent enormous

opportunities for entrepreneurship development, policy emphasis should substantially dwell on preserving and

developing other sectors of the economy for a diverse and sustainable employment and economic progress.

Farming can be sustained by providing the farmers with requisite education and various growth and support

opportunities (e.g., farming techniques, irrigation schemes, the use of ICT, as well as market information and

access mechanisms). This should be implemented within the scope of entrepreneurship in the sense of capturing

the widening opportunities that the gas and spin-off industries present. The commercialization of farming and

other agricultural activities (such as fishing and livestock keeping) will translate into improving the livelihoods

of the community members in lieu of the increasing population (market) and entrepreneurship opportunities. It

will also retain and attract the youth to rural areas.

The use of thatch grass and makuti (leaves of coconut trees) for roofing houses is very common in all the three

study communities. Similarly, mud is also commonly used for building walls, though more so in Mtwara where

dust floors are also much noticed. Songosongo seems to be doing better than the Mtwara communities in all the

three aspects. A significant number of the Songosongo respondents reported using cement, lime and stones for

building floors. However, houses made of thatch grass, makuti, mud and dust are of a considerably low standard

and serve to validate the high levels of poverty in these communities. For people to tangibly appreciate the

contribution of the natural gas resource resting below their land to their well-being, they must experience a

positive transformation in their housing and settlement standards. Many industries will be located in Mtwara

and Lindi following the discovery of natural gas. One relevant example is the on-going construction of the

cement factory in Mtwara. Deliberate policy considerations should guide these developments to improve the

housing and settlement conditions of the communities in question. This will not only improve their overall well-

being but also garner community support of the various investment activities and build up peoples‟ trust in their

government. Some of the corporate social responsibilities of the gas companies could, for example, include

donations of modern construction materials to the community members. Another way could be for the

government tax mechanisms to relieve the community members of higher prices of such materials than they can

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reasonably afford. This must go hand in hand with encouraging them to shift from the use of traditional building

materials to modern materials.

Only a small proportion of the community members in all the study areas are happy with the condition of the

water they are using for their domestic errands. Most of them (i.e., 84% in Nanguruwe, 78% in Madimba, and

69% in Songosongo) categorize the water condition as varying between average and poor. Ponds and regular

wells are part of the main sources of drinking water in the Mtwara communities, whereas their counterparts in

Lindi are very much in appreciation of accessing water through running taps. Astonishingly, even though water

taps are common in Songosongo, most community members across the three study communities are

complaining that the walking distance of 60 minutes one-way to fetch the water is very far. Indeed, water

condition and access distances should receive a deserving consideration by the government and other

stakeholders, including the gas companies, if sound human development is desired. These communities are

seriously not amused by the current status quo and call for stern actions to rectify their situation. Having access

to hygienically clean water in the proximity of the households requires improving and increasing the water

sources. Much as ponds and regular wells serve a significant purpose of providing water for domestic uses, they

are typically located in very distant places and are producing water that is detrimental to the health of the

community members. Even the tap water is cited for being distant and of undesirable quality. The importance of

a quick policy intervention on the matter cannot be overemphasized. For the booming natural gas industry to

really make sense to these communities, and as the government plays its role rather fast and more effectively,

one important policy action would be to task the gas companies with making the water agenda a top most

priority in their corporate social responsibility plans.

While most of the residents of Songosongo are able to access electricity for use at household level, firewood is

also significantly used. Strikingly, firewood is almost the only source of energy in the households of the

communities in Mtwara. This is happening while these communities are saturated with natural gas right in their

midst. The domestic uses of natural gas are vast. Some of them include generation of electricity for lighting,

heating and cooking. Natural gas also supplies direct energy for cooking. The extraction of natural gas in

Songosongo is awarding the residents with substantial direct benefits in that they are able to access power. The

two communities of Mtwara are, however, left out on similar benefits despite the fact that electricity is already

being produced in their region – but currently concentrated on catering to the needs of the urban communities.

Policy considerations should fast-track the supply of electricity to the two communities. Such supply should go

hand in hand with the provision of affordable connection and maintenance costs (in case it cannot be provided

for free). The supply of electricity should be clearly attributed to the benefits of natural gas for the residents to

tangibly appreciate hosting the discovery sites and continue to support the related investments.

While some of the domestic uses of natural gas – particularly access to electricity and energy for cooking – are

identified in the three communities of the study, most of the people do not know a thing about how natural gas

can be used. This rampant lack of knowledge heralds a failure of the government to educate the citizens. It may

also imply that education of the same is lacking among the local government officials. This finding should,

therefore, serve to awaken the policy process in taking action towards ensuring that awareness messages on the

domestic uses of natural gas are effectively disseminated. Current efforts are centrally concentrated on passing

on messages to the public about the macro-level uses of natural gas – e.g., production of fertilizers,

pharmaceutical products and electricity. Even so, members of the public are still failing to connect the

production of electricity to their domestic level.

The three study communities are largely comfortable with their high levels of security. However, the levels of

comfort are less among the Mtwara-based communities in Nanguruwe and Madimba wards. The Ntorya and

Mnazi Bay gas fields are, respectively, hosted in these wards. Public perception on being safe and secure, and

its related experiences, is crucial for development. Therefore, given that some of the public members are living

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in fear and experiencing crimes, strategic interventions on the side of the government are critically needed to

alleviate their dire situations. Members of the public are, rather shockingly, implicating the government itself as

well as the natural gas companies for instigating the fear. The two must undertake an introspection of their roles

in creating this situation and quickly resort to becoming ambassadors and enforcers of peace and security in the

communities and regions concerned. The government must particularly enliven its role and lead the gas

companies in this direction.

There are varied perceptions among the community members across the study areas on the likely changes that

will result from the development of gas industry. Universally, extractive industries tend to cause demographic,

economic, social, infrastructural, agricultural, governance, environmental, entrepreneurial, cultural, and land use

changes. The experiences of these changes can either be positive or negative, relative to each changing variable.

Tanzanian communities are not strangers to these changes, especially in mining areas. Even the communities of

Mtwara and Lindi are anticipating changes from the booming gas industry. They see these changes happening

in terms of population growth, outburst of diseases (especially HIV/AIDS), increased demand for and

improvement of accommodation services, increase of employment, increase of businesses, as well as alterations

to the environment and their cultures. Some peculiar anticipation of the changes is also prevalent. While the

number of those not anticipating any change is small, the fact there are people in these communities not

knowing that changes will be inevitable draws a keen policy interest relative to educating the communities so

that they get ready and prepared. This is also in congruency with the infamous objective by the government of

managing public expectations. The government should also fortify its efforts to, particularly, educate the

residents about the likely health changes such as HIV/AIDS, tuberculosis, and other communicable diseases. It

should intensify its provision of curative and preventive measures.

The condition of roads is reported to vary across the study regions. The roads used by the residents of

Nanguruwe and Songosongo wards are in better condition as compared with those used by the residents of

Mtandi ward. In fact, the condition of roads is regarded by majority of the Mtandi ward residents as being a

limiting factor of transportation year round. This defeats the absolute purpose of having a road. As the economy

and entrepreneurship opportunities continue to flourish side by side with the expanding industrial activities and

growing population, roads are increasingly and more vigorously needed to link communities to their districts

and regions. Their use is progressively becoming more intense and frequent, thereby necessitating policy

actions to ensure that they are passable year round and can continually cater for the growing demand. Good

roads constitute an active ingredient for economic growth and development by facilitating transportation for

trade items and people. They are also good for creating and sustaining social ties.

These communities are also in demand for a variety of services from the government, including ensuring that it

manages the economy in a transparent and accountable manner. They specifically expect that the government

will provide them with social services (i.e., water, education and health care), manage the gas economy properly

for improvement of the life of citizens, foster infrastructural development (e.g., roads, ports and electricity),

create employment opportunities (e.g., attracting investors to the regions), and improve their housing

conditions. They also expect the natural gas companies to play various roles in spearheading development in

their communities and regions. They particularly relate such roles to the provision of social services (i.e., water,

education and health care), employment in favour of the community members, development of infrastructure,

and economic empowerment of the community members (e.g., capital, equipment and capacity building). They

also expect the gas companies to improve their relationships with community members (especially by honoring

their promises to the communities) and engaging them in their decision making processes. The government

absolutely needs to heed these community expectations in its policy processes to be able to manage them well.

The government must take a deliberate effort to clarify the roles of different stakeholders in the natural gas

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value chain and spend enough time on educating and teaching the communities to play their part. This is an

important policy consideration because there are a number of community members not knowing the roles of the

government and gas companies, and even their own roles. Fortunately, the people are willing to support the

government by providing labour to various projects (e.g., building schools and dispensaries), protecting public

resources (including the gas infrastructure), and paying taxes for national development. They are also devoted

to informing the government of their numerous challenges for it to act upon in the spirit of serving the public.

However, it is important that community roles are stipulated in policy to enforce clarity and pervasive

awareness as well as manage active participation of the community members in the development course.

On the aspect of community access to information on gas-related activities, the village governments are

appreciated for playing a commendable facilitative role using meetings, public announcements, notice boards

and posters. However, there is a significant number of community members complaining of being denied access

to the information by the government. This indicates a big problem right at the unfolding of the gas industry in

the country. It is clear that the village governments, given the means they use, do not segregate in their sharing

of the information. The problem is probably vested in the limitations of the means being used. Policy processes

must identify more means of information sharing as well as those that can work better under specific

circumstances so that the village governments are successful with this task. All members of the community

ought to be reached out by the information being shared. Education or awareness raising campaigns that are

featured with entertainment packages are usually more effective in communities dominated by people with low

or no formal education. One possible means, given the nature of these communities, could involve the use of

drama performances to attract the majority of the people in the communities to the information sharing

gatherings. Drama performances in this case play the crucial role of educating while providing the opportunity

for entertainment. Colourful stilt men can also be used to disseminate messages using public announcements.

These are only some of the many edutainment ways that can be used to draw a wider public attention to the

messages concerning the gas industry.

