Tanzania Looks to Creating a Sovereign Wealth Fund

03. Aug, 2012

Jakaya Kikwete

Jakaya Kikwete

The east African country of Tanzania is on pace to become the next sub-Saharan nation that plans to set up a sovereign wealth fund based on natural resources. Currently, Sub-Saharan sovereign funds make up a small portion of the total outstanding sovereign fund investor class by assets under management.

The proposed Tanzanian sovereign fund will be funded by future earnings derived from large gas deposits in the southern region of the country, along the Indian Ocean coast. In June 2012, gas reserve estimates tripled by offshore exploration discoveries by ExxonMobil, Statoil, BG Group, and Ophir Energy.

Tanzania is transforming into an energy hub in the region due to natural gas discoveries.

In September, the government of Tanzania signed a US$ 1.2 billion loan agreement with China for the construction of a pipeline. The Tanzanian government expects the completion of the 532 kilometer gas pipeline project that will connect the south to Dar es Salaam.

[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Available Today

Twitter Digg Delicious Stumbleupon Technorati Facebook Email

Go Back: HOME