Tanzania's gas boom that never was – when local hopes are dashed by global realities

Rising international commodity prices can shape or reshape the fortunes of places. When large mining and oil and gas prospectors suddenly show an interest, a remote area can become a resource frontier – a place that’s far from the socioeconomic centre of a country but important to its economy.

It became clear during my research that the gas industry was expected to speed up development in Mtwara. The imagined future of Mtwara changed from moderate expectations to one of increased wealth and prosperity. This research adds to an understanding of how natural resources interact with development. In Mtwara, it was less the resources themselves that caused the boom, but rather the anticipation of a future gas boom. When it failed to materialise, the area suffered a very real bust. This possibility is something that resource-based development strategies need to take into account before major extraction even takes place.

Investment focused on supply sectors. Mtwara lacked any internationally certified hotels, catering companies or other amenities for oil and gas staff. Real estate and construction also rode this wave of investment. Within just a few years, Mtwara’s economic prospects and imagined future had been dramatically entwined with international gas prices.

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