There is a variety of experiences among the community members in the localities hosting the gas wells with

respect to compensations for land re-occupation by the gas companies. Most of them, however, express their

dissatisfaction having undergone distasteful experiences with the compensation arrangements or procedures;

mainly in relation to the rates paid for properties (land, crops and structures). This marks another crucial

problem area that the government must pay added attention to. The dwellers of Madimba and Songosongo

wards are particularly complaining that the gas companies are destroying their crops. There are various

examples of countries in Africa and beyond where unfair compensations have forged antagonistic relationships

between governments and people, people and gas companies, as well as people against people. Tanzania has

also had similar experiences in other sectors, and the problems are now infiltrating the natural gas sub-sector.

These experiences and their likely consequences cannot be ignored. Carefully crafted policy actions should be

hastily espoused to mitigate them while taking into consideration their generic and unique nature. Locally-

generated solutions should receive adequate room in the policy process. Below are the solutions that were

proposed in each community:

a. Nanguruwe ward:

● Community members and the village government should be compensated accordingly.

● Farmers living close to the discovered gas fields should be relocated to protect them from the health

impacts of the activities of the gas companies.

● The government should determinedly intervene to control and regulate the activities of the gas

companies.

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● The government should take the lead to ensure that community members are properly compensated for

their „grabbed‟ land. Even though farmers do not possess land ownership deeds, the government should

at least ensure they are compensated for the destruction of crops on their farms considering that farming

is a tough job.

b. Madimba ward:

● Compensation for trees being affected should be increased.

● Investors and community members should be able to negotiate on compensation matters.

● The government should be more considerate of its citizens in ensuring their rights are not overridden by

investors.

● The value of the land is higher than the compensations being given. Justifiable compensation rates

should be considered and also given in time.

● There should be adherence by the government and gas companies to transparency, laws and regulations.

c. Songosongo ward:

● Investors should act on their promises to the residents.

● Investors should provide information in time before entering peoples‟ lands.

● Government leaders should make a close follow up on agreements with the gas companies and

residents.

● The government and gas companies should view provision of social services as a way to mollify the

residents from their sundry disappointments.

● The government and community members should find solutions as a team and not in isolation.

● The government should always seek consent of the citizens before making decisions on the gas

industry.

● The government should ensure provision of compensation, both adequately and timely.

● The village should sue TPDC for the various land and environmental problems it is causing.

● There should be a reconciliation committee to rejuvenate the relationship between the residents, on one

hand, and the government and gas companies, on the other hand.

All the communities have some limited cases of land use conflicts that do not originate from the operations of

the natural gas industry. However, a policy approach in the realm of the solutions proposed above should bear

in mind the importance of resolving these conflicts too.

The fact that the exploration activities of the gas companies yielded negative environmental impacts in the

communities of Mtwara and Lindi (especially Madimba and Songosongo wards), and that Songosongo is

currently experiencing negative environmental impacts in the extraction phase, and as same activities are soon

to start in Nanguruwe and Madimba wards, tells two interrelated stories. One, the negative environmental

impacts that were experienced by the three communities following the natural gas exploration activities were

condoned and that is why they continued in the extraction phase in Songosongo. Two, the fact that Songosongo

is having the experience of negative environmental impacts in the exploration and extraction phases is a signal

for Nanguruwe and Madimba wards to be cautious of the potential to undergo the same experience. Drawing

this problem to light is, in itself, one of the major steps in resolving it. The government should ensure that not

only are the residents of Nanguruwe and Madimba wards shielded from the foreseen environmental problems in

the extraction phase but also solutions are effectively propagated and enforced on the side of Songosongo. This

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ought to be aligned with the governing principles of sustainable development. Environmental performance of

the gas industry in the overarching national goal of transforming the economy and livelihoods of Tanzanians

over time must be monitored and evaluated very closely on the basis of its congruency with the principles of

sustainable development.

4.2 Entrepreneurs Primary school is the most dominant level of education among the entrepreneurs across the study areas (Mtwara

rural district and Nanguruwe and Madimba wards in Mtwara, as well as Kilwa Masoko district and Songosongo

ward in Lindi). Secondary school education is only significantly achieved among the entrepreneurs located in

the urban areas of these regions (i.e., Mtwara rural and Kilwa Masoko districts). Even higher levels of education

are also observed in these urban centers, though not significantly. Education is, inarguably, an important

facilitating factor for successful business performance. It equips entrepreneurs with the requisite analytical skills

to assess the performance and specific needs (e.g., loans and training) of their businesses. However, while

education is important, a policy focus should aim at higher levels than primary school, especially college and

university levels. Special business training programs should also be emphasized so that these entrepreneurs can

harness improved business management skills and techniques to identify opportunities for improved

performance and expansion. Business education should also be able to address the major challenges of

accessing capital, identifying and retaining customers, and shielding businesses from theft and customer

delinquencies. The taxation regimes should also be reviewed to ensure a sustainable inclusion of the

entrepreneurial activities. A priority on these matters is of paramount importance as the gas industry continues

to unfold scores of entrepreneurship opportunities.

Most of the businesses in the study regions are operating at the capital mark of Tshs 5 million and employing up

to four people. These are, typically, micro-enterprises (a majority of which are informal). These entrepreneurs

need to be educated on the importance of formalizing their businesses and, at the same time, supported to access

more capital in parallel with receiving education on the likely risks. As a matter of fact, they are all admitting

that the financial capital they are operating on is inadequate. Boosting their skills and repositioning their

businesses to a more competitive edge is important for the enterprises to be able to cope well with the

competition that is gradually increasing in these regions. With daily revenues of as little as Tshs 3,000/-, some

of these businesses will not be able to sustain themselves for much longer as the competition roars on – if

drastic measures are not taken immediately. The entrepreneurs based in the urban areas of the two regions are

already being challenged by the stiffness of the business competition. This signals a potential loss of

employment to the respective entrepreneurs and their employees if effective intervention is not waged. It also

means a replacement of the native entrepreneurs by foreigners.

Electricity and transportation infrastructures play a key role in unlocking the potential for economic growth.

This is also true for the entrepreneurial activities because electricity makes the production of goods and services

faster and more convenient while transportation facilitates their movement and that of the people. Fortunately,

the urban-based enterprises of Mtwara and Lindi are predominantly electrified. However, those in rural areas,

especially in Nanguruwe and Madimba wards, are largely not electrified. Most of these businesses use other

means of energy sources and a bit of fuel-run generators. Even so, the use of electricity does not seem to be

very rewarding as the entrepreneurs from Mtwara rural and Kilwa Masoko districts reveal. The electricity

connection charges and maintenance costs draw complaints for being rather high. Other entrepreneurs,

especially those in Madimba ward (Mtwara) and Kilwa Masoko district (Lindi) are greatly constrained with

erratic power supplies. Meanwhile, the entrepreneurial activities in the study areas are also facing the

excruciating challenge of poor road conditions. The roads are impassable during the rain seasons, thereby

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periodically disconnecting the businesses from the sources of capital goods and services as well as markets.

These problems affect the performance of the businesses and threaten their continued existence. Clearly, the

challenges of poor and costly access to electricity as well as seasonal roads are a serious hurdle to the success of

business performance in Mtwara and Lindi. The government is making commendable strides in resolving the

two issues, among others, at a national level. However, given the potential for a sprinting economic-growth

phenomenon in and ability to generate electricity from within these regions, the concerns of these entrepreneurs

could be addressed much sooner. The government should pioneer this process so as to provide the entrepreneurs

with an improved business climate for them to become active and growing participants of the burgeoning

entrepreneurship field. These efforts should also take advantage of the convincing safety levels reported by the

entrepreneurs while, at the same time, addressing the few reported security risks.

The entrepreneurs in the study areas also expressed their various expectations from the government with regard

to the kinds of support they need in order for their businesses to register better performances. Their shared

expectations included capital boosting (including being facilitated with access to low interest loans, subsidies

and equipment), improvement of infrastructure (especially roads and access to affordable electricity), and

improvement of social services. The latter was related to the business goal of expanding the customer base by

attracting and retaining newcomers. Other major expectations include ameliorating the investment climate so as

to smooth the investment initiatives and award people with employment. This is cited for increasing money

circulation in the regions, thereby expanding the customer base. The entrepreneurs are also calling on the

government to revise the tax and licensing policies to facilitate rather than constrain entrepreneurship. The

entrepreneurs based in Mtwara are also expecting the government to allocate specific business areas and build

business parks for lease, as well as enhance the security for doing business, provide education on

entrepreneurship, and help with identifying markets. The issue of rising inflation seems to challenge some of the

entrepreneurs, hence calling for government intervention.

The entrepreneurs also have numerous expectations concerning the roles of the natural gas companies in

improving the performance of their businesses. Their shared expectations include improvement of social

services (also to attract and retain newcomers as customers), improvement of infrastructure (especially roads

and access to electricity), and assisting the government with providing education on entrepreneurship, business

loan and capital equipment. Another major expectation is that the gas companies will establish their industrial

operations in Mtwara and Lindi so that the businesses can benefit from the resultant increased money

circulation. The entrepreneurs from Mtwara rural and Kilwa Masoko districts are, in addition, specifically

expecting the gas companies to become a market opportunity for their goods and services and favour them for

tenders. They also expect the gas companies to be honest and loyal to the government on revenues and

agreements, and provide people with education on the importance and uses of natural gas. Those in Mtwara

rural district are also expecting the gas companies to build a business complex for lease so they can conduct

their business operations in a more organized environment.

To augment the efforts of the government and gas companies, these entrepreneurs are committing themselves to

protecting public properties (including the gas infrastructure), reveal crimes and related plots, working hard to

spin forth the wheel of development (including paying taxes in time), make the government aware of their needs

and challenges, and preserve peace and tranquility. Some of their other commitments include protecting the

environment, sending children to school so they can serve in the government in future, and sustaining the

provision of social services by adhering to the cost-sharing schemes.

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These are the expectations that the government needs to manage, deliver on and oversee for the sake of

entrepreneurship development as well as generation and sustainability of employment in the regions. More

expectations should be mapped out as much as possible and strategies for meeting them effectively established.

The readiness of the entrepreneurs to play their part should be a motivating factor to the interventions waged by

the government and natural gas companies. Education or awareness should also be provided to the

entrepreneurs to clarify these roles and others on the sides of the government, gas companies, entrepreneurs

themselves, and other stakeholders. These issues should, however, be implemented in an organized manner and

within the frameworks of policy and legal instruments. Related cross-sectoral initiatives in existence should be

made more effective and favourable in catering to these expectations given the pace and magnitudes at which

the gas industry is projected to transform these regions.

