United Republic of Tanzania: Selected Issues
IMF Staff Country Reports, April 28, 2023
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- United Republic of Tanzania: Selected Issues
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Bibliographic details
- Published: April 28, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400241772.002
Project overview and status
- The paper assesses progress in the project's expected timeline, investment and production prospects, and potential macroeconomic implications.
- Tanzania’s Liquefied Natural Gas project aims to commercialize natural gas discoveries made in the deep offshore basin.
- Negotiations between the government and private sector developers have gained momentum recently and a Host Government Agreement is expected to be signed early this year.
- Preparatory technical work in terms of site selection and acquisition has advanced.
Macroeconomic implications and scope of assessment
- The paper is the first step toward a more comprehensive assessment of the macroeconomic impact of the project, which will require information on the technical details of the projects as well as the fiscal regime.
- If the project goes through, it has the potential to transform the Tanzanian economy.
Lessons and analytical focus
- Drawing from review of empirical literature, the paper highlights key lessons for managing revenues from natural gas.
- Analytical themes include interaction with monetary policy transmission mechanisms and potential macroeconomic shocks (keywords indicating focus areas: Monetary base, monetary policy transmission mechanism, interest rates shock, T-Bill rate shock, standard deviation shock, impulse response).
Remaining steps, risks, and prerequisites
- Notwithstanding recent achievements, several important steps remain:
- Amendment of relevant laws
- Preparing project blueprints
- Environmental assessments
- A final investment decision
Content in this bundle
- United Republic of Tanzania: Selected Issues; IMF Country Report No. 23/154; April 5, 2023