A couple of articles ago, I wrote in our sister publication that east Africa is headed towards becoming amanufacturing hub in Africa. Go to http://eaers.blogspot.com/2012/05/east-africa-set-to-become-africas.html
One of my critics- probably a Tanzania wondered whether i don't have anything better to say. My analysis was based on the fact that East Africa is becoming energy secure-meaning the region has more energy sources to choose from.
Now events in Tanzania prove that I was not talking hot air. Reports indicate that Tanzania is beginning to take right choices and make right decisions. The country will soon begin construction of a 390MW gas fired electricity generating plant worth a US$598 million. That in my view is the best decision taken by Tanzania. 390MW of power is a significant proportion of Tanzania current generating capacity. Some estimates place it at aroiund 30-40 per cent of the current output.
Tanzania has significant quantity of Natural gas, and more is being found every week. This means that she has the potential to produce more gas fired electricity for herself and spare some for her energy starved neighbours. This being a reliable, cheap and clean source of energy, power rationing in Tanzania will soon be history.
Cheap power means low cost of production and therefore cheap goods and services. That is what is expected of industry in Tanzania - efficient operations that produce cheap, quality products for the domestic market and even for the regional market.
What's more, more power available means that TANESCO will have to connect more people, including the rural areas which would result in more employment in the country.
Another step in the right direction is the decision to process gas in order to add value. Reports indicate that the construction started last week on a 532-km (330 mile) pipeline funded by a $1.2 billion Chinese loan.
So what should we say? Go Tanzania Go.