4.3 Local and Regional (Central) Governments

There are various observations on the findings from the local and regional government officials of Mtwara and

Lindi. Cross-sectional and comparative analyses put to table some of the existing strengths and weaknesses (or

gaps). The strengths should be capitalized on as the gaps are sorted out and addressed. This section identifies

the key issues that should be tackled in connection with the responsibilities of the two levels of government

within the common goal of serving the people of Mtwara and Lindi.

Local and regional governments of Mtwara

➢ Inter-government cooperation and citizen involvement:

Numerous plans on employment and development projects for the Mtwara people are underway at the local and

regional government levels. For example, the Mtwara district council is working on improving service delivery

for the benefit of the Mtwara residents as well as to attract investors. Some of the current efforts include a

survey of the land to attract investments in factories, hotels, etc. This conforms to existing joint master plans of

the Mtwara municipality and Mtwara district council. There is also an increasing demand for land in areas

surrounding the district council, which has led to a resolution to incorporate six surrounding wards into

planning areas. They include Naumbu, Mbawala, Mayanga, Ziwani, Nanguruwe and Msanga Mkuu. Legally,

these areas used to be village lands. The responsible ministry declared these lands in the Government Gazette

no. 404 of November 8, 2013 to be planning areas. A master plan that incorporates these wards is currently

being prepared. There also exists a connection between the two levels of government in that the district council

consults the regional government for guidance and assistance whenever necessary while implementing it plans.

The two levels of government are also working closely together in planning and strategizing for development in

the region through joint meetings that are usually summoned by the regional government. However, the

regional government realizes that gas exploration and extraction activities do not, by themselves, employ many

people. Employment opportunities will be abundantly available in industries and industrial activities that use

gas. Also, the cement factory (Dangote) will need approximately 300 lorries (let alone ships) transporting

cement away from Mtwara every day, which will provoke construction of hotels and, hence, generate

employment opportunities. It is worried though that these developments may fuel the outburst of diseases

following increased population size and movements. Also, the roads may not be capable of handling increased

movements of heavy trucks without sustaining frequent damages. It is also expected that lowering of the

charges for connection of power to households along or around the areas where the gas pipe is laid will boost

community participation in economic activities. The expansion of the port area to 26,000 hectares and the

prospective construction of fertilizer factory in the region are also interpretable in terms of employment. This

includes the development of the port area by the Economic Processing Zone and Special Economic Zone,

improvement of the airport and railway, and construction of the referral hospital and exemplary health centre.

The national government is also giving a hand in enabling the local residents to acquire the requisite skills to be

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able to employment opportunities in the gas industry. TPDC is particularly sponsoring the youth to undergo

training at VETA and other institutions. However, the regional government admits that it is not aware whether

or not its involvement of the local government is sufficient. In fact, the local government officials confess that

their involvement by the regional government is characterized by some short comes. The major one emerges

from the regional government‟s omission of the local government in decision making, especially on matters

pertaining the gas industry. It is normally involved at the implementation stage, though not fully. As a result, it

implements what it does not fully understand and, given its close contact with the people at the grass root level,

consequently fails to explain well when people need answers surrounding what is being implemented. This

makes the community members suspect their local government leaders of being traitors. The regional

government expects this feedback from the local government. Hence, the latter should communicate this

concern to the former. The two should improve their work relationship for the overall benefit of the people of

Mtwara and the convenience of their particular responsibilities. Also, while the central government engages the

religious leaders in comprehensive awareness raising campaigns, it currently does not follow up if these leaders

are relaying the messages to the people. This slows down the whole idea of managing peoples‟ expectations as

the government fails to appreciate the effectiveness of the approach and areas requiring improvement. Not

knowing whether or not the messages are being relayed to the people is an even bigger problem. The

government needs to relentlessly monitor and evaluate all of its initiatives in the region towards enhancing

public understanding and managing public expectations in the gas sub-sector. The developments being

propelled by the regional and local governments must also take into consideration the future increases in

population size and movements, and the likely health consequences. Plans and initiatives must be instituted in

order to manage the situation at this moment of development. The same goes for ensuring that the roads are

only used based on their capacities. The projected future increase of roads usage due to cement production in

the region must be managed now before problems start arising. The national government must also intervene to

ensure that the local resident employees are consistently given contracts and given reasonable wages/salaries by

the cement factory.


While the regional government advises and inspects on a quarterly basis the development projects being

undertaken by the district council, including those supported by service levies received from the gas companies,

the district council is unclear about the issue of royalties. It also finds the amounts being received from the gas

companies (Tshs 4 million/- per quarter) rather meager. There is also a legal challenge regarding who the gas

companies should pay the service levies to (i.e., is it to the respective government in which they are

headquartered or to the Mtwara district council?). The central government should clarify on these matters to

make the activities of the local government more convenient and effective.

Although revenues are yet to be fully generated from the natural gas sub-sector, except for the service levies,

the central government is, creditably, already setting up a transparency initiative to monitor the revenues and

expenditures associated with the sub-sector. However, as this is being done, the local government advises that

public education on the issue of revenues should be provided so as to manage peoples‟ expectations and make

them generally aware of the pertinent issues to avoid chaos in future. The regional and local government

authorities should proactively engage the national government in seeking the necessary guidance to be able to

address this challenge.


The regional government is undertaking numerous initiatives to ensure sustainability of the benefits derived

from the gas resource after its exhaustion. Some of these initiatives include maintaining cultivation of cashew

nuts and other crops as well as establishing the Mtwara Development Cooperation (MDC) and Mtwara

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Development Fund (MDF). It learned of these initiatives from the Kilimanjaro Uchumi Company in Moshi. The

initiative is fully supported by the local and regional governments as well as all members of the parliament from

Mtwara. Importantly, all district councils are envisaged to become share holders of MDC. What is interesting

though is that the local government officials did not mention this initiative during the discussion. In fact, they

ended up confessing to their overlooking of preparing for the time when the natural gas resource runs out. The

local government notes that the resource will run out in around a hundred years time from when the extraction

begins, a time frame that the government does not plan within. However, it sees the value of not abandoning the

traditional economic activities (such as cashew nuts farming) while at the same time focusing on activities

directly stimulated by the gas industry. The two levels of government need to synchronize their roles and efforts

towards serving the people of Mtwara. The regional government should bring the local government aboard its

momentous initiatives for the two to collaborate right from the decision-making stage.


There are numerous land use conflicts in the region caused by a scramble for resources, upgrading or

modernization of settlements, double allocation of land, and confusions about boundaries. However, the

regional government confirms that most of the land disputes in the region are caused by compensation issues

related to land allocation from the natives to the gas companies. A major trigger of these conflicts is the

decision of some of the natural gas companies to provide more compensation amounts to community members

in some areas (than stipulated by the compensation guidelines prepared by MEM) to smooth and hasten their

operations. Consequently, the local residents receiving the compensation amounts within the thresholds

determined by MEM get suspicious of being unfairly compensated – fearing that their leaders are corrupt. This

is not a commendable practice in light of the natural gas fuelled tensions experienced in the region. This

practice contradicts the government efforts to manage the public expectations and calm people down in the

wake of the recent unrest. Also, the fact that the local government is unsure of there being land use conflicts in

connection to the gas industry is certainly confusing. This is because the household heads of Nanguruwe and

Madimba wards are reporting on the existence of such conflicts, especially those related to compensation issues.

Again, both levels of government confirm that there have not been any land conflicts in areas where the natural

gas infrastructure has been established. However, their confirmations seem to be negated by the local residents

of the gas hosting communities who have witnessed or experienced such conflicts. The local government should

work closely with the regional government to seriously identify the land use conflicts (gas-related and others) to

be able to address them together. Concerted government efforts on the problem that has regional-wide

implications are more sagacious than isolated efforts. Both governments should also find appropriate ways to

manage the contracts between the gas companies and the residents concerning compensations so that these

conflicts are reduced.


While the regional government admits that there have not been any social or environmental effects caused by

explosion activities during the exploration of natural gas, the local government says there have been some but

only at an insignificant scale. This is because the exploration or seismic activities take place deep in the ground

and far away from the residential areas, and that most of them are conducted in deep sea. According to the

regional government, the public is usually informed before the explosions take place, and that the consequent

vibrations are hardly felt. Meanwhile, the local government confesses to being ignorant of the possible

environmental impacts of the gas exploration activities due to its lack of expertise on the subject matter. No

wonder it is not aware of the experiences of the local residents of Nanguruwe and Madimba wards. These

residents have experienced negative social and environmental consequences following the exploration activities.

Consequently, as the public is waiting for their government to take action, the government is unaware of the

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problem. This implies a disconnect between the government and the people on the ground. The regional and

local governments must team up, with the assistance of experts in the field, to study the problems being reported

by the local residents and work jointly to address them. The national government should ensure that this work

relationship is formulated without delay and oversee its purpose by becoming an inherent part of its functions

and achievements.


The local and regional levels of government are in agreement that not much has been done to enable the

entrepreneurs of Mtwara to benefit from the burgeoning trade opportunities being instigated by the natural gas

industry. The regional government has noted that most of the current middle- and large-scale entrepreneurs are

actually not the residents of Mtwara. The local government also confirms that most of the resident entrepreneurs

are not prepared to grasp the lucrative opportunities standing on their door steps. It also confesses to have not

undertaken any specific research to identify the potential business opportunities and their sizes as well as

ascertain the capacities of the entrepreneurs to utilize them. The regional government, however, is aware that

these entrepreneurs are constrained with the problems of capital and limited skills to produce quality goods and

services. It is also educating the resident entrepreneurs so that they are able to actively participate in the

lucrative development opportunities. On its side, the local government is already allocating a special land for

business activities to tangibly include the local entrepreneurs in the agenda. For these efforts to bear the

anticipated positive results, the two levels of government need to join forces. They should also seek expert

guidance to adequately address the challenges being experienced. Other stakeholders, such as banks and

business training institutions, should be brought on board to make this initiative highly worthwhile and

successful in creating many employment opportunities and fighting poverty in the region. This might even

include formation of a regional task force on advancement of entrepreneurship with a special focus on enabling

the local entrepreneurs.

