Tanzania Looks to Creating a Sovereign Wealth Fund
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.
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