Local and regional governments of Lindi

➢ Inter-government cooperation and citizen involvement:

The regional and local governments have taken deliberate measures to inform the people of Lindi of the

presence of natural gas in their region and its importance to development. The sharing of the information has

been a major contributing factor to the patience of the people of Lindi because they now base their expectations

upon the reality that it will take time before the gas companies start generating returns to their investments.

People are being informed of the various direct and indirect employment opportunities that they can make use

of. The Ministry of Energy and Minerals is providing scholarships to the native youths to pursue vocational

education at VETA to be able to benefit from the employment opportunities coming from the gas industry.

PanAfrican Energy also sponsors 10 students from Songosongo ward each year to attend secondary school

education. The two levels of government are also concentrating on mobilizing the people to take advantage of

the various business opportunities that the gas industry is blessing the region with. People are being educated to

make use of electricity to transform their social and economic standards. They are being encouraged to partake

in the various entrepreneurship opportunities, such as agriculture (e.g., poultry, horticulture and livestock

keeping) and other forms of entrepreneurship (e.g., hotels). The regional government is running various

programmes to facilitate these initiatives, such as District Agricultural Development Plans (DADPs) and an

insemination centre. It is also working on improving security services in the region, including improvement of

police services and establishment of military camps. Each side of the government is doing a commendable job.

What is even more is that they are working closely together in performing their clearly defined roles. The local

government submits its plans to the regional government following consultations with the local residents using

79

the O&OD approach. The latter approves the plans and then the local government makes special requests to the

different development projects that have budgets. The central government continuously provides supervision

and advice to the local government on implementation of the projects in the style of eyes on, hands off.

However, though both governments are happy with their working relationship, they also note down some

limitations on the side of one another. The regional government is of the opinion that the freedom to identify

own projects with involvement of the villagers by the local government is challenged by the poor management

(advisory and supervisory) skills of the village committees. Also, though O&OD approach is used to involve the

villagers in planning, the large size of natural gas operations does not feature well for planning at the grass root

level. As a result, the central government formulates the related plans and informs the local residents about the

importance of the planned projects to the nation, region and communities through seminars. On the other side,

the local government also complains of their poor involvement by the regional government in decision making

in relation to the gas industry, especially when some of the decisions countermand initial development plans.

The two levels of government can solve these challenges by working together to improve the management skills

of the village committees as well as collaborating in decision making on activities related to the gas industry.

Communication of the challenges that each side is facing relative to shared responsibilities should constitute a

key factor of their work arrangements. They should incorporate solutions to such challenges in their joint plans

so that each side assists the other – as opposed to being a hurdle - to effectively implement a common or cross-

cutting agenda.


The regional and local governments are working hard and rather strategically to proactively manage the

expectations of the public. The former uses meetings with community members as well as the leaders from

various institutions such as banks and religious domains to raise their awareness on different issues. Some of the

issues include the fact that revenues from the gas industry will start flowing into the government coffers in years

to come, and that the residents should value the role of education in awarding them with direct and indirect

employments in the gas industry. Various scholarship opportunities available in the government are being made

known to the residents. The regional government also collaborated with the Government of Norway to bring in

mayors from Norway to a joint meeting in Lindi with their counterparts from the region for experience sharing.

People are also being educated and encouraged to utilize the existing and impending entrepreneurship

opportunities by improving their agricultural activities, formalizing lands, and investing in the hotel industry.

The local government is also playing its part in delivering a similar education on the entrepreneurship potential

as well as the potential for improving agriculture given that a fertilizers factory will be constructed in the

neighbourhood region of Mtwara. It also particularly refrains from making promises to the local residents

knowing that time is still needed before gas companies can start contributing significant revenues to the

government. These efforts, as confirmed by the regional government, are indeed paying off. This can be

observed in the patience and tranquility that the people of Lindi have relative to their expectations from the gas

industry. They are accepting and supporting related investments and operations in the industry rather peacefully

and patiently. They remained calm even when their counterparts in the neighbouring region of Mtwara launched

violent protests. In addition, the regional government has a national view on the business potential in Lindi. It

makes a special call for the national government to undertake strategic planning and training initiatives in order

to engage or include all Tanzanians in the business opportunities.


A 0.03% service levy from PanAfrican Energy is deposited into the bank accounts owned by the local

government authorities on a quarterly basis, whereby Songosongo village gets a 20% service levy out of the

0.03%. The revenue is used to fund village development projects. Also, Kilwa district receives a royalty of Tshs

80

149 million per quarter. These revenues are spent in accordance with planned activities that are put together by

the plan and finance committees. The law instructs that records of all development funds, regardless of their

sources, are posted on the notice boards of the district and village governments for public access. Transparency

of the revenues is also ensured by depositing the revenues into the bank accounts owned by the wards and

informing the people through village/ward meetings. It is the people themselves who recommend how the

monies should be spent depending on their priority needs. Planned and actual expenditures are then

communicated to the public on the notice boards. Public meetings are also used to inform the residents about

the expenditures incurred for different projects and programs. Financial reports, which are prepared by the

financial committees, are read out at these meetings. However, the regional government observes that

transparency of the revenues and expenditures faces a challenge at the local government level. This is because

some of the villages do not hold regular meetings on revenues and expenditures, thereby provoking members of

the public to react by refusing to recognize some of the leaders. However, in some cases, the leaders complain

that people do not attend such meetings (village assemblies) when summoned to do so. However, the fact that

this challenge is reported by the regional government and not by the local government raises some curiosity.

Regardless though, the fact that it is clear with the regional government should prompt its utter reaction in the

direction of addressing it. In so doing, the regional government should engage the perception of the local

government on the matter and assist it in educating the village leaders and villagers on the importance of

sharing and accessing the information. Village governments should be audited on the manner in which they

summon the meetings, as some of the villagers may not be reached by the respective messages. The villagers

can also be engaged in identifying the means that would be more effective for them to get informed about the

trends in revenues and expenditures. These efforts dovetail well with the overarching objective of the

government in managing public expectations and maintaining peace and tranquility especially in relation to the

gas industry. Lack of transparency or poor communication about revenues and expenditures can arouse public

suspicion on the leaders and provoke their undesirable reaction, which may affect peoples‟ trust in their

government.


The local government confesses that it is not fully prepared to deliberately ensure sustainability of the benefits

derived from the gas development activities over a long term despite the fact that the resource will eventually

exhaust out. There is also fear that the council might ignore other tax avenues (like timber production) and

concentrate on generating revenue from natural gas activities that, once ended, may cause the district a huge

financial stress. However, though unrelated to the deliberate preparedness for the exhaustion of the gas

resource, the local government is currently educating the public on saving money and investing, as well as

bringing experts to assist further on this education component. It also has plans in place to increase the

production of major cash crops (especially cashew nuts and sesame) and other crops like maize and peas. Much

as these efforts are being undertaken outside the equation of preparedness on expiry of the gas resource, they

remain valid and commendable. It is important, however, for the local government to carry out similar plans in

a proactive manner focusing on the framework of the exhaustion of the resource. A long-term plan that is

implemented in the guidance of short- and medium-term plans would be the most ideal approach in preparing

the district for this reality. The regional government, on its side, is aware of this exhaustion and already advises

the national government to manage the situation by ensuring that the gas economy does not affect other sectors

of the economy. It also provides advice on the importance of long-term planning to ensure that revenues

emanating from the gas industry are spent on major investment projects to sustain the benefits or the economy.

As a matter of fact, it has prepared a booklet mapping out the various investment potentials in Lindi to attract

investors to other investment avenues. It also invited a group of German experts to advise the government on

how to improve the fishing industry and other economic sectors within the region. Clearly, the regional

government is deserving of credits for the efforts it is taking in sustaining the economy of the region, even after

81

the gas resource has expired. It is working very closely with the national government in performing this

function. However, the fact that the local government is not deliberately prepared for this scenario signals its

lack of involvement by the regional government. The local government is an active implementer of what is

decided at the central level of government and, therefore, should be part and parcel of the on-going decision-

making and planning efforts at the regional level. Continuing to leave it out of the process will eventually

complicate the effective implementation of the decisions and plans being waged by the central government. A

team-work spirit is absolutely critical in fostering this regional vision. This begins by bringing the local

government to speed on the importance of and manner in which such preparedness should be approached.


Land use conflicts at the local government level are motivated by the fight over natural resources, mainly

natural gas and timber (e.g., in Somanga and Njia Nne villages). Communities are arguing over ownership of

the resources in areas where they share the boundaries. However, most of the conflicts are caused by a failure to

offer compensations to the former land owners. A case in point is the TPDC‟s decision to not provide

compensations since 1984 after taking over 372 acres. Paradoxically, TPDC is a central government agency

under the Ministry of Energy and Minerals (MEM). Land disputes also prevail in areas where the gas pipe

passes, caused by unfair compensation for land-use reassignment and failure to review land use plans for the

respective areas (i.e., another activity had been planned for implementation in the same areas where gas pipes

were later on prioritized). Also, the gas companies, such as TPDC, do not refer to the district council for

appropriate maps of the villages and other areas they would prefer to possess. They simply undertake land

surveys without consulting or working with the district council. This is typical of the conflict between Somanga

and Njia Nne villages, whereby TPDC conducted a land survey and decided that a gas plant will be established

in Njia Nne village while unaware of the fact that the specified land area crosses over into Somanga village.

However, compensation is being guided by the rates developed by the national government. The schedule for

2013 identifies the rates of all types of crops. Also, the compensation rates for houses are also available, varying

depending on the type of houses (i.e., materials used for construction), among other criteria. Compensation for

land depends on the prevailing market value.

The regional government is also confirming on the existence of conflicts over boundary resulting from the

natural resources wealth in the region. Examples include conflicts between the districts of Liwale and Kilwa

over timber as well as Ruangwa and Nachingwea. There is a boundary conflict between Somanga Fungu and

Somanga Simu villages over the timber resource and who should receive the royalties from hosting mobile

network infrastructures. The regional government observes that the disputes are only of a minor magnitude. It

also acknowledges, however, that most of the land disputes are caused by compensation claims given that the

town is expanding. People are complaining that the compensation rates being given, such as by UTT, are lower

than the actual values of their land. Some just fear that their land will be grabbed away by newcomers who are

being lured to the region by the natural gas industry. They need reassurance. Conflicts are also emerging

between farmers and livestock keepers that are also being caused by the influx of newcomers who are putting

more pressure on demand for land and, thereby, drawing the two groups closer to one another. Conflicts also

exist in areas where the natural gas infrastructure is established. Somanga and Tingi villages are quarrelling

over the gas pipe crossing the area from Songosongo to connect with the one running from Mtwara to Dar es

Salaam. Each of the two villages claims the pipe to be passing within its boundaries. The company contracted to

lay down the gas pipe was supposed to provide Tshs 60 million for compensation, which rose a conflict on

which of the two villages deserves it. The two villages are also in a tug of war over their anticipations on who

will benefit from the royalties to be paid by the gas companies since the gas infrastructure utilizes part of the

land crossing over them. Complaints about low compensation rates necessitated re-evaluation to see if the rates

could be increased. Also, after realizing that the complaints on land disputes were mounting, the regional

82

government formed a special land commission and made a public announcement to encourage people to submit

their complaints on various land issues. Also, while a preferred means would be to use legal guidance to control

and resolve land issues, its shortcomings are blatant. The Village Land Act no. 5 of 1999 empowers village

governments to allocate land to people without having to consult any other authority. This legal freedom causes

conflicts because most people at the grass root level are poor and illiterate. Some investors bait them with

money to authorize pitiable deals, thereby provoking misunderstandings with fellow villagers. What‟s more is

that these deals do not involve the district and regional land officers, thereby contradicting their initial plans

about the use of village lands. A good example of this problem can be cited to the Ruvu hamlet in Mchinga 2

village, in Lindi district.

The history of the land disputes in the region implicates the national government. TPDC and UTT are national

government organs being cited for instigating the dominant compensation claims from members of the public.

TPDC is even blamed for by-passing the local government authorities in surveying and allocating land to gas

companies. This is in contrary to what people expect of their national government. The pressure caused by

TPDC and UTT are largely being shifted to the local and regional governments. This is an obvious call for the

national government to re-examine its role in causing land conflicts, as opposed to preventing them in the first

place. The starting point could be to review the related policies and acts, as well as state clearly the authority

and limitation of each level of government regarding land matters. The government should, all together and

harmoniously, always work as a team to serve the people instead of confusing and disappointing them. The fact

that the Village Land Act no. 5 of 1999 is put to blame may necessitate its immediate review. The government

also needs to reassure the residents of Lindi that newcomers will not take their land by force. This should be

done rather urgently to avoid provoking undesirable reaction from them. Efforts should also be centered on

addressing and avoiding the emerging land disputes between farmers and livestock keepers. Other parts of the

country, especially Morogoro, have revealed how terrible such conflicts can turn out to be.


Local government officials confess to their lack of expertise in identifying whether or not the exploration of

natural gas has caused social and environmental impacts in the communities within the district. However, they

acknowledged dumping of chemical substances in residential areas and other areas frequently accessed by

community members. Meanwhile, community members of Songosongo are protesting against this practice

fearing it might cause harm to them and their environment. The regional government also confesses to not

knowing the impacts, referring that such awareness would be prevalent among the local government officials of

Kilwa Masoko and the residents of Songosongo. It confirms of the presence of procedures outlined by the

government to ensure that such impacts are avoided/controlled. The regional government refers to TPDC, who

is the sole owner of the gas wells in Songosongo, as the government agency that is fully responsible for

ensuring that gas activities are conducted in a manner that safeguards the environment and people.

Nevertheless, it observes that some time ago the gas wells exploded and the fire stayed on for about a week

until firemen from India arrived to extinguish it. The fact that the two levels of government are ignorant of and,

consequently, fail to monitor the social and environmental impacts of gas exploration activities is, by itself, a

threat to the general public concerning their social well-being and that of the environment. What is even worse

is that the national government, through its custodian for petroleum development (TPDC), seems unconcerned

about the dumping of toxic chemicals in the residential and public areas of Songosongo. As the regional and

local levels of government remain ignorant of the subject matter, and as the national government seems

inattentive to the same, the people of Songosongo are complaining that gas activities are harming them and their

environment. If drastic measures are not taken to rectify the situation, the gas industry is likely to be branded as

an unsustainable economic pathway. The national government must act fast to fully play its role as the

custodian of the environment and actively engage the regional and local governments in the process. A staring

83

point could be for all the levels of government to understand that social and environmental impacts are not a

new phenomenon in gas operations. The central government should ensure that the lower levels of government

are aware of such impacts and solidly engage them in preventing and addressing them. This engagement must

be backed up with the offering of relentless capacity building programs. The capacity of TPDC to perform this

role should also be reviewed and, even more importantly, its suitability to actually perform the role be

reconsidered. This is because TPDC is the owner of gas wells in Songosongo and, at the same time, custodian

of the environment. These roles are contradictory and, therefore, a different national agency should take over

the responsibility of safeguarding the environment. National and international advocacy groups should also play

part in pushing the government to manage the situation proactively instead of waiting until problems emerge.

While NEMC appears to be the most appropriate government organ to address this gap, the fact that it oversteps

the Kilwa district council in conducting its studies and sharing related findings implies a big problem. However,

whether or not NEMC takes on the environmental oversight role from TPDC, it must put right its relationship

with the Kilwa district council, which should be fully engaged in environmental awareness and management

aspects of the natural gas industry in its jurisdiction.


The district council of Kilwa Masoko is undertaking various initiatives towards preparing the local

entrepreneurs to benefit from growing business opportunities in the region, fuelled by the natural gas industry. It

is providing them with education on registering/formalizing their businesses so that they are able to serve the

gas companies and the government. Land is also being allocated to entrepreneurs for investment purposes, such

as building accommodation infrastructures. The government has also allocated a specific land area to informal,

small-scale businesses. Nevertheless, the government faces the challenge of compensating those affected.

However, efforts are promising and, hopefully, this plan will be executed. Another challenge is vested in the

entrepreneurs themselves in that they are poorly educated and are, therefore, skeptical of the advice being given

to them by the government.

The regional government provides education on entrepreneurship and taxation issues on an on-going basis. It

has also attracted banks and micro-finance institutions to the region to bring the entrepreneurs closer to credit

facilities. The entrepreneurs are also being educated on and encouraged to partake in numerous business

opportunities being introduced by the gas industry (e.g., food supply and accommodation services). The

regional government is hosting the annual Nane Nane events for three consecutive years (2014, 2015 and 2016).

The goal is to boost peoples‟ awareness of the various investment and entrepreneurship opportunities linked to

natural gas. Public-private partnership (PPP) projects are also being spearheaded by regional leaders (e.g., UTT

is working with the local residents as it buys and surveys land plots for sale). People are being educated on how

to effectively utilize PPP projects. There is no platform, however, for the residents to engage and negotiate with

investors to improve their win-win arrangements. This could take the form of, for example, a resident providing

land to an investor who begins to pay rents after recovering investment costs.

Efforts by the local and regional governments in educating and building the capacities of the entrepreneurs are

cogent and constructive. The district council of Kilwa Masoko should emulate important lessons from the

regional government in its efforts to educate the local entrepreneurs. Also, a partnership between the two levels

of government can take the form of field visits to enable the local entrepreneurs of Kilwa Masoko to learn from

their counterparts in the region. This could be an effective approach of educating the entrepreneurs from the

district since they are not readily absorbent of advice from their local government. The two levels of

government can also acquire further lessons from other regions. For instance, it is advisable for them to take

lessons on the Mtwara Development Cooperation (MDC) and Mtwara Development Fund (MDF) initiatives.

84

References

Ernst & Young (2012). Natural Gas in Africa: the Frontiers of the Golden Age. EYGM limited.

Harford, E. (2012). Natural Gas Extraction: Is It Really a Clean Alternative? Posted in Earth SOS,

Environmental Issues. Retrieved from http://earthreform.org/natural-gas-extraction-is-it-really-a-clean-

alternative/.

Korpela, S. (2007). Oil and Natural Gas Depletion and Our Future: Oil Depletion in the United States and the

World. Published in Energy Bulletin by Relocalization Network. Retrieved from

http://www.energybulletin.net/stories/2007-07-21/oil-and-natural-gas-depletion-and-our-future.

Lloyd, M. (2012). Natural Gas Drilling: Questions Residents and Local Leaders Should Be Asking. Ohio State

University, CDF-1282-12. Retrieved from http://ohioline.osu.edu/cd-fact/pdf/1282.pdf.

Ministry of Energy and Minerals (MEM) of the United Republic of Tanzania (2013). The Natural Gas Policy of

Tanzania.

Mutch, T. (2012). East African Oil and Gas: A Lack of Critical Analysis Leaves Local People Isolated.

Published in African Arguments. Retrieved from http://africanarguments.org/2012/08/13/east-african-

oil-and-gas-a-lack-of-critical-analysis-leaves-local-people-isolated-by-thembi-mutch/.

National Bureau of Statistics (2012). 2012 Population and Housing Census and Population Estimation based on

2012 Population and Housing Census.

National Bureau of Statistics of Tanzania (March 2013). Population Distribution by Administrative Units. 2012

Population and Housing Census, Volume 1. Ministry of Finance (Tanzania) and Office of Chief

Government Statistician (Zanzibar).

National Bureau of Statistics of Tanzania (September 2013). Population Distribution by Age and Sex. Retrieved

from http://digitallibrary.ihi.or.tz/2169/1/Age_Sex_Distribution.pdf.

NaturalGas.org (2011). Uses in Industry. Retrieved from

http://www.naturalgas.org/overview/uses_industry.asp.

Neureiter, K. (2012). Reserving Judgement on Tanzania’s Natural Gas Discoveries. Published in Think Africa

Press. Retrieved from http://thinkafricapress.com/tanzania/nascent-gas-industry-potential-or-

potentially-dangerous-430billion.

Rorke, C. (2012). Natural Gas Could Herald Economic Growth. Published in National Journal. Retrieved from

http://energy.nationaljournal.com/2012/09/sizing-up-the-role-of-natural.php.

University of Michigan (n.d.). The Curse of Oil in Ogoniland. Retrieved from

http://www.umich.edu/~snre492/cases_03-04/Ogoni/Ogoni_case_study.htm.

Vences, V. (2006). The Camisea Gas Project: A Multi-Stakeholder Perspective on Conflicts & Negotiation.

Retrieved from http://crgp.stanford.edu/publications/working_papers/vences.pdf.

http://earthreform.org/natural-gas-extraction-is-it-really-a-clean-alternative/

http://earthreform.org/natural-gas-extraction-is-it-really-a-clean-alternative/

http://www.energybulletin.net/stories/2007-07-21/oil-and-natural-gas-depletion-and-our-future

http://ohioline.osu.edu/cd-fact/pdf/1282.pdf

http://africanarguments.org/2012/08/13/east-african-oil-and-gas-a-lack-of-critical-analysis-leaves-local-people-isolated-by-thembi-mutch/

http://africanarguments.org/2012/08/13/east-african-oil-and-gas-a-lack-of-critical-analysis-leaves-local-people-isolated-by-thembi-mutch/

http://digitallibrary.ihi.or.tz/2169/1/Age_Sex_Distribution.pdf

http://www.naturalgas.org/overview/uses_industry.asp

http://thinkafricapress.com/tanzania/nascent-gas-industry-potential-or-potentially-dangerous-430billion

http://thinkafricapress.com/tanzania/nascent-gas-industry-potential-or-potentially-dangerous-430billion

http://energy.nationaljournal.com/2012/09/sizing-up-the-role-of-natural.php

http://www.umich.edu/~snre492/cases_03-04/Ogoni/Ogoni_case_study.htm

http://crgp.stanford.edu/publications/working_papers/vences.pdf

85

Appendices

Appendix A: Survey instrument for household interviews

ECONOMIC AND SOCIAL RESEARCH FOUNDATION

(ESRF)

51 Uporoto Street, (Off Alli Hassan Mwinyi Road), Ursino Estates P.O Box 31226 Dar es Salaam, Tanzania

Phone: (255-22) 2760260,2760751/2, 2760758 Mobile: : (255-754) 787-715 780133, 0777-790133 Fax: : (255-22) 2760062

Email: [email protected] Web: www.esrf.or.tz

Dodoso la Utafiti kwa Kaya

Project Title: Effective Management of the Development and Extraction of Natural Gas in Tanzania for a

Sustainable and Inclusive Socio-Economic Impact

Tarehe ya usaili: _________________________

Habari.

Jina langu ni _____ Ninafanya kazi katika Taasisi ya Utafiti wa Sera za Kiuchumi na Kijamii kama ________.

Taasisi inatekeleza mradi wa kitaifa wa utafiti wenye lengo la kukusanya taarifa na uelewa vitakavyotumika

katika kufuatilia na kutathmini faida na madhara yanayohusiana na uchimbaji wa gesi asili nchini Tanzania.

Mradi huu wa utafiti unalenga zaidi kuchunguza ushirikishwaji na uendelevu wa kiuchumi wa sekta ya gesi asili

na kusaidia uelewa aidi wa faida na madhara kufuatana na ushiriki na matarajio ya wadau. Tunathamini

kutupatia muda na mchango wa uelewa wako katika kufanikisha lengo hili.

TAARIFA ZA AWALI:

1.0 Jina la mkuu wa kaya: .................................................................................................................

2.0 Makazi:

2.1 Mkoa:....................................................... 2.2 Wilaya:.................................................................

2.3 Kata:.............................. 2.4 Kijiji:................................. 2.5 Kitongoji:.....................................

mailto:[email protected]

http://www.esrf.or.tz/

86

Hali ya Kijamii

3. Jinsia: Mwanaume Mwanamke

4. Umri:

Kundi Rika (zungushia jibu sahihi)

15 au

pungufu

16

-

20

21

-

25

26

-

30

31

-

35

36

-

40

41

-

45

46

-

50

51

-

55

56

-

60

61

-

65

65+

5. Kiwango cha juu cha elimu:..............................................................................................................

6. Shughuli za Kiuchumi:

Shughuli inayoingiza

kipato kikubwa zaidi kwa

kaya

Shughuli nyinginezo

zinazoingiza kipato cha

ziada kwa kaya

Idadi ya wanakaya

wanaohusika

(mbali na mhojiwa)

7. Nini wastani wa kipato chako kwa siku?...........................................................................................

8. Idadi ya wategemezi: .........................................................................................................................

9. Hali ya nyumba:

9.1 Aina ya kuta: ...................... 9.2 Aina ya paa: ......................... 9.3 Aina ya sakafu: .........................

87

Hali ya Miundombinu ya Kijamii

i. Huduma za Maji

10. Hali ya ubora wa maji kwa matumizi ya binadamu:

Nzuri Wastani Mbaya Sifahamu

11. Upatikanaji wa maji ya kunywa na matumizi mengine ya nyumbani kwa kutembea:

Matumizi ya Maji Karibu

(wastani wa muda)

Mbali kiasi

(wastani wa muda)

Mbali sana

(wastani wa muda)

Kunywa

Matumizi mengine ya nyumbani

12. Nini vyanzo vya maji?

12.1 Kunywa: ..........................................................................................................................................

12.2 Matumizi mengine ya nyumbani: ...................................................................................................

ii. Nishati

13.1Nini chanzo/vyanzo vya nishati kwenye kaya yako?(weka √ kwenye ma/jibu sahihi)

Umeme Mkaa Kuni Mafuta ya taa Kingine

(bainisha)

13.2 Kati ya hivyo ulivyotaja, kipi ni chanzo kikuu: ..............................................................................

88

13.3 Kama unatumia umeme, nini tathmini ya gharama za nishati hiyo?

Gharama Kubwa Wastani Ndogo Sifahamu

Uunganishaji

Malipo ya matumizi

13.4 Nini uelewa wako kuhusu gesi asili kwa matumizi ya nyumbani?

...........................................................................................................................................................

...........................................................................................................................................................

...........................................................................................................................................................

iii. Hali ya Ulinzi na Usalama

14. Nini tathmini yako ya hali ya ulinzi na usalama katika jamii yako?

Shwari Shwari kiasi Si Shwari

Tafadhali fafanua jibu lako kuhusu hali ya usalama kijijini/katika jamii:

................................................................................................................................................................

................................................................................................................................................................

................................................................................................................................................................

iv. Miundombinu ya Usafirishaji

15. Je, barabara zinapitika katika vipindi vyote vya mwaka?

Ndio.

Eleza: …………………………………………………………………………………………….

Hapana.

Eleza: …………………………………………………………………………………………….

89

v. Masuala ya Kijamii, Kiuchumi na Kimazingira

16. Unadhani kutakuwa na mabadiliko yoyote katika maeneo yafuatayo kutokana na maendeleo katika

sekta ya gesi asili?

a. Idadi ya watu:

Ndio. Elezea: ...................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

b. Magonjwa na maradhi:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

c. Ajira:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

d. Huduma za maji:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

e. Huduma ya umeme:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

90

f. Huduma ya elimu:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

g. Huduma za afya:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

h. Ulinzi na usalama:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

i. Huduma za malazi:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

j. Barabara:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

k. Reli:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

91

l. Usafiri wa anga:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

m. Bandari :

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

n. Utamaduni:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

o. Utawala wa serikali wa mapato na matumizi yahusuyo sekta ya gesi asili:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

p. Kilimo cha mazao:

Ndio. Elezea: ...................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

q. Ufugaji:

Ndio. Elezea: ...................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

92

r. Uvuvi:

Ndio. Elezea: ...................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

s. Biashara:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

t. Matumizi ya ardhi:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

u. Mazingira:

Ndio. Elezea: ..................................................................................................................

Hapana. Elezea: ...............................................................................................................

Sifahamu. Elezea: ............................................................................................................

17. Je, unadhani serikali na makampuni ya gesi yana wajibu gani katika kuleta maendeleo kutokana na

uchumi wa gesi asili?

a) Serikali:

...................................................................................................................................................

...................................................................................................................................................

b) Wawekezaji:

.........................................................................................................................................................

.........................................................................................................................................................

93

18. Nini wajibu wako katika kuisaidia serikali kutekeleza wajibu wake?

.........................................................................................................................................................

.........................................................................................................................................................

19. Ni kwa namna gani serikali inawapatia wananchi taarifa kuhusu shughuli mbali mbali za utafutaji

na uchimbaji wa gesi katika jamii yako?

............................................................................................................................................................

............................................................................................................................................................

20. Nini uzoefu wa wananchi kuhusiana na utolewaji wa fidia kwa waathirika wa miradi ya utafutaji

na uchimbaji wa gesi asili?

............................................................................................................................................................

............................................................................................................................................................

21. Je, kuna migogoro katika matumizi ya ardhi baina ya wawekezaji katika sekta ya gesi asili na

wanajamii?

Ndio

Eleza:...............................................................................................................................................

Hapana

Eleza:................................................................................................................................................

Sifahamu

Eleza:...............................................................................................................................................

22. Endapo kuna migogoro, unapendekeza nini kifanyike kukomesha migogoro hii?

......................................................................................................................................................

23. Je, kuna migogoro mingine katika matumizi ya ardhi mbali na ile ya wananchi na wawekezaji

katika sekta ya gesi?

Ndio

Eleza:...............................................................................................................................................

Hapana

Eleza:...............................................................................................................................................

.

Sifahamu

Eleza:...............................................................................................................................................

94

24. Nini athari za ulipuaji wakati wa shughuli za utafutaji wa gesi asili?

............................................................................................................................................................

............................................................................................................................................................

25. Nini uzoefu wa wananchi hadi sasa kuhusiana na athari za kimazingira:

a. Wakati wa utafutaji wa gesi asili?

......................................................................................................................................................

......................................................................................................................................................

b. Wakati wa uchimbaji wa gesi asili?

......................................................................................................................................................

......................................................................................................................................................

Ahsante sana kwa ushiriki na

mchango wako muhimu katika utafiti huu.

95

Appendix B: Survey instrument for interviews with entrepreneurs


(ESRF)


Phone: (255-22) 2760260,2760751/2, 2760758 Mobile: : (255-754) 787-715 780133, 0777-790133 Fax: : (255-22) 2760062


Dodoso la Utafiti kwa Wafanyabiashara



Tarehe ya usaili: _________________________

Habari.

Jina langu ni ______. Ninafanya kazi katika Taasisi ya Utafiti wa Sera za Kiuchumi na Kijamii kama ______.

Taasisi inatekeleza mradi wa kitaifa wa utafiti wenye lengo la kukusanya taarifa na uelewa vitakavyotumika

katika kufuatilia na kutathmini faida na madhara yanayohusiana na uchimbaji wa gesi asili nchini Tanzania.

Mradi huu wa utafiti unalenga zaidi kuchunguza ushirikishwaji na uendelevu wa kiuchumi wa sekta ya gesi asili

na kusaidia uelewa aidi wa faida na madhara kufuatana na ushiriki na matarajio ya wadau. Tunathamini

kutupatia muda na mchango wa uelewa wako katika kufanikisha lengo hili.

TAARIFA ZA AWALI:

1. Jina la mhojiwa: ...........................................................................................................................

2.0 Makazi:

2.1 Mkoa:......................................................... 2.2 Wilaya:..............................................................

2.3 Kata:............................... 2.4 Kijiji:.................................. 2.5 Kitongoji:...................................


http://www.esrf.or.tz/

96

Hali ya Kijamii

3. Jinsia: Mwanaume Mwanamke

4. Umri:

Kundi Rika (zungushia jibu sahihi)

15 au

pungufu

16

-

20

21

-

25

26

-

30

31

-

35

36

-

40

41

-

45

46

-

50

51

-

55

56

-

60

61

-

65

65+

5. Kiwango cha juu cha elimu yako:......................................................................................................

6. Ni shughuli ipi kati ya ulizotaja inaingizia kipato kikubwa zaidi? ...................................................

7. Nini chanzo cha / vyanzo vya mtaji kwa ajili ya biashara inayoingiza kipato kikubwa zaidi?

............................................................................................................................................................

8. Ni changamoto gani ulizonazo katika kuongeza ukubwa wa biashara inayoingiza kipato kikubwa

zaidi?

............................................................................................................................................................

............................................................................................................................................................

9. Je, wewe ni mmiliki wa hii biashara inayoingiza kipato kikubwa zaidi?

Ndio Hapana

10. Nini jumla ya idadi ya waajiriwa katika biashara inayoingiza kipato kikubwa zaidi?

Kikomo cha watu 4 (micro-enterprise – majority are informal)

Kati ya watu 5 na 50 (small enterprise)

Kati ya watu 51 na 100 (medium enterprise)

Zaidi ya watu 100

Sifahamu

97

11. Nini kiasi cha uwekezaji wa mtaji katika biashara inayoingiza kipato kikubwa zaidi?

Kikomo cha sh. 5 milioni (micro-enterprise – majority are informal)

Kati ya sh. 5.1 milioni na sh. 200 milioni (small enterprise)

Kati ya sh. 201 milioni na sh. 800 milioni (medium enterprise)

Zaidi ya sh. 800 milioni

Sifahamu

12. Nini wastani wa kipato cha biashara hii kwa siku?...........................................................................

Hali ya Miundombinu ya Kijamii

i. Nishati

13.1 Nini chanzo kikuu cha nishati katika uendeshaji wa biashara inayoingiza kipato kikubwa?

..................................................................................................................................................................

13.2 Endapo unatumia umeme katika biashara inayoingizia kipato kikubwa, nini tathmini yako juu ya

gharama za nishati hiyo?

Gharama Kubwa Wastani Ndogo Sifahamu

Uunganishaji

Malipo ya matumizi

13.3 Endapo unatumia umeme katika biashara inayoingizia kipato kikubwa, nini uzoefu wako kuhusu

upatikanaji wa umeme na mchango wake kwa mafanikio ya biashara?

...........................................................................................................................................................

...........................................................................................................................................................

98

ii. Hali ya Ulinzi na Usalama

14.Nini tathmini yako ya hali ya ulinzi na usalama wa kibiashara?

Shwari Shwari kiasi Si Shwari

Tafadhali fafanua jibu lako kuhusu hali ya ulizi na usalama wa kibiashara:

...........................................................................................................................................................

iii. Miundombinu ya Usafirishaji

15. Je, barabara zinapitika katika vipindi vyote vya mwaka?

Ndio.

Eleza:....................................................................................................................................

Hapana.

Eleza:.....................................................................................................................................

Masuala ya Kijamii, Kiuchumi na Kimazingira

16.1 Je, unadhani serikali na makampuni ya gesi wanapaswa kufanya nini kufanikisha ukuaji na

maendeleo ya kibiashara?

a) Serikali: ..................................................................................................................................

b) Wawekezaji:.................................................................................................................................

16.2 Nini wajibu wako katika kusaidia serikali kutekeleza wajibu wake?

.........................................................................................................................................................

Ahsante sana kwa ushiriki na

mchango wako muhimu katika utafiti huu.

99

Appendix C: A focus group discussions guide


(ESRF)


Phone: (255-22) 2760260,2760751/2, 2760758 Mobile: : (255-754) 787-715 780133, 0777-790133 Fax: : (255-22) 2760062


Mwongozo wa Mjadala wa Vikundi – Serikali za Mkoa na Mitaa



Tarehe ya usaili: _________________________

Salamu ya utambulisho.

Taasisi inatekeleza mradi wa kitaifa wa utafiti wenye lengo la kukusanya taarifa na uelewa

vitakavyotumika katika kufuatilia na kutathmini faida na madhara yanayohusiana na uchimbaji wa

gesi asili nchini Tanzania. Mradi huu wa utafiti unalenga zaidi kuchunguza ushirikishwaji na

uendelevu wa kiuchumi wa sekta ya gesi asili na kusaidia uelewa aidi wa faida na madhara kufuatana

na ushiriki na matarajio ya wadau. Tunathamini kutupatia muda na mchango wa uelewa wako katika

kufanikisha lengo hili.


100

Maswali ya Utafiti

1. Kuna mipango na mikakati gani ya kuwanufaisha wananchi na miradi ya gesi asili? Wananchi

wanahusishwa vipi kuamua na kuandaa mipango na mikakati hii? Kuna mipango na mikakati gani

kuwawezesha wananchi wa mkoa huu kufaidika na ajira katika sekta ya gesi asili?

2. Serikali za Mitaa zinashirikishwa vipi na ngazi nyingine za serikali katika kufanya na kutekeleza

maamuzi yahusuyo sekta ya gesi asili? Je, ushirikishwaji huo unatosheleza kwa kiasi gani na nini

kifanyike, endapo kuna haja, ili kuboresha ushirikishwaji wa Serikali za Mitaa?

3. Serikali za Mitaa zimejiandaa vipi kudhibiti matarajio ya wananchi kupata manufaa ya haraka wakati

uwekezaji unaofanywa na makampuni ya gesi asili hautawapatia faida kwa haraka?

4. Serikali za Mitaa zimejiandaa vipi kudhibiti mapato yatokanayo na gesi asili ili kujizatiti kifedha na

kutoa huduma za jamii?

5. Mapato yanayotokana na miradi ya maendeleo ya gesi asili yanawekwa wazi kwa wanajamii?

Matumizi ya mapato husika yanawekwa wazi kwa wanajamii? Uwazi wa mapato na matumizi

unahakikishwa vipi? Kama hakuna uwazi kuhusu mapato na/au matumizi, sababu ni zipi?

6. Serikali za Mitaa zinajizatiti vipi kuendeleza manufaa yanayopatikana kutokana na hatua mbalimbali

za miradi ya gesi asili sasa na baada ya kuisha kwa mradi?

7. Nini historia ya migogoro inayotokana na matumizi ya ardhi katika wilaya na jamii?

8. Je, kumekuwa na migogoro ya matumizi ya ardhi katika maeneo ambamo gesi asili imegunduliwa? Je,

kumekuwa na migogoro ya matumizi ya ardhi katika maeneo ambamo miundombinu ya gesi asili

imejengwa?

9. Nini athari za ulipuaji kwa wananchi na mazingira?

10. Taratibu za kuwalipa fidia wananchi mbali mbali wanaoathirika na miradi ya utafutaji na uvunaji wa

gesi asili ukoje? Taratibu hizi zina changamoto gani? Nini maoni ya wananchi kuhusu taratibu hizi?

11. Je, wajasiriamali wamejiandaa vipi kufaidika na ongezeko la mahitaji ya bidhaa na huduma (kama vile

usafirishaji, malazi, usalama, afya, na elimu) kutokana na kukua kwa uchumi na ongezeko la idadi ya

watu vinavyotokana na miradi ya maendeleo ya gesi asili?

Ahsanteni sana kwa ushiriki na

mchango wenu muhimu katika utafiti huu.

101

Appendix D: A summary of assorted economic and social (education and health)

information and data from the District Commissioner offices of the Mtwara district

council (hosting the Mtwara rural district) and Kilwa Masoko

A: Mtwara District Council (hosting Mtwara Rural District)

Total number of animals at the end of 2013:

Cattle Goats Sheep Chickens Ducks Pigs Dogs 5518 44348 3610 155395 708 55 1387

The average number of students joining school in the past five years (2009 – 2013):

Level of education Average number joining

school

Pre-school 29240

Primary school 254110

Secondary school (form I-IV) 14520

Secondary school (form V-VI) -

College 241

University -

Current number and ownership of education institutions:

Type of academic institute Government-

owned Privately-owned

(excluding religious

institutions)

Privately-owned

(only religious

institutions) Pre-school 129 1 1 Primary school 129 - - Secondary school (form I-IV) 21 - 1 Secondary school (form V-VI) - - - College 1 - - University - - -

102

Are the academic institutions positioned to deliver on their roles effectively?

Type of academic institute Positioned to deliver?

Explanation Yes Somehow No

Pre-school √ Every primary school has a pre-

school program. Primary school √ All the children in need of joining

primary school find room. Secondary school (form I-

IV) √ Most wards have these schools.

Secondary school (form V-

VI) √ These schools do not exist in the

district. College √ There is only one technical college

in the district. University √ There is no university in the

district.

Average number of students discontinuing with education in the past five years (2009 – 2013) and

associated reasons:

Level of education

Average number

of students

discontinuing

Reasons # %

Primary school 1205 5% Pregnancies and challenging economic

conditions (poverty). Secondary school (form I-IV) 1452 10% Pregnancies, prolonged absenteeism, and

early marriages. Secondary school (form V-VI) - - -

Three major diseases that affected men and women in the past five years (2009 2013):

Year

Major diseases affecting men Major diseases affecting women

Type of disease Number affected Type of disease Number affected

2013

i. Malaria

ii. Diarrhea

iii. Air-borne diseases

21235 15420 8740

i. Malaria

ii. Ischemia

iii. Diarrhea

29140 9347 9432

NB: Data for previous years was not available.

103

Three major diseases that affected people by age type, and number of those affected, in 2013:

a. Three major diseases affecting the children (0-5 years) in 2013 by total in brackets

i. Malaria (27348)

ii. Air-borne diseases (17648)

iii. Diarrhea (3462)

b. Three major diseases affecting other people (6+ years) in 2013 by total in brackets

i. Malaria (19503)

ii. Diarrhea (11017)

iii. Ischemia (7984)

Number and ownership of medical institutes at the end of 2013:

Type of medical

institute Government-


(excluding

religious

institutions)

Privately-

owned (only

religious

institutions) Dispensaries 43 - 1 Health centers 4 - - Hospitals - - -

Are the medical institutes sufficient?

Type of medical

institute Yes Somehow No

Dispensaries √ Health centers √ Hospitals √

104

B: Kilwa Masoko District – Lindi Region

Total number of animals at the end of 2013:

Cattle Goats Sheep Chickens Ducks Pigs Dogs - 2324 975 180000 80410 0 860

The average number of students joining school in the past five years (2009 – 2013):

Level of education Average number joining

school

Pre-school 3296

Primary school 38795

Secondary school (form I-IV) 5275

Secondary school (form V-VI) -

College -

University -

Current number and ownership of education institutions:

Type of academic institute Government-


(excluding religious

institutions)

Privately-owned

(only religious

institutions) Pre-school 103 - 1 Primary school 104 - - Secondary school (form I-IV) 27 1 1 Secondary school (form V-VI) - - - College - - - University - - -

105

Are the academic institutions positioned to deliver on their roles effectively?

Type of academic institute Positioned to deliver?

Explanation Yes Somehow No

Pre-school √ -

Primary school √ -

Secondary school (form I-IV) √ -

Secondary school (form V-

VI) √

College

University √

Average number of students discontinuing with education in the past five years (2009 – 2013) and

associated reasons:

Level of education

Average number

of students

discontinuing

Reasons # %

Primary school 702 1.8% Prolonged absenteeism, pregnancies, deaths,

diseases, taking care of the sick, and

challenging economic conditions (poverty). Secondary school (form I-IV) 213 4% Prolonged absenteeism, pregnancies,

illiteracy and poverty of parents, and

diseases. Secondary school (form V-VI) - - -

Three major diseases that affected men and women in the past five years (2009 2013):

Year

Major diseases affecting men Major diseases affecting women

Type of disease Number affected Type of disease Number affected

2009

i. Pneumonia

ii. Malaria

iii. Pneumonia

5937 4663 4672

i. Pneumonia

ii. Malaria

iii. Warms

6023 5917 4861

2010

i. Malaria

ii. Warms

iii. Pneumonia

5416 4107 3962

i. Malaria ii. Warms

iii. Pneumonia

5681 4017 4016

2011

i. Malaria

ii. Pneumonia

iii. __________

4506 4766

____________

i. Malaria

ii. Pneumonia

iii. __________

4596 4928

____________

106

2012

i. Pneumonia

ii. Malaria

iii. __________

4582 1801

____________

i. Pneumonia

ii. Malaria

iii. Warms

3439 2221 2138

2013

i. Pneumonia

iv. Malaria

v. __________

6610 3352

____________

iv. Pneumonia

v. Malaria

vi. Warms

6459 3991 1828

Three major diseases that affected people by age type, and number of those affected, in 2013:

a. Three major diseases affecting the children in 2013 by total in brackets

i. Malaria (5589)

ii. Pneumonia (3357)

iii. Diarrhea (4361)

b. Three major diseases affecting the youth in 2013 by total in brackets

i. Pneumonia (5761)

ii. Malaria (3105)

iii. ____________

c. Three major diseases affecting the adults (expect the aged) in 2013 by total in brackets

i. Pneumonia (4669)

ii. Malaria (2012)

iii. ____________

d. Three major diseases affecting the aged in 2013 by total in brackets

i. Pneumonia (4467)

ii. Malaria (1226)

iii. ____________

107

Number and ownership of medical institutes at the end of 2013:

Type of medical

institute Government-


(excluding

religious

institutions)

Privately-

owned (only

religious

institutions) Dispensaries 40 1 1 Health centers 5 - - Hospitals 1 - 1

Are the medical institutes sufficient?

Type of medical institute Yes Somehow No

Dispensaries √

Health centers √

Hospitals √

108

Appendix E: Current and projected population statistics of Mtwara region, Mtwara

district council, Nanguruwe ward and Madimba ward

Mtwara Region: Population size (2012 census) 1,270,854 Size of male population (2012 census) 599,648 Size of female population (2012 census) 671,206 Population composition by age groups (2012 census): 0 to 5 201,110 6 to 10 168,346 11 to 15 144,496 16 to 20 107,959 21 to 25 93,520 26 to 30 96,019 31 to 35 80,912 36 to 40 79,966 41 to 45 57,477 46 to 50 53,439 51 to 55 42,278 56 to 60 39,078 61 to 65 30,425 66+ 75,829 Projections of population change from 2014 to 2017 (2012 census): 2014 Male 617,127 2014 Female 690,770 Projected total 1,307,897 2015 Male 624,725 2015 Female 699,275 Projected total 1,324,000 2016 Male 632,416 2016 Female 707,884 Projected total 1,340,300 2017 Male 640,202 2017 Female 716,600 Projected total 1,356,802

Mtwara District Council: Population size (2012 census) 228,003 Size of male population (2012 census) 107,922 Size of female population (2012 census) 120,081 Population composition by age groups (2012 census): 0 to 5 37,981 6 to 10 32,537 11 to 15 26,276 16 to 20 18,682 21 to 25 14,818 26 to 30 16,097 31 to 35 13,527 36 to 40 14,358

109

41 to 45 10,297 46 to 50 10,053 51 to 55 7,636 56 to 60 7,483 61 to 65 5,181 66+ 13,077 Projections of population change from 2014 to 2017 (2012 census): 2014 Male 111,068 2014 Female 123,581 Projected total 234,649 2015 Male 112,435 2015 Female 125,103 Projected total 237,538 2016 Male 113,819 2016 Female 126,643 Projected total 240,462 2017 Male 115,221 2017 Female 128,202 Projected total 243,423 Nanguruwe Ward: Population size (2012 census) 6,213 Size of male population (2012 census) 2,954 Size of female population (2012 census) 3,259 Population composition by age groups (2012 census): 0 to 5 1,001 6 to 10 883 11 to 15 684 16 to 20 483 21 to 25 414 26 to 30 466 31 to 35 337 36 to 40 386 41 to 45 274 46 to 50 289 51 to 55 216 56 to 60 165 61 to 65 157 66+ 544

Madimba Ward: Population size (2012 census) 13,139 Size of male population (2012 census) 6,223 Size of female population (2012 census) 6,916 Population composition by age groups (2012 census): 0 to 5 2,196 6 to 10 1,861 11 to 15 1,476 16 to 20 1,124 21 to 25 917 26 to 30 965

110

31 to 35 758 36 to 40 790 41 to 45 575 46 to 50 549 51 to 55 386 56 to 60 407 61 to 65 285 66+ 850

N.B: Population projections are not available at ward level.

Sources: National Bureau of Statistics (March 2013), National Bureau of Statistics (September 2013)&National

Bureau of Statistics (2012).

111

Appendix F: Current and projected population statistics of Lindi region, Kilwa Masoko

district and Songosongo ward

Lindi region: Population size (2012 census) 864,652 Size of male population (2012 census) 414,507 Size of female population (2012 census) 450,145 Population composition by age groups (2012 census): 0 to 5 136,760 6 to 10 119,497 11 to 15 100,691 16 to 20 72,964 21 to 25 63,111 26 to 30 66,551 31 to 35 55,955 36 to 40 54,316 41 to 45 37,286 46 to 50 40,963 51 to 55 25,170 56 to 60 25,061 61 to 65 17,878 66+ 48,449 Projections of population change from 2014 to 2017 (2012 census): 2014 Male 423,688 2014 Female 460,116 Projected total 883,804 2015 Male 427,660 2015 Female 464,429 Projected total 892,089 2016 Male 431,669 2016 Female 468,782 Projected total 900,451 2017 Male 435,716 2017 Female 473,177 Projected total 908,892 Kilwa Masoko district: Population size (2012 census) 190,744 Size of male population (2012 census) 91,661 Size of female population (2012 census) 99,083 Population composition by age groups (2012 census): 0 to 5 35,828 6 to 10 29,529 11 to 15 23,342 16 to 20 17,456 21 to 25 14,167 26 to 30 14,911 31 to 35 10,960 36 to 40 10,586 41 to 45 6,944

112

46 to 50 7,703 51 to 55 4,005 56 to 60 4,093 61 to 65 2,736 66+ 9,738 Projections of population change from 2014 to 2017 (2012 census): 2014 Male 93,691 2014 Female 101,278 Projected total 194,969 2015 Male 94,570 2015 Female 102,227 Projected total 196,797 2016 Male 95,456 2016 Female 103,185 Projected total 198,641 2017 Male 96,351 2017 Female 104,153 Projected total 200,504 Songosongo ward: Population size (2012 census) 3,026 Size of male population (2012 census) 1,634 Size of female population (2012 census) 1,392 Population composition by age groups (2012 census): 0 to 5 433 6 to 10 323 11 to 15 301 16 to 20 355 21 to 25 326 26 to 30 408 31 to 35 226 36 to 40 222 41 to 45 114 46 to 50 150 51 to 55 58 56 to 60 39 61 to 65 24 66+ 47

NB: Population projections are not available at ward level.

Sources: National Bureau of Statistics (March 2013), National Bureau of Statistics (September 2013)

&National Bureau of Statistics (2012).

A BASELINE REPORT - ESRFesrf.or.tz/docs/NGBRRe.pdf · effective management of the tanzanian natural...

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